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5 Financial Technology (Fintech) Trends to Watch Out for in 2021 and Beyond – ReadWrite



Aliha Tanveer

It has become appallingly obvious that technology has surpassed humanity. Technological innovations, as well as advancements, are revolutionizing the complete world. Literally, everything is prone towards digitization. According to technological growth statistics, there are approximately 4.88 billion mobile phone users across the globe as of January 2021. 62% of the world’s population owns mobile devices. People use mobile devices even for their financial transactions since after the pandemic outbreak.

Fintech Trends to Watch Out for in 2021 and Beyond

Since the coronavirus struck, people are more prone to mobile payments and digital transactions. The purpose of this approach is to avoid physical contact, resulting in tremendous evolution in the Fintech industry. Over 69 million people use mobile payment services. Not only this, but also in the United States, in-store mobile payments are reaching $128 billion in 2021.

Financial technology is a novel advancement that is attaining prominence worldwide by substituting traditional financial services in numerous sectors, including payments, wealth management, banking, electronic commerce, social commerce, and much more.

Infrastructure-based technology in application programming interfaces and open platforms is revamping the future of the financial service industry as the operational advancements provided by robotic process automation (RPA), distributed ledger technology (DLT), and chatbots offer sufficient precision, efficiency, and agility.

Revolutionary AI/ML algorithms, as well as blockchain technology, are influencing the fintech industry. Let us lay our eyes on some of the most evolving fintech trends that influence financial infrastructures and this Earth.

Autonomous Finance

Autonomous finance takes off the burden from customer’s shoulders by automating the financial decision-making process with the acquisition of artificial intelligence algorithms. This technology helps customers to come up with instant decisions regarding their finances, such as where to invest them, what to do with the overdrawn account, or how to approve the loan with more favorable interests.

Automated finance initiated from robo advisors concerned with mutual fund management and software-based financial planning. Growth-based organizations expect an enhancement in customer experience with autonomous finance.

Moreover, growth-based companies believe that customers will benefit from enhanced financial wellness and proactive customer service, resulting in company stabilization and developing a technical foundation with automated processes and digitized automation.

According to the study called “State of the Connected Customer,” 68% of the customers have higher expectations from the digital capabilities of companies because of the pandemic. Still, only 27% have handled the pandemic effectively by utilizing their autonomous finance capabilities.

Hence analysts and researchers are expecting more advancements in autonomous finance over time in parallel to the advancement in cognitive technology.

Voice Technology

AI-powered voice technology has advanced to be able to play songs or tell weather forecasts, and this technology is playing a very promising role in enhancing finance-related tasks.

The evolving voice technology can stream infrequent transactions as much as frequent transactions, allowing users to reroute funds among accounts or transactions via platforms such as Monzo, PayPal, Pingit, Square Cash, etc.

The progression in voice technology is expected to evolve from 8% to 31% by the year 2022. Also, it is estimated that robo-advisors are capable of managing an incredible $2 trillion in assets.

Embeddable Infrastructure

Embedded finance is the fastest evolving market, and companies nowadays are embedding pre-built fintech solutions in their software through the latest APIs. It is an impeccable combination of changing financial services into non-financial services. Businesses are rapidly collaborating with companies that offer financial services. Embedded Finance Infrastructure effectively lessens the hurdles for online platforms to provide financial services to their customers.

It authorizes business in MSME, B2C, and B2B segments to immensely increase their customer acquisition, legitimize customer foundation and help in scaling their product offers. According to recent studies, it is said that it is more than a $ 7 trillion market. However, as it is growing with the speed of light, researchers estimate that it will generate total revenue of $230 billion by 2025 only in the United States.

Open Banking

Blending banks and Fintech together, open banking enables data networking across financial infrastructures. The second payment services directive(PSD2) emphasizes financial institutions to release their information in a secure and standardized form. Open baking permits users to share their information effectively, efficiently with ease, flexibility, and security. By hitting approximately 7.2 billion, the open banking sector has succeeded in quadrupling its worth in only a year.

In 2019, open banking generated a revenue of $7.29 billion, and it is estimated that it will surpass the figure of $43.15 billion by the year 2026. Financial infrastructures require Fintech, and Fintech needs credit unions and community banks. Open banking partnerships can offer customers a consolidated view of their bank accounts for effortless and efficient management.

Machine Learning and Artificial Intelligence

Private players and public sector initiatives have enabled user-permitted access to financial data such as cash flow or payroll. Presently, organizations are analyzing this information with the help of revolutionary artificial intelligence algorithms and the latest machine learning techniques. To attain deep insights into business metrics as well as customer behavior.

Predictive capabilities prove to be a game-changer for any company, but such capabilities are highly beneficial in the finance industry. Such capabilities play a pivotal role in the enhancement of security protocols of financial infrastructure. According to certain studies, machine learning and artificial intelligence in Fintech were worth almost $8 billion in 2020. However, researchers are estimating that these advancements will bypass the figure of $26 billion by the year 2026.

Conclusion: What’s Coming Ahead?

Given this trajectory, it is crystal clear that progression in financial technology or Fintech will not stop anytime soon. Also, this evolution will continue to become immensely embedded in almost every aspect of digital tools that we use regularly.

Fintech will continue to make financial services accurate and efficient with effortless access to them. Considering the tremendous evolution in the fintech industry, the global fintech market is expected to reach a market value of almost $324 billion by the year 2026, growing at a CAGR of about 23.41% from 2021 to 2026.

Hence, progression in the fintech industry will encounter simultaneously with the development of embedded infrastructure. Also, fintech evolution is encountering due to the acquisition of revolutionary artificial intelligence and machine learning algorithms. Fintech evolution occurs because of organizations’ efforts that merge these forces to develop a broader foundation. That broader foundation unlocks financial access to the new generation of users and drives innovation at a mighty pace.

Image Credit: burak kebapci; pexels; thank you!

Aliha Tanveer

Technical Content writer, who loves to pen down her thoughts and insights in the best way possible.
Leverages background in computer science to write for highly technical audiences.


Fintech Kennek raises $12.5M seed round to digitize lending



Google eyed for $2 billion Anthropic deal after major Amazon play

London-based fintech startup Kennek has raised $12.5 million in seed funding to expand its lending operating system.

According to an Oct. 10 report, the round was led by HV Capital and included participation from Dutch Founders Fund, AlbionVC, FFVC, Plug & Play Ventures, and Syndicate One. Kennek offers software-as-a-service tools to help non-bank lenders streamline their operations using open banking, open finance, and payments.

The platform aims to automate time-consuming manual tasks and consolidate fragmented data to simplify lending. Xavier De Pauw, founder of Kennek said:

“Until kennek, lenders had to devote countless hours to menial operational tasks and deal with jumbled and hard-coded data – which makes every other part of lending a headache. As former lenders ourselves, we lived and breathed these frustrations, and built kennek to make them a thing of the past.”

The company said the latest funding round was oversubscribed and closed quickly despite the challenging fundraising environment. The new capital will be used to expand Kennek’s engineering team and strengthen its market position in the UK while exploring expansion into other European markets. Barbod Namini, Partner at lead investor HV Capital, commented on the investment:

“Kennek has developed an ambitious and genuinely unique proposition which we think can be the foundation of the entire alternative lending space. […] It is a complicated market and a solution that brings together all information and stakeholders onto a single platform is highly compelling for both lenders & the ecosystem as a whole.”

The fintech lending space has grown rapidly in recent years, but many lenders still rely on legacy systems and manual processes that limit efficiency and scalability. Kennek aims to leverage open banking and data integration to provide lenders with a more streamlined, automated lending experience.

The seed funding will allow the London-based startup to continue developing its platform and expanding its team to meet demand from non-bank lenders looking to digitize operations. Kennek’s focus on the UK and Europe also comes amid rising adoption of open banking and open finance in the regions.

Featured Image Credit: Photo from; Thank you!

Radek Zielinski

Radek Zielinski is an experienced technology and financial journalist with a passion for cybersecurity and futurology.

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Fortune 500’s race for generative AI breakthroughs



Deanna Ritchie

As excitement around generative AI grows, Fortune 500 companies, including Goldman Sachs, are carefully examining the possible applications of this technology. A recent survey of U.S. executives indicated that 60% believe generative AI will substantially impact their businesses in the long term. However, they anticipate a one to two-year timeframe before implementing their initial solutions. This optimism stems from the potential of generative AI to revolutionize various aspects of businesses, from enhancing customer experiences to optimizing internal processes. In the short term, companies will likely focus on pilot projects and experimentation, gradually integrating generative AI into their operations as they witness its positive influence on efficiency and profitability.

Goldman Sachs’ Cautious Approach to Implementing Generative AI

In a recent interview, Goldman Sachs CIO Marco Argenti revealed that the firm has not yet implemented any generative AI use cases. Instead, the company focuses on experimentation and setting high standards before adopting the technology. Argenti recognized the desire for outcomes in areas like developer and operational efficiency but emphasized ensuring precision before putting experimental AI use cases into production.

According to Argenti, striking the right balance between driving innovation and maintaining accuracy is crucial for successfully integrating generative AI within the firm. Goldman Sachs intends to continue exploring this emerging technology’s potential benefits and applications while diligently assessing risks to ensure it meets the company’s stringent quality standards.

One possible application for Goldman Sachs is in software development, where the company has observed a 20-40% productivity increase during its trials. The goal is for 1,000 developers to utilize generative AI tools by year’s end. However, Argenti emphasized that a well-defined expectation of return on investment is necessary before fully integrating generative AI into production.

To achieve this, the company plans to implement a systematic and strategic approach to adopting generative AI, ensuring that it complements and enhances the skills of its developers. Additionally, Goldman Sachs intends to evaluate the long-term impact of generative AI on their software development processes and the overall quality of the applications being developed.

Goldman Sachs’ approach to AI implementation goes beyond merely executing models. The firm has created a platform encompassing technical, legal, and compliance assessments to filter out improper content and keep track of all interactions. This comprehensive system ensures seamless integration of artificial intelligence in operations while adhering to regulatory standards and maintaining client confidentiality. Moreover, the platform continuously improves and adapts its algorithms, allowing Goldman Sachs to stay at the forefront of technology and offer its clients the most efficient and secure services.

Featured Image Credit: Photo by Google DeepMind; Pexels; Thank you!

Deanna Ritchie

Managing Editor at ReadWrite

Deanna is the Managing Editor at ReadWrite. Previously she worked as the Editor in Chief for Startup Grind and has over 20+ years of experience in content management and content development.

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UK seizes web3 opportunity simplifying crypto regulations



Deanna Ritchie

As Web3 companies increasingly consider leaving the United States due to regulatory ambiguity, the United Kingdom must simplify its cryptocurrency regulations to attract these businesses. The conservative think tank Policy Exchange recently released a report detailing ten suggestions for improving Web3 regulation in the country. Among the recommendations are reducing liability for token holders in decentralized autonomous organizations (DAOs) and encouraging the Financial Conduct Authority (FCA) to adopt alternative Know Your Customer (KYC) methodologies, such as digital identities and blockchain analytics tools. These suggestions aim to position the UK as a hub for Web3 innovation and attract blockchain-based businesses looking for a more conducive regulatory environment.

Streamlining Cryptocurrency Regulations for Innovation

To make it easier for emerging Web3 companies to navigate existing legal frameworks and contribute to the UK’s digital economy growth, the government must streamline cryptocurrency regulations and adopt forward-looking approaches. By making the regulatory landscape clear and straightforward, the UK can create an environment that fosters innovation, growth, and competitiveness in the global fintech industry.

The Policy Exchange report also recommends not weakening self-hosted wallets or treating proof-of-stake (PoS) services as financial services. This approach aims to protect the fundamental principles of decentralization and user autonomy while strongly emphasizing security and regulatory compliance. By doing so, the UK can nurture an environment that encourages innovation and the continued growth of blockchain technology.

Despite recent strict measures by UK authorities, such as His Majesty’s Treasury and the FCA, toward the digital assets sector, the proposed changes in the Policy Exchange report strive to make the UK a more attractive location for Web3 enterprises. By adopting these suggestions, the UK can demonstrate its commitment to fostering innovation in the rapidly evolving blockchain and cryptocurrency industries while ensuring a robust and transparent regulatory environment.

The ongoing uncertainty surrounding cryptocurrency regulations in various countries has prompted Web3 companies to explore alternative jurisdictions with more precise legal frameworks. As the United States grapples with regulatory ambiguity, the United Kingdom can position itself as a hub for Web3 innovation by simplifying and streamlining its cryptocurrency regulations.

Featured Image Credit: Photo by Jonathan Borba; Pexels; Thank you!

Deanna Ritchie

Managing Editor at ReadWrite

Deanna is the Managing Editor at ReadWrite. Previously she worked as the Editor in Chief for Startup Grind and has over 20+ years of experience in content management and content development.

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