Digital finance trends driving the market
The pandemic led to a global transformation, primarily in the digital world. This situation has forced companies to become more open to innovation. In addition, market demands have changed, which is also a strong incentive for companies. In order to maintain their position, they need to regularly analyse digital finance trends that will help improve service levels.
Open Banking
Open Banking is a concept that provides a high level of security when customers share their financial information. The sharing of this information is between different banks or organisations. Open Banking uses APIs and interfaces to ensure transparency of actions and protection of transactions. For example, a customer’s banking data will be available to insurance companies through specific applications. In this way, the organisation can check solvency and approve or reject an application for insurance or credit. Open banking also makes it possible to make online payments.
RegTech
A promising technology in the digital financial market is RegTech. It monitors compliance with all the rules and principles of fintech activities. RegTech-based solutions make it possible to automate part of the processes to increase data transfer security. In addition, such programmes analyse and inform about potential threats to the banking system. With the help of RegTech, financial organisations can significantly simplify their interaction with regulators. The technology also simplifies the data transfer process.
Payment Gateways
Payment Gateways are special services that enable electronic payments and interaction between customers, merchants and financial organisations. At the same time, these services provide security and high transaction speed. Many payment systems operate based on this technology, including Payoneer, which you can use for cross-border payments.
Biometric authentication
Passwords have a low level of protection. They also take time to verify. This is not the case with biometric authentication, which allows you to confirm your identity and minimise hacking and theft quickly. Biometrics has several advantages over traditional verification methods:
– provides high levels of data storage security;
– fast processing of information;
– the fact that fingerprints and voice timbre are unique makes theft virtually impossible.
The technology is being actively improved, leading to more and more possibilities for its use. Biometric authentication is in use in a number of financial institutions and is often in combination with voice recognition systems.
Voice payments
According to surveys, 44% of people would like to receive banking services via voice assistants. A number of financial organisations are already actively using voice technology to make payments. Capital One, for example, offers customers the ability to pay bills using Amazon’s virtual assistant, Alexa.
