Fintech market has shown significant progress in the past few years by leveraging a few disruptive technologies like AI, ML, Big Data, etc. The industry has been skyrocketing and is expected to reach $4.8 trillion by the end of 2020. From crowdfunding and mobile payments to digital banking services, fintech solutions are changing the face of the finance industry at a much faster pace.
All these changes are leading the finance sector towards global success. The companies are making enormous profits and are saving a lot by leveraging robust fintech solutions. And that’s the main reason that almost 82% of the companies are planning to partner with a fintech software development company in the coming years. But, what does the future hold for this robust industry? Let’s have a look at it!
Top Fintech Trends To Watch In 2020
1. Mobile Finance Services
There is no surprise that the number of mobile users is growing at a much faster rate. The digitization is changing the current scenario of the global market, and it is expected that there will be around 4.78 billion mobile phone users by the end of 2020. People are now becoming more digital and are relying on digital payment mobile apps to satisfy their financial needs. The typical digital payment platforms like digital wallets, payment apps, and even P2P apps are becoming popular these days.
These digital platforms are offering people more security, more accessibility to the banking services, and ease in payment processing. Many big companies like Google, Apple, Tencent, etc. have rolled out their payment apps in the global market and are making huge profits out of them. Not only that, but many fintech software development companies are also planning to introduce new features like biometric access, including fingerprint and face recognition in their mobile apps. Clearly, mobile apps will remain a trend in the coming years because of their convenience.
2. Adoption Of Cryptocurrency
Another trend that will change the face of the finance industry is the adoption of cryptocurrency. We’ll surely see a spike in the utilization of cryptocurrency by global investors. Many crypto-native companies have unveiled new and reformed enhancements that are enabling the investors to meet the highly-stake and complex requirements of digital users.
Also, there are more opportunities for crypto-to-cash conversions. With the growing interest of users in cryptocurrency and blockchain management, there are high possibilities of witnessing this big trend. Although many rules and regulations are surrounding this particular arena, the chances are that this trend will inevitably emerge and improve the said conversions.
3. Robotics Process Automation
Robotic Process Automation or RPA stands out as the most helpful tool and will remain the hot trend of 2020. This automated bot can maintain the records of customers, make complex calculations, and can answer the user’s queries. Even in the areas where RPA is not fully automated, it frees up your time and enables you to focus on other relevant activities.
In 2020, robotic automation will continue to benefit the global fintech market. It will transform the financial institutions into a more efficient arena and will help them to meet the federal and state compliance more effectively. They will improve many processes like customer onboarding, risk assessment, verification, data analysis, security, and much more.
4. Use of Fintech for Protection
As discussed in the above point, the advances in automation will surely solve the security problems of the fintech market. The new advances in AI and Big Data will make the user data more secure while making the transactions smooth and secure. Blockchain technology is also working in the same direction and is bringing new and positive changes in the field of financial security.
The innovations in the fintech market will also help the senior citizens that are most prone to such cyber crimes, secure their critical data. The rise of prepaid visa cards will make the online transaction even more secure by blocking suspicious merchant purchases.
5. Implementation of Disruptive Technologies
Last but not least, the application of great technologies like AI, ML, Big Data, and voice-based technology will surely drive success for the fintech market. The problems of the finance industry like solving customer queries, security, faster payments, etc. and can be seamlessly solved by the use of these disruptive technologies.
However, there are certain limitations up to which these technologies will help the fintech market in solving the problems discussed above. For instance, the business world may not be needing a faster payment app when it comes to the cost of their security. All in all, the use of disruptive technologies will surely help the fintech market to grow, but to a certain extent.
So, these were the top five trends of the fintech market that are expected to drive the future finance industry. Besides all these mentioned trends, there are some more hot topics like the use of blockchain, digital banks, decentralized finance that are predicted for the year 2020. But, these trends are sure to provide exciting avenues for the fintech market.