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The financial technology (fintech) industry has rapidly evolved, transforming the way financial services are delivered and consumed. Emerging tech trends in fintech are playing a pivotal role in driving this transformation, enabling greater efficiency, enhanced security, and improved customer experiences. Technological advancements are the fulcrum of fintech development, and will continue to disrupt multiple business models in financial services. 

The growth of 4G and UPI, for example, are encouraging use cases, enabling the fintech ecosystem to expand. Simultaneously, the rollout of 5G and the growth of technologies like AI, machine learning, embedded finance, SaaS services, and the metaverse have further strengthened the fintech market.  A recent Ernst & Young FinTech Convergence Council report states that FinTech is expected to reach US$1 trillion in throughput and US$200 billion in revenue by 2030. Some of the tech trends in fintech industry contributing to this growth are discussed below.

  1. Artificial Intelligence and Machine Learning: Artificial Intelligence (AI) and Machine Learning (ML) have emerged as game-changers in the fintech landscape. These technologies enable intelligent automation, deeper data analysis, and informed decision-making for personalized customer experiences, and enhanced risk management. AI-powered chatbots provide customer support and assistance around the clock, while ML algorithms help detect fraud and predict market trends. With AI and ML, financial institutions can enhance efficiency, streamline operations, and offer tailored products and services to customers.
  1. Internet of Things (IoT): The Internet of Things (IoT) is expanding its influence beyond consumer electronics into the realm of financial services. IoT devices, coupled with wearables, enable seamless payments, transaction monitoring, and personalized financial recommendations. For instance, smartwatches can provide real-time spending alerts, while connected home devices can facilitate automated bill payments. IoT-powered data collection also helps insurers assess risks accurately, while banks can leverage IoT data for location-based offers and customized services. As the number of IoT devices continues to grow, the integration of IoT and finance are bound to reshape customer interactions and create new business models.
  1. Quantum Computing: Quantum computing holds immense promise for the fintech industry. With their exceptional processing power, quantum computers can perform complex calculations, optimize investment portfolios, and break encryption algorithms that are currently considered secure. Quantum computing can significantly change risk analysis, fraud detection, and algorithmic trading while enabling faster and more accurate decision-making. However, quantum computing is still in its nascent stages, and widespread adoption in fintech may take time. Financial institutions need to prepare for the potential impact of quantum computing by exploring its applications and evaluating the difference in outcomes. 
  1. Blockchain and Distributed Ledger Technology: Blockchain technology gained attention as a disruptive tech trend in the fintech industry due to its potential to transform financial transactions. The decentralized and immutable nature of blockchain ensures transparency, security, and efficiency in areas such as payments, remittances, and cross-border transactions. Smart contracts built on blockchain enable automated agreements, reducing intermediaries and associated costs. Additionally, distributed ledger technology offers benefits like real-time settlement, reduced fraud, and enhanced data privacy. As blockchain continues to mature, it has the potential to revolutionize various aspects of finance, including identity management, supply chain finance, and trade settlements.
  1. Insurtech: Insurtech refers to the application of technology and digital innovation to the insurance industry, aiming to transform and enhance various aspects of insurance operations, products, and services. It encompasses the use of emerging technologies such as artificial intelligence, machine learning, big data analytics, blockchain, Internet of Things (IoT), and mobile applications to disrupt and improve traditional insurance practices.

Insurtech startups and companies leverage technology to address the challenges faced by the insurance industry, including lengthy and complex processes, manual paperwork, a lack of customer engagement, and inefficient claims management. By leveraging innovative solutions, insurtech aims to streamline operations, improve customer experience, enhance risk assessment, and provide more personalized insurance products and services.

  1. Embedded finance: Embedded finance refers to the integration of financial services into non-financial platforms, products, or services. It involves bringing financial offerings and capabilities directly to customers within their everyday experiences, rather than requiring them to engage with traditional financial institutions separately. By embedding finance, businesses can enhance customer value, improve convenience, and create new revenue streams.

Traditionally, financial services are provided by banks, insurance companies, and other financial institutions operating independently. However, with digital transformation and the growing interconnectedness of various industries, businesses from diverse sectors are recognizing the potential of integrating financial services into their offerings. This integration is made possible through APIs (Application Programming Interfaces) and partnerships with financial institutions.

  1. Open banking:  Open banking is a concept and set of practices that promote the secure sharing of financial information between banks and authorized third-party providers (TPPs) through open APIs (Application Programming Interfaces). It allows customers to grant permission to these TPPs to access their financial data held by their banks, ultimately empowering customers to have more control over their financial information and fostering competition and innovation in the financial services industry.


The convergence of emerging technologies with the financial industry is reshaping the way we bank, invest, insure, and transact. The opportunities for innovation and disruption are vast, promising a future where financial services are more accessible, efficient, secure, and customer-centric. As we navigate this transformative era, embracing these emerging tech trends in fintech will be key to staying at the forefront of the ever-evolving fintech landscape. By harnessing their potential, financial institutions can unlock new possibilities, create unparalleled value for their customers, and shape the future of finance.


  1. What is the future outlook for emerging tech trends in fintech?

The future of emerging tech in fintech is promising, with continued advancements in AI, blockchain, IoT, and data analytics. It will lead to more personalized services, improved operational efficiency, increased financial inclusion, and further disruption of traditional financial models

  1. How can traditional financial institutions adapt to emerging tech trends in fintech?

Traditional institutions can adapt by embracing partnerships with fintech startups, investing in innovation labs, and developing in-house capabilities. They should focus on digital transformation, upskilling employees, and creating a culture of innovation.

  1. How does open banking benefit customers?

Open banking benefits customers by providing them with more control over their financial data and empowering them to access innovative and personalized financial services. It enables easier switching between providers, improves financial management, fosters competition, and lowers costs.

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