Fintech Trends To Watch Out For In 2020

Automated technology that is developed for improving the financial industry has gained a lot of traction and attention over the past few years. From money transfer services to mobile payments, fintech is revolutionising how businesses and consumers handle their finances and transactions. In fact, the growing shift of consumers using their mobile devices to manage their personal finances is fuelling the rise of fintech businesses and challenger banks. Monzo, who is considered as one the biggest challenger banks surpassed 2 million customers and Starling (one of their direct competitors) are expected to hit 1 million customers by the end of 2019. These impressive stats quite clearly prove that the fintech industry is quite literally booming. In fact, Monzo’s share price increased 25x in value in 2019. So, if you are wondering where you should invest your money; maybe have a look into the fintech industry and the opportunity it offers. As with any technological advancement, fintech developments happen very quickly, and business owners are going to want to keep up; especially as we go into 2020. Let’s take a look at the trends that are expected next year.

More Partnerships

More partnerships amongst fintech businesses is expected in 2020. This trend is coming about due to the amount of smaller businesses realising the power of partnering together. Fintech business have always been focused on one segment of a particular market, but when working together, they will be able to offer more relevant services and disruptive products.

Regulation Technology

Regulation is absolutely everywhere in the financial industry and is one of the largest overhead expenses for the majority of businesses. Many regulation activities are still handled manually by humans. But, next year, more regulation technology is expected to hit the market, which will automate and streamline processes together with reducing costs.

Cryptocurrency to Cash Conversions

Cryptocurrency has been a hot topic among consumers for a few years now and is a growing interest within the financial industry. Businesses are going to be on the lookout for emerging technology to make cryptocurrency to cash conversions possible. While there are still regulations in place surrounding this, there is an opportunity for it to become a reality in 2020.

Non-Fintech Businesses Entering the Market 

We are going to see non-fintech businesses entering the market to grow their customer bases. Large businesses like Monzo and Starling are already expanding into other areas of the financial industry, like lending. However, there are risks involved with entering the financial sector, and large businesses are not immune to competition.

The Use of Fintech for Financial Protection

Fintech has already proved that it can protect vulnerable consumers, such as the older generation who are targeted for fraud. Or the younger generation that are still learning how to manage their personal finances. New technology is continuing to enter the market, such as Visa cards that block suspicious transactions.

Unique Mergers

As the fintech industry grows and expands, leaders in the industry will continue to acquire tech companies, blurring the lines and reducing their costs in the process. If you work in the industry, then expect to see competitors start to buy or merge with big data and software companies to drive customer retention and acquisition.

High-Interest Accounts

High-interest cash accounts are going to be a big deal in 2020. In fact, there are already a few fintech businesses already offering accounts with high-interest rates. However, whilst this seems a lot better than what the traditional banks offer, market trends could affect what fintech businesses can offer next year.

Robotic Process Automation 

Next year, robotic process automation (RPA) is going to prove as the most useful tool in the fintech market. This type of bot can handle transactions, maintain records and make calculations. With RPA, almost anything will be able to be automated. Even in certain situations where RPA cannot completely automate a process, it is still going to free up more of people’s time.