The Fintech sector has had a very active year during 2020, however, the year 2021 looms as the year of the disruption of technological financial services, which have focused on good customer service, interaction tools, application services digital, user interfaces, among other services. In this article, we will talk about the Fintech trends in what corresponds to payments.
There will always be a battle for consumer money, either through spending with banks, through payments themselves, such as mobile or P2P payments. This battle will also take place concerning payroll, in that sense, there are four categories: salary on demand, salary advance, advance direct deposit, and crypto payroll. Proponents of payroll fintech regard it as a financial wellness prospect.
In reality, financial payroll technology is a battle to move up the deposit and payment value chain. “Pro-payroll” Fintech companies offer banks and companies the ability to divert payment checks from traditional operator’s checking accounts and provide their payment and loan services. In 2021, payroll technology is expected to receive more attention, as part of the discussion focuses on generating wellness.
Emergence of Fintech platforms as services
Many of these platforms seek to partner with banks, but in some cases, the banks do not have the equipment to partner with Fintech companies. Although the path for partnerships may seem difficult and resources for their development are still limited, the integration will become the nucleus for growth, executing large projects, and developing other approaches. Many Fintech companies give banks the ability to offer services such as ACH processing, transaction processing to Fintech in a more modular and flexible way, which makes it easier and faster for banks to partner with Fintech companies.
Banking steps up basic solutions through financial technology
Banks and credit unions feel comfortable integrating with the solutions provided by this strategy. It is a viable approach, for institutions that accept or are compatible with the integration and management of providers. In recent years, Fintech has emerged to provide assistance to financial institutions to implement this strategy.
Battle for small businesses moves the value chain up and down
To compete with large companies (for example, Amazon, Stripe, and Square), financial institutions must be integrated into the small business value chain, offering high-value-added services and platforms that improve the end-user experience.
What do you think about this topic? Are there any other Fintech trends for 2021 that you would like to mention?
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