Humans need objectives. Being susceptible to errors, we’re always in search of an upgrade and this is where the ever-changing trends come in! For businesses, the upcoming ten months are going to be exciting, challenging, and demanding, especially in the fintech industry, as per the industry forecast. Financial technology has come a long way in the past few years. It is disrupting the financial world like never before. In fact, the industry has advanced to glory with the average growth from 6% in 2015 to 64% in 2019.
Alongside developments, its awareness amongst people is now more than ever. Industry giants, startups, and banks have widened their presence in this sector, leveraging industry potential to create a better financial ecosystem.
With so much development within the industry, let’s have a look at the fintech trends that will be much more prominent in 2020.
The rise of digital lending solutions
So far, the fintech industry has revolutionized traditional bank departments and services, equipped them with cutting edge technologies. To stay relevant in 2020, banking and financial institutions will complement lending services with the adoption of digital technology.
Today, these institutions have merely touched the tip of the iceberg when it comes to using AI. With the usage of AI, firms can have a complete 360° look at applicants. In the forthcoming months, more organizations will leverage AI on alternative data to provide simple and quick service alongside enhanced decision-making.
Burgeoning adoption of cloud solutions
The year 2020 will also witness the burgeoning adoption of cloud for their core services. Banking and Financial institutions can reduce their dependency on hardware and the related manpower, profiting on the cloud’s pay-on-demand service. With cloud computing, they will procure and store more information about their clients and innovate their services/products. Besides, they can also adapt to the changing market and regulatory developments.
The advent of blockchain technology
Another important breakthrough, Blockchain holds a significant potential to revolutionize the fintech industry. This technology will benefit organizations in dealing with data breaches. It provides transparency of every single transaction of the involved parties. Moreover, its decentralized network model secures it from cyber-attacks. This rise will also see more collaboration between tech, E-commerce, and financial institutions to provide new financial products and services.
All of these developments will need more compliance and regulations. Hence, the year 2020 will also witness an increase in RegTech investments and relevant jobs. RegTech will support fintech to automate standard requirements and handle compliance.