4 global FinTech trends that you should incorporate ASAP
Sep 3, 2020
Fintech has become an appealing industry for investors as it provides financial institutions and their customers with more opportunities to manage their finances in more efficient and innovative ways. This field has evolved from a doubtful venture to a prospering area bringing more than $30 million in funding to key market players.
Fintech startups and SME businesses are currently moving out of their niche and starting to operate on a global scale. It means it’s high time for companies to seize the opportunity to bridge the gap between financial services, technology, and customer needs.
In this short article, we analyze the main reports of world leaders and highlight the key fintech trends that will affect the global market in 2020.
Keep reading to know more!
Overview of the top FinTech trends
Trend №1 digital banking
Digital banking has undergone three essential stages. The first phase was caused by the active adoption of ATMs, telephone banking, and contact centers — measures aimed to improve the customer experience and drive sales. The next stage involved SMAC technologies that still have a profound impact on the banking sector.
The current wave of digital transformation in banking is fueled by such technologies as artificial intelligence, blockchain, and robotic process automation. These financial services industry trends are being introduced to drive higher levels of personalization and improve customer experience.
Today, digital banking is one of the leading industry trends that refers to a high-level of digitalization in different financial processes. It provides users with remote access to their accounts so that they can make deposits, check their balance, or conduct transactions from any part of the world.
Customers quickly embraced the idea of digital banking and enjoyed the possibility of managing their finances on their own, which is the main trend in finance now. Having constant access to their own accounts has become a new normal for clients worldwide. Thus, financial institutions cannot ignore this growing demand.
Providing your customers with a chance to keep track of transactions helps companies build trust and enhance the clients’ experience. It also allows financial institutions to manage their data more efficiently, which decreases the risk of data leakage or disclosure.
Trend №2 blockchain
Blockchain has been dominating the headlines of all fintech magazines for nearly a decade now. It is one of the main banking industry trends which eliminates the need for intermediaries and provides users with a possibility to conduct truly secure and transparent transactions.
This fintech trend gave birth to millions of startups worldwide. Being one of the most promising technologies in the financial industry, blockchain has quickly captured entrepreneurs' and investors' attention and provided them with a hope for a new transparent economy.
Although only a share of blockchain startups managed to survive till now, their ups and downs helped practitioners to refine the technology, adding more security and efficiency. In 2020, fintech enthusiasts can expect to see more advancements in this field, which will open up more opportunities to small and big businesses.
Trend №3 AI and robots
When it comes to financial services industry trends, artificial intelligence is something that cannot be omitted. AI, along with robotics and machine learning, revolutionized the fintech market with a brand-new approach to financial operations.
Today financial institutions apply AI-based software to reach higher levels of automation, improve customer service, drive the engagement level, and substitute a number of manual tasks. Artificial intelligence has become an exciting banking industry trend and it is being actively applied in digital banking.
AI has received multiple applications across the fintech sector. Asset management systems are used to manage the client’s funds and provide them with a more comprehensive look at their investment portfolios. Fraud detection software helps spot cyber crimes even before they occur; stock market predictions offer their users meaningful insights, and chatbots resolve more than half of clients’ requests.
And that’s only the tip of the iceberg! Artificial intelligence, as a leading fintech trend, has the potential to substitute a significant amount of manual work and free employees from repetitive tasks. Thus, workers can focus more on strategically essential aspects and allocate more time to more critical issues.
Trend №4 cybercrimes
On one hand, greater digitalization in fintech paves the way to more convenient and user-friendly client experiences. Users can log in their accounts whenever and wherever they are without being physically present in the bank. On the other hand, operating online makes fintech more vulnerable to tech issues and cybercrimes, which is a negative trend in finance.
According to Accenture’s report , the financial industry experienced the most significant losses due to cybercrime in 2018, which was estimated at $18.3 billion. The average number of security breaches also increased up to 145, which is 11% higher compared to the previous five years.
The figures are disappointing. Financial institutions need to put more effort into making their services more secure and ensure their customers’ sensitive data will be kept confidential. Thus, all financial services industry trends should be focused on making the fintech field more secure.
For this purpose, many market leaders, including United Overseas Bank and the Bank of America, built and implemented custom security systems that help keep track of all operations and spot vulnerabilities before criminals will find them. These measures help prevent fraud and make sure the clients’ accounts are safe.
Build a trendy FinTech solution with Mentalstack!
Do you have an idea for a revolutionary fintech solution? Or, perhaps, you are looking for ways to scale an existing one? Reach out to Mentalstack and we will build software in line with the latest fintech trends! With our skilled and experienced developers, you’re sure to get a high-quality product within a tight timeframe!