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Banks and financial services firms must tighten security protocols and interventions. They could, however, do so without jeopardizing consumer comfort. This is where biometric technology comes into play.
Fremont, CA: COVID-19 has triggered digital adoption in almost every area of life. In the year 2020, there will be a substantial increase in digital and financial literacy. This allowed banks and financial services firms to enter areas that were previously off-limits to the industry. If more people gain access to financial services and banking, incorporating technological solutions is becoming a requirement for the financial services and banking industry.
Let us look at some important developments that will influence fintech startups in 2021.
Further expansion of digital banking services and the introduction of digital-only banks will be a prominent theme in 2021. People avoided bank branches and premises in the aftermath of the pandemic, fearful of catching the virus. They gained a better understanding of digital banking services and resources. Now, an increasing number of people choose to handle their finances on their smartphones and PCs rather than standing in long lines or filling out tedious paperwork, making digital banking the go-to solution.
Biometric Security Systems
As banking and other financial services become more widely available and affordable and the number of transactions increases, service providers and consumers may be more vulnerable to cyberattacks. Banks and financial services firms must tighten security protocols and interventions. They could, however, do so without jeopardizing consumer comfort. This is where biometric technology comes into play.
Companies can ensure a fast and seamless user authentication flow while protecting user data by using biometric security systems. The use of biometric security systems to ensure secure authentication methods is expected to increase in the coming year.
Algorithm-driven services include autonomous finance. They want to have customized and optimized experiences by learning about their customers' priorities, buying patterns, and risk tolerance. Fintech applications are laying the groundwork for autonomous finance by assisting people in managing their financial capital and achieving their financial objectives. Autonomous finance, comprised of fintech applications, will expand significantly in 2021, thanks to increasing digital and financial literacy.