Michael Zetser, fintech expert and investor, said that in the world of financial services, financial technology is no longer just a buzzword. It is the future of finance due to which it has become essential for both businesses and users to keep up with the innovations taking place. In recent times, the fintech market has been expanding at a very rapid pace, with numerous innovations and advancement giving the industry a boost.

Business leaders need to be aware of the top fintech innovations in order to leverage them in their operations. Likewise, people need to be aware of them because it can provide new career opportunities. Specializing in various areas of fintech could help people in preparing for lucrative roles in the sector. Since they are expected to change the course of financial services in the future, keeping up with the innovations can prove to be useful. Michael Zetser has outlined some of the top fintech innovations to be aware of.

  • Payment processing solutions

The most popular fintech innovation are payment processing solutions that are being widely used nowadays. The top options are Venmo and Stripe, which have managed to garner a huge user base globally. People are already using their phones and smartcards for making online purchases, but now smart card chips with biometric integration are also being introduced.

Biometric verification can include facial recognition, fingerprints, lock patterns and voice control. These credentials cannot be stolen by hackers, which means they are capable of offering a higher level of security. This gives users peace of mind when they are using fintech services that utilize this measure.

  • Software as a service

Amongst the many fintech innovations that have been seen so far, the next promising one is Software as a service, which is aimed at improving accessibility of financial services. The existing business landscape has become highlight competitive and businesses require flexibility and speed in order to keep up. SaaS enables businesses in using software to ensure efficient usage of resources. For instance, operating servers is no longer necessary for a business, which can save both time and money.

  • Cybersecurity improvements

According to fintech pro Michael Zetser, cybersecurity is one of the most notable concerns in the world of fintech. Hackers target new fintech solutions for identifying vulnerabilities and exploit them. Therefore, effective solutions are needed for protecting sensitive data.

The existing data security practices have been falling short, as there have been numerous incidents where users have had their funds and information compromised. To combat these problems, decentralization and multi-cloud data storage are some innovations that have been introduced. Fintech apps are also using KYC and AML measures for cybersecurity purposes.

  • Low code platforms

Another prominent innovation in the world of fintech is the use of low code platforms that can be used for creating apps and programs based on graphical UI tools. These platforms do not require standard coding and can be used for developing fintech apps. The good thing about these platforms is that they can help in bridging the skill gap and adapting to market dynamics, thereby boosting the number of users.

  • Blockchain and IoT

Two more fintech innovations that have been disrupting the world of finance are blockchain and IoT. The fact that blockchain is handy for facilitating the security of user data has made it extremely important. Fintech expert Michael Zetser states that blockchain has a lot of potential because of the transparency it offers. It is open source and accessible to everyone and it is not possible to change and modify data.

DeFi applications are taking advantage of blockchain technology and smart contracts for making advancements in fintech, as they are useful for gaining user trust. As far as IoT or the Internet of Things is concerned, it has been used for developing wealth management platforms that are being widely used these days.

  • Artificial Intelligence (AI)

If there is one technology that has shaken up the entire world, it is artificial intelligence (AI). It has also made waves in the world of fintech, as AI has been used for developing sophisticated algorithms. It has proven to be immensely useful for risk management, as it can be used for examining credit profiles to respond to loan applications thereby reducing the risk of loan default. AI has also been used for improving customer experiences in the fintech space, as chatbots have become quite popular.

  • Regulatory Technology

RegTech is one of the most prominent innovations in fintech and Michael Zetser believes everyone should know about it. It is essentially the use of automation for ensuring compliance with various regulations. A number of tools have been introduced to help users in reporting and monitoring compliance data and is helping financial firms in coping up with the introduction of new regulations in different countries.