With the development of technologies, all market branches became involved into a digital race. Even such a solid sphere as finance now has its digital double, thus bank FinTech partnerships represent a productive to cooperate in such a way. The broadening economic field, rapid financial process automation, usage simplification are all about FinTech trends nowadays.
In this post, openGeeksLab has presented the FinTech trends 2020. If you already have that kind application and want to stay in picture, this info would be handy. If you do not have a ready-made solution but aim to enter the sphere, it is a golden chance to turn your business or start-up into a part of digital market. Keep on reading!
1. Next-Gen Banks
As for 2019, the bank FinTech partnerships have undergone drastic changes. Not only amount of banks collaborating with FinTech is rapidly increasing, but also considerably new financial intermediaries appear. Digital-only banks seem to become a tough competitor to traditional institutions. They provide the same or even more varied range of services to their customers with nice additional time economy option.
2. Mobile Apps
The mobile market became more influential in last years, so a mobile app investment is always a beneficial strategy. Both physical and digital banks strive for supplying their customers with proper online service through applications. It is going to become a real craze in modern society because in apps users can perform any pecuniary operation due to few taps without being distracted from their main occupation.
A proper consultation plays an important part in service-providing realm because good assistants usually make profit for their companies. Though a good worker requires salary, bots do not, so that is one more trend in modern financial sphere. Many institutions take advantage of IT achievements, inserting artificial assistants into their applications. Such innovation spares both company’s budget and user’s time, being available at any time.
Financial cybersecurity is among today’s top-topics. As far as the majority of modern data is digital, people are concerned with it being in safety. The cybercrime percentage has rapidly increased in past few years, so data protection sphere is now greatly important. Even big influential companies pay a lot of attention to cyber-attacks prevention, let alone start-ups or small businesses.
5. Blockchain, ICOs
Since Bitcoin rise, the buzz around cryptocurrencies does not subside. Blockchain technologies are in demand on IT market as well as in economic realm. Many digital-only banks or banks collaborating with FinTech are actively discussing the possibility of cryptocurrency implementation to perform money operations. This tendency is highly supported by numerous startups, who want to engage investors via ICOs.
6. Big Data
Close bank FinTech partnerships promoted the evolution in data processing analytics. Now this collaboration resulted in a trend on advanced big data usage. The new format enabled to develop personalized finance field, concerning both clients’ comfort and institution’s interests in service advertising or data gathering.
7. Asian Market
The promising trend in 2019 is Asian market. It causes concerns in two cases at once. First, many new companies are now emerging in Asia, thus Asian finance specialists suggest great changes in the field. Second, Asia is going to become a strong competitor in the nearest future, so big organizations tend to expand their business onto Asian market or establish partnership with local representatives to cover a wider space in the field.
1. On-Demand Insurance
On demand insurance is one among top priorities for 2020. On-demand apps increase in popularity, that is why economic branch cannot stand apart from that comprehensive trend. Financial institutions now offer a wide variety of services online — insurance is not an exception. Customers can get real estate, car, travel or small personal belongings insurance within several minutes in the application. That place on demand insurance among the most promising ideas in the following year due to its convenience as well as clients’ high rates.
As for 2020, financial cybersecurity issue also will not lean back. Many organizations in the coming year aim at designing new strategies for cybercriminals dealing: they improve their security systems, develop the new tools of data protection etc. A strong emphasis is laid onto specific cyber-risks analytics plus productive ways to cope with them before they even appear.
3. Robotic Process Automation (RPA)
Considering the rapid technological realm evolution, big companies became concerned about total automation and ways to increase organization’s productivity. Financial process automation leads to active robotic systems inclusion into the sphere. Such innovation is highly promising due to velocity or performance problems. Wide modern automation programs usage will enable all process participants get maximum out of minimum time.
4. Digital Wallets
On modern terms mobile payments have acquired a significant status in people’s everyday routine, thus further digital wallet expansion is guaranteed. Even physically existing organizations make online sphere a priority for retaining existing clients as well as attracting new ones. Besides, the financial institutions take advantage out of blockchain technologies and the rapid cryptocurrency growth, making bets in 2020 on ICOs as well as on Asian market segment.
5. Artificial Intelligence On-Line Assistance
Along with RPA, artificial intelligence is now very popular among finance organizations. AI implementation provides varied benefits for working process. The most important is economy issue because company owners can replace human assistants with AI programs. Besides, digital assistants can work 24 hours a day to be available at any time. That makes service more efficient for customers who have unusual working hours.
6. Digital-Only Banking
One more trend preceding its popularity in 2020 is digital-only banking. The ‘new generation financial intermediary’ idea has already rooted in modern economic field, so it will only expand. Its close relations to blockchain and cryptocurrency guarantees a firm ground for the near future. Besides, clients are fascinated with ‘banks in phones’, so they highly support this upcoming initiative.
We have enumerated only the core FinTech trends, but there are many more. Other priorities for future FinTech development include boost of PaaS, advanced credit models, Internet of Things, Regulation Technology, Payment Services Directive 2.0 (PSD2).