A 24/7 citizen of the World Wide Web, Shobhit Behal is interested in learning more about how the internet is shaping the way we live, think, and act in this day and age. He is enthusiastic about exploring fraud identification, spam elimination, and internet scams. During his free time, Shobhit loves petting dogs and playing football.
Biggest Challenges For FinTech Players
FinTech companies have essentially changed our relationship with money and also brought about a major upheaval in how we conduct financial transactions in our day-to-day lives. Given the potential of this sector, major companies have entered into the field. However, as discussed in detail at major tech conventions, the realm of FinTech is rife with obstacles that are hindering its growth. Through this blog, we will review some of the significant challenges faced by FinTech companies:
Cybersecurity
The pandemic fuelled the popularity of cashless transactions, which in turn has helped FinTech companies flourish in recent months. This has also caused a steep rise in fraudulent transactions and scams. Therefore, it is no surprise that data security has gone on to the top of the agendas of businesses offering their products online. This means that B2B FinTech players must go the extra mile to offer additional security measures to their clients, such as data encryption, biometric authorization tools, as well as real-time notifications to ensure the safety of customer data and critical company information.
New Regulations
The FinTech world is slowly gaining the attention of regulatory bodies around the world. Given the concerns surrounding crypto exchanges and cashless transactions, the realm of FinTech will continue to be under the scrutiny of governments, as seen with the emergence of new laws regulating payment services as well as data usage. Therefore, it is crucial for FinTech companies to thoroughly understand the regulatory risks and compliance requirements before introducing new applications and software in the market to safeguard their businesses.
AI Adoption
There is a unanimous agreement that AI and predictive analytics tools have the potential to revolutionize the banking and financial services industries. Companies that adopt such tools and help financial institutions to leverage available data to enhance client retention have a lot to gain in the coming years.
However, a majority of FinTech firms are facing substantial roadblocks in embracing such lucrative tools and technologies. This is primarily because of a shortage of workers who have the requisite technical know-how. As we step into the post-COVID-19 economy, companies must ramp up their recruitment efforts as well as offer in-house training to help in the upskilling of existing employees.
Personalization
Millennials and the Gen Z generations prefer tailored services that have been customized to meet their specific financial needs and goals. For B2C FinTech players, offering personalized services can prove to be the key to more customers and profits. But it is not easy. Personalizing one’s messaging and sending them at the right time through the right channels requires a lot of resources. The need of the hour, therefore, is to deploy next-gen customer analytics tools that can help companies gain a better understanding of customer expectations and behaviors and automate such critical tasks. For this, companies must stay up to date with the latest advancements in the sector.
The world of FinTech has been witnessing tectonic shifts, mainly after the 2020 pandemic. To make the most of the opportunities that have emerged in these few months and to widen your horizons in this field, book your tickets to the Internet 2.0 Conference today!