6 Major FinTech Trends to Take the Industry by Storm in 2020
It is no hiding the fact that Financial Services is moving at a rapid pace with Financial Technology (FinTech) getting reinvented with passing years. If you check out the last couple of years, you would realise how various FinTech trends have emerged.
It's just a matter of time when startups and businesses across the globe start accepting the importance of FinTech allowing them to be a part of their routine business processes and undertakings. Meanwhile, we have listed out six key trends to change the course of digital fintech solutions scenario in 2020, out of a plethora of trends as predicted by experts.
Before we get to the actual point, decentralised finance refers to elimination of intermediaries such as brokers or financial experts when availing the financial services. It is such an emerging trend rapidly gaining traction from many peer to peer payment app developing firms, since this would mean businesses adopting technologies like cloud computing, artificial intelligence (AI), big data, Internet of Things (IoT), decision making decentralisation, risk taking decentralisation, record keeping decentralisation via distributed ledger technology (DLT), and so much more.
What it means to a business?
DeFi adoption can play a defying role in helping businesses be accessible socially, bring transparency in the business operations, increase the turnaround speed, and most important of all pull down the overhead costs. Other than these businesses can have a streamlined direct communication with customers via mobile payment solutions to resolve the queries in no time, can focus on core business rather than investing tons of time in customer relationship management, and more.
Digital money is just about everywhere today and is the future of financial technology. Digital wallets makes online payments and transactions ease enabling blockchain and cryptocurrencies gaining weightage.
With crypto revolution taking a toll in the past years, this is only going to continue with coming years. The fact that new cryptocurrencies are getting launched everyday makes this trend only growing with time.
What it means to a business?
Due to booming blockchain, the business expansions can’t be ignored since physical transactions can easily be replaced by these cryptocurrencies. Most businesses have already started adopting digital money as a source of making payments and such a trend is no sooner going to die.
Chatbots have been the talk of the industry in the fintech arena with developments taking place each year. Looking at 2020 it won’t be surprising to see artificial intelligence machines taking over the physical people when it comes to servicing the customers.
What it means to a business?
Banking and financial services have been using AI in some of the departments for quite some time now. Considering the fact that it can be hard to implement intelligent technologies, a one size fits all approach can be really difficult to tackle, still consulting companies into AI are getting into it.
The automation into fintech arena has helped to reorganise legacy systems leading to redefining existing traditional processes resulting in significant cost cutting for businesses. The key benefits of RPA are it is a system applicable to structured, straightforward, and rule-based tasks enabling businesses to focus on core tasks freeing up good amount of time for business activities, with an enhanced customer experience, reducing errors, and optimising costs.
What it means to a business?
RPA has this wonderful ability not just to streamline the business processes but enhance productivity to an unimaginable extent using as limited resources possible. Additionally, it does have tendency to improve compliance within a business in accordance with regulations in so many countries.
Looking at the numbers, global companies are adopting cloud computing technology with 22% apps running on cloud technology. Most fintech companies have started to integrate cloud into their business operation becoming cloud native leading to agile teams backed by high scalability and ease of managing infrastructure as well as data centers.
What it means to a business?
Innovating around customer centric services have made fintech firms fo be a part of global resolution wherein cloud migration is not just inevitable but enabling business owners to be prepared for a world-wide adoption. In fact, you will see more of fintech engineers working on cloud computing to create, debug, and deploy products and services faster than ever.
Due to an absolute cut-throat competition based economy it comes as no surprise if companies are moving towards fintech consulting business rather than building fintech products or services while taking a big risk. Most digital payment solutions offering firms tend to commit a blunder of taking competition for granted and then reaping the failures making consulting job a safer job in comparison.
What it means to a business?
Consulting has a major role to play in guiding startups and businesses to fast track as well as streamline business processes and activities for any industry especially the ones starting in the fintech arena. This means a lot of scope for fintech financial services into consulting, right from resource allocation to safe and secure innovation, avoiding time and money pitfalls, regulatory compliances, cloud migration, payment integration, and many other aspects.
Seeing the historical record of fintech bandwagon, majority of companies have struggled in the past with a non-technological conventional setup filled with so many challenges with rising expectations of customers. This has paved way to financial technology offering web and mobile banking solutions accompanied by a number of trends (we have just discussed the major ones) to help businesses with cloud based environment, virtual intelligence, and automation for making things easier, faster, and affordable.
Author bio
Nikunj Gundaniya, Product manager Digipay.guru, one of the leading Digital wallet solutions, which provides mobile finance application development services.
He is a visionary leader whose flamboyant management style has given profitable results for the company. He believes in the mantra of giving 100% to his work.