If you happen to be in the Fintech industry, here are top Fintech trends to watch out for in 2020. Fintech refers to the integration of technology into financial services companies in order to improve their use and delivery to consumers and cut down operational cost. Fintech is revolutionising virtually all areas of the financial industry including investment, insurance, credit card payments and banking sector by applying technologies such as artificial intelligence (AI), big data, robotic process automation (RPA) and blockchain.
One trend to watch out for is the trading platforms which will now allow you to observe the trading pattern of expert traders and their strategies, without even having in-depth knowledge of financial markets, and make well-informed investment decisions. Robo-advisors on their part will provide you with financial advice (based on mathematical rules and algorithms) and investment management will be done online without human intervention.
Another top Fintech trend to watch out for in 2020 is personalisation and automation. As regarding where new investments in Fintech be going this year, Renjith Jose George Palamattom, a Fintech expert and the managing director of an India-based Fintech company called Applied Payments Technology, in his opinion, said that:
“One can expect more hyper-personalisation, enabled by big data and AI. Financial institutions will be able to store more and more information about their customers and deliver an increasingly relevant and personalized one-to-one marketing experience for them. They will also continue to invest in automating processes to ensure more efficiency and more effectiveness in such activities as customer onboarding and verification, risk assessment and data analysis.”
He added that:
“progress made in natural language processing and speech generation means financial companies will be using more conversational interfaces to interact with their clients. Chatbots not only save companies several minutes on every interaction, but they also allow them to provide 24/7 services and thus improve personal banking.
On collaboration and regulation, digital banking will get more popular and limit the visits to banks. Although this has its own limitations, however, we are yet to be convinced if it becomes a fixture in the market, or just another fad. Interestingly, blockchain is increasing rapidly and transforming financial transactions worldwide. The total number of blockchain users in the world now exceeds 44 million and just over three years ago it stood at below 10 million.
Much of the Fintech growth will be driven by startups and big finance industry will invest and partner more with them because of their fresh innovative ideas that those already in the market often lack. Also, these startups will need the infrastructure and know-how that old big players have.
According to Palamattom;
“The rise of Fintech still involves some unknown challenges, but it is already evident it will transform the entire financial industry for the better. All of the industry’s players already need to think of adopting Fintech solutions if they want to have a competitive edge”
New developments in the Fintech industry will mean the need for new government regulations as there are major security issues such as data ownership and cyber crime activities that will emerge.
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