The world of finance is rapidly evolving, driven by advancements in technology and changing consumer behaviors. As humanity moves further into the digital age, several emerging trends are reshaping the financial services landscape. This article will explore five key digital finance trends that readers should be aware of.
Open banking
The delivery of financial services is being revolutionized by the disruptive movement known as “open banking,” which involves securely transferring consumer financial data between financial organizations with customers’ permission.
Open banking makes it possible for outside developers to create cutting-edge programs and services that use this information to offer specialized financial services. It gives customers more control over their financial data and greater access to a broader choice of services from various suppliers, promoting competition and accelerating industry innovation.
If it’s true that Open Banking will evolve toward Open Finance, then we will no longer have limits for wanting the Open Economy. The world of finance could be the forerunner of silo destroyers. RT @antgrasso #finserv #fintech #inclusion pic.twitter.com/iWTPcYlX8m
— Data Society TW (@DataSocietyTW) July 21, 2023
Digital wallets and contactless payments
Digital wallets and contactless payments are quickly gaining acceptance as quick, safe, convenient alternatives to conventional payment methods. Thanks to the proliferation of mobile payment apps like Apple Pay, Google Pay and Samsung Pay, consumers can safely save their payment card information on their smartphones and make purchases by simply tapping their phones on contactless payment terminals.
These digital wallets reduce the risk of fraud while increase ease and enhancing security by substituting sensitive card data with encrypted tokens.
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Blockchain technology and cryptocurrencies
In recent years, cryptocurrencies such as Bitcoin (BTC) and Ether (ETH) have drawn a lot of attention. Blockchains — decentralized networks that offer transparency, security and immutability — power these digital assets. While the use of cryptocurrencies for regular transactions is still in its infancy, they have the ability to upend established financial systems by allowing peer-to-peer trades that are quicker, less expensive and borderless.
Aside from cryptocurrencies, blockchain technology is also being investigated for use in fields like supply chain…
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