Fintech is evolving so fast and the Global investments in FinTech more than tripled in 2014, reaching more than $12 billion. It is a revolution which is changing consumer behaviour. Fintech industry is experiencing digital transformation, and we’ll soon see it different from what we have now. Let’s check out the top 7 fintech predictions for 2020.
Competitive environment of today’s market pushes financial organizations to look for ways to improve their operations. New business models appear, the use of new technologies and a fight against legacy are the dynamics to changes and it’s essential to keep both eyes open. Firms should stay on top of fintech trends to know when it is time to act on a new opportunity.
Here is insight consultants list of top 7 fintech predictions for 2020
- Weightage to customer-centricity
- Deal sizes expected to grow
- Security fintech trends
- Digital becomes mainstream
- More focus on Regtech
- Advances in AI and Robotic Process Automation
- Machine learning will enhance finance
Let’s see each one in detail:
Weightage to customer-centricity: In 2020, firms will follow a customer-centric approach by addressing the specific needs of the customers. More focus will be given in building technology capabilities to get more intelligent about your customers’ needs. Companies will offer a seamless omnichannel experience, through a smart balance of human and machines.
Deal sizes expected to grow: Deal sizes are expected to continue to grow in 2019, as investors focus on later stage fintechs with a proven track-record in an effort to reduce risk.
Security fintech trends: Cyber security will be one of the top risks financial firms will be facing in 2020. If customers don’t trust the fintech organization, they look for another one. So, firms must find out top-notch software solutions to protect the data and guarantee the safety of each operation is both the trend and the requirement for fintech sphere. Firms can implement biometric technology or facial recognition for more security.
Digital becomes mainstream: Digitalization continued to be the cause of large-scale and sweeping transformations across multiple aspects of business, providing unparalleled opportunities for value creation and capture. Digital is changing entire industry value chains as it transforms the nature of business. Today, digital agenda extends from customer experience and operational efficiency to big data and analytics.
More focus on Regtech: Investments in regulatory technology will accelerate in 2019, as startups focus on helping incumbent financial institutions reduce costs associated with complying with increasingly stringent regulations.
Advances in AI and Robotic Process Automation: Adoption of AI and process automation have doubled within Fintech programs worldwide. AI will make a great influence on financial planning fraud detection and automation of the core processes. We expect to see the use of AI machines to solve about 10-25% of all financial activities in the nearest few years. Robotic process automation will orchestrate workflows. To reduce the amount of used human resources, financial institutions can apply RPA to their business management solutions. RPA uses robotics to complete the task via GUI (Graphical User Interface). The work ranges from simple actions (selecting items, sending emails) to complex procedures (creating a report, organizing a database)
Machine learning will enhance finance: Machine learning will become more advanced and sophisticated in the coming year. It will help financial services to create deep personalization profiles and anticipate customer needs. Based on the data, transactional bots can be used to offer the users products and services in real time. Such service will increases user engagement and also improve the overall user experience with financial products in a much more interactive way. So, by 2020, firms need to build technology capabilities to get more intelligent about customer needs and prepare the architecture to connect to anything, anywhere. Above all these, make sure that you have necessary tech talents to execute all these.
