The Future of Fintech: 5 Technologies Shaping Finance

The Future Of Fintech: 5 Technologies Shaping Finance

According to Global Newswire, FinTech industries will grow at a remarkable CAGR of 23.84% to reach USD 124.3 billion by 2025. Technological innovation and progress are the drivers that will continue to shape the competitive nature of finance for the next decade.

Let us dive into the top 5 technologies shaping finance and examine their potential to improve your business ROI.

Top 5 Fintech Trends To Watch In The Next Years

1. Cloud computing

Research by McKinsey reveals that cloud technology will surpass $1 trillion in terms of  EBITDA (earnings before interest, tax, depreciation, and amortization) for the world’s top Fortune 500 companies. The research shows that cloud computing frees financial institutions from undertaking non-core business activities like infrastructure management while providing agile computing services and flexible storage at lower costs.

In the data security arena, finance institutions are increasingly using cloud computing to enhance their security with the help of automation and cloud-native security tools. In addition, cloud data warehouses are more dependable than legacy IT ecosystems because they incorporate features like data encryption and zero-trust verification to protect against data leakage and fraud more effectively.

2. The “Buy Now, Pay Later” model

In light of the regulations strangling traditional financing and the current global economic slowdown, BNPL is emerging as a successful financing model for consumers to access instant, interest-free, short-term loans by bypassing the traditional credit process. In this space, Fintechs have so far hijacked $10 billion from traditional banks (data by McKinsey’s Consumer Lending Pools).

Finance institutions that dismiss this threat will see a continuous decrease in their market share. To avoid this pitfall, banks must begin to understand how point-of-sale financing and other emerging models will affect their operations in the future.

3. Blockchain 

Distributed Ledger Technology (DLT) is upending the entire FinTech app ecosystem by enhancing how finance systems record, share, and synchronize data across multiple data repositories.  

Existing fintech innovations like decentralized finance (DeFi), digital assets, and non-fungible tokens (NFT) rely on blockchain technologies like zero-knowledge proof, smart contracts, and distributed data storage and exchange. 

Institutional investors are increasing their investments in digital assets, a move that will open up new opportunities for DTL to disrupt established markets. An example of the growing technology value of blockchain is DeFi, whose total locked-up value (TLV) has surged to $50 billion in digital assets from $35 billion six months ago. 

4. Deep learning

Many companies are turning to robotic process automation (RPA) to handle repetitive, time-consuming human tasks, such as data entry, invoice processing, and compliance reporting. The banking industry is also increasingly using these automation services to improve problem-solving capabilities and boost employee efficiency.

JPMorgan has pioneered RPA to increase its efficiency. The banks' CoiN technology can review 12000 loan documents in seconds - a process that used to take up to 36,000 hours of manual scanning.

5. Low code/no code

Grand View Research shows that banks will spend around $21 billion on banking software by 2030. The problem is that there aren’t many top-notch professionals capable of quickly developing banking systems. That’s why low-code/no-code development has become indispensable for banks to accelerate their digital transformation with agile solutions.

Other applications for low-code/no-code in FinTech include:

  • Accelerating the process of onboarding clients
  • Navigating logical hurdles occasioned by traditional and local laws.
  • Liberating limited R&D resources to allow traditional institutions to work on several projects simultaneously.


In the future, the above key technologies will push the financial sector to greater heights of profitability. Traditional financial institutions will be forced to invest a lot of resources in these technologies to ensure they stay on top of trends. 

Subscribe to our newsletter to get expert insights
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

Read more about Technology

Would you like to share your expertise with our audience?
Write for us
Write for us