Sergey Kondratenko: Technological innovations in fintech startups

According to industry expert Sergey Kondratenko, startups are designed to increase the accessibility and efficiency of the financial services industry. To do this, they use the latest advances in areas such as mobile applications, data analysis, artificial intelligence, blockchain and cloud computing.

Sergey Kondratenkois a recognized specialist in a wide range of e-commerce services with experience for many years. Now, Sergey is the owner and leader of a group of companies engaged not only in different segments of e-commerce, but also successfully operating in different jurisdictions, represented on all continents of the world. The main goal is to drive new traffic, create and deliver an online experience that will endear users to the brand, and turn visitors into customers while maximizing overall profitability of the online business.

Why do you need to study fintech innovation? In order to be financially literate and savvy. And if a person is going to open his own business in the financial sector or has already done so, he must understand that his development is inextricably linked with innovation. Therefore, knowledge in the implementation of financial technologies should underlie economic goods and services.

We must remember that fintech is a radically developing sector, which you need to keep up with and catch all the new products. Otherwise, there is a risk of not being able to withstand high competition and being left behind the ship of the fintech industry.

Those who are ready to keep themselves up to date with modern financial technologies should pay attention to key fintech innovations that are useful for application, according to Sergey Kondratenko.

Sergey Kondratenko: Blockchain reliability and wide IoT capabilities

These two innovations changed the world of investment management and financial decisions.

Today, blockchain is considered one of the most reliable database management technologies in various fields. Its work is based on the fact that each specific data change, information transfer and effort to change them is recorded in the form of separate records.

Sergey Kondratenko draws attention to the fact that this method ensures transparency of the actions of all participants and makes it impossible to delete or falsify data. In addition, blockchain promotes maximum openness of data, speeds up their transfer and reduces the cost of transactions.

The world’s largest financial institutions and banks, such as Visa and DBS, are currently actively using this innovative technology in their activities.

IoT (or Internet of Things) greatly enhances the capabilities of banking and financial applications. For example, a CCTV camera installed in a bank can detect any deviation in customer behavior and instantly report it to regulators.

Areas of application of this IoT technology:

• Calculations in real time. Banks use smart contracts to pay collateral and cash components simultaneously.
• Support for digital assets. This strategy improves the efficiency and scalability of cross-border sales such as transaction processing, securities lending and stock exchanges.
• Authentication ecosystems based on zero-knowledge proof. Customers can now use shared data from authorized partner institutions. This makes it possible to verify your identity online or by phone.
• Decentralized finance (DeFi). Changes the financial environment using deterministic smart contracts. This eliminates counterparty risks and reduces dependence on intermediaries, resulting in cost savings. Another advantage of DeFi is real-time transparency, which increases trust and efficiency of the market.

Artificial intelligence as a way to improve the efficiency of financial processes

The development of artificial intelligence (AI), machine learning and robotic process automation provides many benefits to participants in the financial industry. Among them:

• reducing the risk of loan non-repayment,
• increasing the level of risk management,
• increasing the efficiency of data collection and analysis processes,
• improving the quality of customer service.

Robo-advisors are a major AI advancement in financial innovation. They are becoming increasingly common in the fintech industry. Robo-assistants provide a simple and cost-effective investment alternative. They are quite suitable for that category of consumers who do not have financial knowledge or experience.

– Robo-advisors use sophisticated algorithms to create customized investment portfolios based on risk tolerance and financial goals. They use cognitive computing technologies and big data development trends to create the optimal investment plan for each person, says Sergey Kondratenko.

For example, a bank uses chatbots to resolve basic customer service issues. As these bots increasingly use AI services, they can learn from customer interactions and adapt their learnings into the future. Machine learning uses historical data and real-time data. This is useful for analyzing and predicting future customer behavior, which can benefit fintech companies.

Cloud Computing ? Flexible Services at Reduced Prices

Sergey Kondratenko believes that financial organizations should know about three types of cloud systems: public, hybrid and private.

Public cloud infrastructure is owned by providers who provide cloud services to many businesses or a wide audience. A hybrid cloud architecture consists of two or more types of clouds (private and public) that operate independently but communicate with each other using proprietary technologies. Private system infrastructure is designed to meet specific needs and can be deployed in enterprise data centers or using hosting services.

Recent innovations in fintech include cloud computing, which allows banking companies to eliminate non-core operations. Sergey Kondratenko notes that the cloud provides banks with the opportunity to use flexible data storage and computing services at a lower cost. At the same time, it promotes the development of new formats such as open banking and banking as a service, which changes the traditional relationship between customers and financial services.

For example, Swiss company Billte offers invoice management software that helps businesses automate the invoicing process. They convert unstructured invoices into electronic and QR code invoices. The technology then distributes them across multiple channels, including email and SMS, as well as automated notifications and real-time data. In addition, it records partial payments in multiple currencies, thereby increasing productivity and liquidity for small and medium-sized businesses.

Sergey Kondratenko: Hyperautomation or RPA as an element of digital evolution

Process automation using robotic technology allows businesses to implement software robots (such as chatbots) at scale. It is becoming a key element of the digital revolution, and these technologies are expanding their capabilities. The main objective of RPA (Robotic Process Automation) is to transfer control of data and workflow operations to robots. The main criteria for assessing the viability of RPA technology are high consistency, clear rationale and reliable stability.

– In the future, RPA will be increasingly integrated with artificial intelligence, which will significantly increase its effectiveness in solving more complex business problems. This will speed up the proposal process and ensure better compliance, – says Sergey Kondratenko.

Hyperatomatization technology is used in 3D models of chatbots, which are created using AI technologies. They can communicate with users and respond to their actions in the virtual world. In the banking industry in Meta, they are used for 24/7 instant customer service and other financial responsibilities.

SaaS technologies ? timely service in an economical format

For technology players and traditional financial institutions that are creating new fintech businesses, SaaS is becoming essential. This technology includes open source software as a service.

– SaaS –This is the provision of cloud software to the user, which allows you to store information and manage the application in the cloud, without installing the program on the device.Most often, this is a cloud solution, i.e. located on servers on the Internet. The user accesses the service through a browser or API. At the same time, its support is entirely handled by the service provider. In other words, the SaaS model is when the client works with a ready-made solution online. Pays for access and receives a ready-made tool as quickly as possible, explains Sergey Kondratenko.

Here are some of the main applications of SaaS-based digital payments in the fintech segment:

• Payment gateway is a software application that processes online payments made by customers. It acts as an intermediary between the merchant’s website and the customer’s bank to facilitate the transfer of funds.
• Electronic wallets are software applications that allow users to store and manage their payment information. This includes credit and debit card and bank account information. Electronic wallets can be used to make payments online and offline. They represent a convenient and secure way to pay for goods and services.

Keeper is a prime example of a startup using SaaS technology. It is a smart and user-friendly tax filing software. Keeper connects to bank and tax accounts and automatically personalizes the tax filing process.

And this is only a part of those innovative startups that are actively being implemented and used in the field of financial services. According to Sergey Kondratenko, technologies and new trends in finance and IT are increasingly intertwined. In doing so, they create incredible momentum for the development of new fintech opportunities that already seem limitless. The expert predicts that in the future, fintech startups will only expand and improve for the convenience and reliability of financial services. And it is not surprising that according to some data, by 2026 the volume of deposits in fintech could reach almost $31.5 billion.