Top 5 growing trends in the UAE’s Fintech industry.
UAE is one of the leading countries in the adoption of innovative technology. Fintech in the banking industry is its prime example. This smart technology has significantly changed the traditional ways of banking. Before fintech introduced in the finance sector, it was a very time-taking and tedious task to go to the bank for any work. People would fret at the thought of waiting in those long queues at the bank. Also, banks had to figure out an effective way to deliver a satisfying customer experience.
But now this scenario has completely changed. With the adoption of fintech, the banking & financial services in the UAE have gone through a massive evolution. This new change can be attributed to several components such as customer expectations and regulatory policies. The emergence of innovative financial technology has significantly revolutionized financial services in the UAE. All in all, these new trends have positively changed the conventional systems of money as well as insurance management.
The rise of Fintech companies, mobile banking, and internet banking are some of the top examples of revolutionary trends in the UAE’s banking sector & financial services.
What is Fintech All About?
The Fintech phraseology is basically applied to any technology that has a transformative effect on any processes or organizations in the financial sector. It includes every aspect of these services such as investment management, lending, equity financing, advice, real-time, banking & payments, pre-approved credit, foreign exchange rates, and a lot more.
This innovative technology allows business owners & individuals to make payments and transfers, manage insurance, invest their money, take out credit, apply for business loans & personal loans, buy virtual currency, trade & purchase goods and much more, without standing in those long queues for hours at the bank or filling out the multiple forms.
Here are Few Revolutionary Trends in the UAE’s Fintech Sector
Fintech also refers to Finance & Technology has created a great impact on financial sectors. If this innovative technology has successfully created a huge revolution in the banking & financial sectors, then there will be a lot of opportunities to make a place in the market. In order to avail this golden opportunity, few fintech start-up companies such as Policybazaar UAE and other such start-ups from the financial sector are mainly focusing on competitive technologies like payment technology and retail banking.
Following are the top growing trends in the Fintech sector that are acting as its strong pillars:
Blockchain technology is amongst the most beneficial yet advanced trends in the Fintech industry. This technology mainly works on the principles of data structures, computer sciences and it is said to be the future of banking and financial services worldwide.
Moreover, Blockchain records transactions and it is needless to say that this advanced technology, along with keeping a tab of the data, provides data accuracy, transparency, and efficiency. The main benefit of this technology is the kind of security it provides, enabling secure data integrity. Therefore, it aids in strengthening the trust and reliability factor.
2. Enhanced Mobile Banking
It is one of the top growing trends in the banking system. Customers basically use their Smartphones in order to do several banking procedures such as checking their account balance, bill payments, fund transfers, and much more without visiting the bank branch. This revolutionary trend has taken over the conventional banking systems and in the coming years, this trend is expected to become more efficient & effective to meet the customer’s various requirements.
3. Artificial Intelligence Based Chat Bots
The majority of the fintech organizations in the UAE now have started to adopt chatbox or AI-based chatbots for assistance in customer support services. These AI-based bots have the great potential to replace financial representatives and executives in the coming days since it offers financial suggestions to customers on their own. And it provides the customers the feel of chatting with a personal financial representative. In this manner, this advanced technology reduces the chances of human error and provides accurate information to customers. In addition to this, it can recognize any kind of fraudulent activity very easily.
4. Alternate Lending
Banking industries found that lending funds to small business are not that much profitable. And some of the fintech companies such as Policybazaar UAE have grabbed this opportunity to offer peer-to-peer lending depending on mutual terms & conditions at the low rate of interest. In the UAE, alternate lending services are mortgage loans, money orders, car loans, payday loans, etc.
5. Digital Payments
The majority of the Fintech start-up companies in the UAE have started offering easy and convenient payment modes to their potential customers. Few payment methods have already become famous in the emirates and very soon it is expected that ATM services will be replaced with the digital payments for all transactions.
In A Nutshell
The future of Fintech start-ups in the UAE is bright & every year, you will be finding the increasing use of mobile & card payments and reluctant in cash transactions. Fintech companies are offering great innovations in a very short span of time and we are expected to see more technologies and advancements in the coming years.