Three key fintech trends are revolutionizing the financial sector: 1) New communication channels through digital platforms are increasing customers' digital footprint and enhancing convenience; 2) Regulatory agencies must adapt policies to new risks from cybersecurity and non-banks while central banks update monetary policy; 3) Fintech uses new types of non-financial data and AI/ML for more powerful credit assessments to promote financial inclusion of over a billion unbanked people worldwide.

1. Three Fintech Trends
Revolutionizing the Financial
Sector
intech addresses the issues related to credit scoring and the
informationit uses by implementing different nonfinancialdata
such as type of browser and hardware used to access the
internet, history of onlinesearches and purchases.
The financialsector is going through technological
transformation. Also, the growing demandfor digital services is
driven by the COVID-19 pandemicis fueling the change.
Here are three fintech trends revolutionizingthe financial
industry:

2. 1.New Communication Channels
Communicationinnovation,propelledby variousdigital
platforms in mobilecommunication,online shopping,and social
media, has impacted consumers' daily lives, increasing their
digitalfootprint and data.
The move from in-person bank branch visits to remote, online
communicationusuallyenhances customer convenience and
makes financialmediationmore cost-efficient. It also drives
competitionamong banks to cater to more distant customers.
2.Policy Challenges
Regulatory agencies need to make sure that their expertise is
suitable for the industry to prevent cybersecurity risks and
regulatory arbitrage. New monetary policy needs to be entirely
understood, and central bankersare more countercyclical.
Central banks need to redesign theirmonetary policy
implementationtoolboxas new playersmake banks less critical
for the financialsystem. And allow nonbanks access to liquidity
lines and integrate them into their operations.
Fintech will likely reach out to over a billionunbankedpeople
worldwide, and the transformation in the financialsystem
design can be significant.
New Types of Information

3. Fintech addresses the issues related to credit scoring and the
informationit uses by implementing different nonfinancialdata
such as type of browser and hardware used to access the
internet, history of onlinesearches and purchases. Research
shows that these data sources powered by artificial intelligence
and machine learning are more powerful than traditional credit
assessment approaches and can help progress financial
inclusion.