The Top 3 Fintech Trends to Watch Out For

As we mark halfway through a turbulent 2021, it’s time to take a breath and take a look at the fintech sphere.

The global coronavirus pandemic has accelerated the fintech world as global lockdowns saw more people than ever before start using digital tools for shopping, sending money, and banking.

However, as the vaccine rollouts mean normalization slowly creeping back into lives, what fintech trends should we be looking out for? Here are the top three:

Fee-Free Trading

Although fee-free trading has been around for a while, it boomed during the pandemic. The rise of companies such as Robinhood came as a whole new generation of traders entered the financial trading ecosystem under lockdown. 

Traditional retail trading companies were a little slow to react, but enjoying record volumes and record onboards themselves, they embrace the competition and opportunity that free-trading offers.

How companies continue to engage the new traders is a different story, but with the growth of AI technology in trading now, it is worth following.

AML Compliance

Stepping up the fight against anti-money laundering will continue to be a feature of the fintech sphere. On December 3rd, 2020, the 6th AML Directive was introduced in European law. All EU members and their organizations must implement these regulations by June 2021. The new Directive aims to close the gap of domestic legislation and harmonize the anti-money laundering definition throughout EU member states. 

Yotam Namir, founder, and CEO of Tech View, a compliance and technology company, says:

“AML is of growing importance, especially in the world of cryptocurrencies, were not long ago it was a bit of a wild, wild west situation. Blockchain and AI technology will eventually make AML easier, faster and cheaper.”

The Evolution of DeFi

The Decentralised Finance (DeFi) world continues to evolve. Yield Farming, which offers its users to maximize returns by locking up their crypto assets and, in turn, earning interest, crypto coins, and tokens, continues to grow and, as technology advances, continues to benefit the user.

Although May 2021 saw a 90% drop in the NFT (Non-Fungible Token) market, NFT’s are here to stay. How they evolve will be interesting to watch, but the concept, technology, and opportunity are all there to be developed and maximized.