Fintech refers to the financial technology and innovation which aims to compete with traditional financial methods. Fintech particularly relates to the delivery of financial services. 

Fintech is an emerging industry using technology to improve activities in finance, but it has already brought some monumental changes to the financial sector.  It has huge potential for future enhancing and disruptive capability, but regulations need to change so that any new technologies can deliver the promised benefits without causing financial instability.  

Fintech has exploded onto the scene, and we have already seen the impact of Fintech on banks. Below are some technologies that are the main forces behind this financial revolution.

Biometric security

Mobile banking is an everyday practice, but it has opened the floodgates for cybercrimes which are increasing on a daily basis. Digital banking has led to many security-related issues.

As a result, banks need to take more security measures. Fintech has already developed two-factor authentication methods, but cyber fraud is still possible. The most effective way of eliminating cyber crime is by installing biometric systems in order to protect customers.

The right biometric systems will prevent any malicious third-parties from gaining access to personal accounts (through the front end at least).


AI is inevitably making its way into the functionality of financial institutions, which is expected to result in significant reductions in operational expenses. Not only can AI reduce banking costs by replacing many human-led activities, AI will also improve the management of security. AI will be more accurate when detecting suspicious activity on accounts, and shutting them down before money is lost. 

In addition, institutions will become more customer centric as algorithms will accurately record customer interactions – allowing banks to focus their efforts where they are needed.

Digital-Only Banking  

One of the biggest revolutions in the last 10 years is that customers no longer have to wait in queues to complete basic banking tasks, making the systems more efficient and reducing tedious paperwork

With banks providing global payments, transfers, and contactless MasterCard along with no transaction fees, there are also opportunities to exchange and purchase bitcoin, and various other cryptocurrencies. 

In the future, you can expect to see more use of ‘blockchain’ currencies and transactional methods, which is basically a digital method of making and recording transactions. Essentially each new transaction is recorded in the ‘block chain’. This means transactions could be more traceable; wiping out huge amounts of fraud, tax evasion, and the funding of crime.

Virtual Cards 

The popularity of using virtual cards is rocketing among people, especially the younger generation. This popularity has arisen due to its high, seemingly impenetrable security. Fraudsters cannot easily steal information from virtual cards. There is also no need for users to worry about disposing of the cards after they expire, and of course – it’s less bulk to carry around in your pocket. 

With such cards, people are managing their expenses more accurately, and with greater ease. Many corporate companies are already issuing their employees virtual cards. This means it’s much easier to keep tabs on expenses, particularly where receipts are also digitally logged. No more taking your mates out for beers on the company credit card!

Trading Platforms

Trading on currencies and markets was once the preserve of the professional city based trader, who made huge profits and commissions from trading on behalf of ‘customers’. Fintech has revolutionised trading, making it more accessible to everyone, and seriously reducing the costs of investing.

Despite the benefits of accessible trading platforms for all, markets can become less predictable and more volatile. There are many examples of bubbles being created, with soaring stocks as a result of social media mass-action.  However, on the flip side, these volatile trading platforms can result in huge and unexpected losses. Some market crashes are seemingly unexplainable, turning trading into something more akin to gambling on dog races.

The possibilities that Fintech can bring to the financial sector are endless.  Fintech is developing and expanding with new and modern technologies at considerable pace. As AI improves, we can expect to see giant strides forward in this market over the next decade. Governments and regulation will need to try and keep pace in order to harness the benefits, as well as avoiding the disruption that Fintech can bring.  



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