Key Trends in the Digital Financial Sector
Digital finance is gaining increasing prevalence worldwide. Experts have identified several key trends that influence the development of this industry. They have also discussed how high-risk payment solutions align with these trends.
Open Banking
The revolution in the financial services sector, known as Open Banking, is based on the secure sharing of customer financial data between financial institutions. This sharing is conducted with the user’s consent or upon their request.
The advantages of Open Banking include:
✔ encourages collaboration between financial institutions and fintech companies;
✔ provides customers full control over their data;
✔ helps to accelerate the digital transformation of the financial industry.
Online Wallets and NFC
These are fast, reliable, and convenient alternatives to outdated payment methods. For example, digital wallets significantly reduce the risk of becoming a victim of fraud by employing encrypted tokens.
The active use of NFC technology enables small and medium-sized businesses to accept payments through regular smartphones without the need for terminals. These payment methods also align well with high-risk payment solutions because customers can make instant payments.
Cryptocurrency and Blockchain
More and more users prefer to pay for goods and services using cryptocurrency, and many countries are legalizing the receipt of such income. The reason lies in the ability to conduct fast, cost-effective, and secure transactions without geographical limitations. Therefore, each high-risk payment solution that enables cryptocurrency payments is also in high demand among customers.
Blockchain technology can be applied in various fields, namely:
✔ supply chain management;
✔ verification of personal data;
✔ utilizing smart contracts.
Robo-Advisors and AI
The modern level of AI development enables them to perform various tasks that were previously considered exclusively human. In particular, this applies to:
✔ financial planning;
✔ investment portfolios creation;
✔ financial assets management.
The ability to quickly analyze vast amounts of data and track market trends makes robo-advisors indispensable assistants.
Another advantage of using AI in the financial sector is the lower cost of services compared to professional consultants. Today, companies actively utilize AI for credit rating determination, fraud detection, and providing customers with initial online consultations.
Integrated Finances
An innovative approach involves integrating financial services with software and systems that were non-financial before. It helps companies enhance the value of their products and services, increase customer engagement, and gain new sources of revenue.
Integrated finances blur the boundaries between traditional financial institutions and other sectors, driving industry development and enhancing competitiveness. For instance, integrating a convenient high-risk payment solution for companies offering gambling and betting services boosts profitability.
