SAN FRANCISCO–The financial landscape continues to undergo a transformation driven by innovative fintechs, especially those doing work in artificial intelligence (AI)-driven personalization and the rapidly rising super apps, according to a new report from GlobalData.
“As the banking world pivots from age-old methods to a digital-first paradigm, FinTech startups emerge as the pivotal game-changers,” said Kiran Raj, practice head of disruptive tech at GlobalData. “With the might of advanced technologies like AI, blockchain, and cybersecurity in their arsenal, they are forging a future of cost savings, enriched customer dialogues, and amplified profit avenues. In their quest to redefine finance, these startups are charting the course for our next chapter in economic interaction.”
GlobalData said its latest Startup Series report “Branches to bots: how startups reimagine FinTech” explores the potential of the emerging FinTech trends and various startups focused on these trends.
Super Apps
GlobalData noted so-called super apps are becoming the “one-stop solutions” for a range of financial services.
“They are reshaping the way we interact with digital services, bringing together diverse offerings within a unified ecosystem to redefine convenience and personalization,” the company said.
For example, it noted U.S.-based Brex enables businesses to control their spending management elements such as corporate cards, reimbursements, expense management, and bill payments from a single unified platform.
Gamification
In addition, fintech startups are leveraging gamification to make finance fun, encouraging savings, investments, and financial literacy.
“Businesses are focusing on gamification to foster greater consumer loyalty and engagement with financial products and services,” GlobalData stated.
As an example, it cited Zywa, a middle eastern Gen Z-focused financial services startup, which provides a gamified savings goal tracker and transaction rewards to increase engagement with its target customers.
Biometric Authentication
Startups are also strengthening security by integrating multi-modal techniques such as facial, voice, and iris scanning, in addition to behavioral analytics, according to GlobalData.
“They are utilizing technologies such as 3D facial recognition, deep learning algorithms, speech recognition, and liveness detection to ensure security.”
As an example, GlobalData pointed to TypingDNA, a U.S.-based startup, provides AI-centered authentication and fraud detection solution that analyzes typing micro patterns to authenticate users.
AI-Powered Personalization
“Harnessing AI, fintech startups offer tailored financial advice, personalized investment strategies, risk assessment, targeted marketing, and predictive spending insights,” GlobalData reported. “These innovations empower businesses to efficiently tailor their services to individuals on a large scale.”
As an example, GlobalData pointed to Credolab, an alternative risk analysis startup from Singapore that provides digital scorecards that are built on mobile devices and web behavioral metadata. It offers risk and fraud detection along with personalized personality-based marketing campaigns utilizing granular-level behavioral insights.
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