Fintech has been developing by leaps and bounds in the past few years and it is just the beginning. There will be huge developments in this space and we will see a major transformation in everything involving banking, applying for a personal credit line, payments, etc. Here are 5 fintech trends you need to watch out for in 2020.
1.B2B marketplace will increase
Fintech has been transforming traditional bank departments and services, however, there is more to come. One area that will see drastic developments is lending. More and more innovations will be seen in this space. Banks and other financial institutions must develop their lending service offering if they want to stay competitive in 2020.
Banks can develop their offerings by teaming up with fintech providers. They can expand their offerings to self-service digital lending, loan processing, and leasing products. This will especially help the SMEs and fintech start-ups if they want to apply for a loan. The process will become much faster and smoother.
2. Digital-only banking will get more popular
In 2020 and beyond, there will be an increase in the number of digital banks. The younger generation who is always on the move would like to have flexibility in banking that comes with digital banks.
There will be a rise in mobile wallets, AI financial assistants and online global transfers. Moreover, loan processing and credit scoring will all be an end-to-end process.
3. Drastic innovations in payment
Another fintech trend in 2020 will be in payments. There will be an increase in mobile payments, mobile wallets, contactless payments, AI and machine learning, identity verification technologies, and smart speaker systems.
Mobile wallets will overtake physical wallets. In fact, mobile wallets with users’ credit cards will gain a wider audience. People will do a lot of cashless transactions.
Fintech payments are going to be on a rise in the coming years.
4. Better and stronger fintech cybersecurity
Though the financial industry has seen digitization in the past, there is a lot of scope on the security front. Numerous financial institutes have been victims of fraudulence, money laundering, data breach, and IT crashes. These don’t just put the customers’ accounts at risk but also result in huge losses.
Cybersecurity will get more important as it will be developed in 2020 and the years beyond. Fintech will work together to provide cyber-secure solutions and stability to the users.
5. Partnerships in the blockchain space
Blockchain will continue to dominate and change the landscape of financial transactions all over the world. More partnerships will form with traditional financial institutes and emerging currencies will be adopted.
A great number of crypto businesses will seek innovative ways to facilitate interoperability between fiat and crypto. This will allow them to offer the best service for their users.
Fintech benefits will just explode with the new wave of innovation. The demands of the younger generation and a need forbetter financial solutions will drive fintech into newer territories.It will penetrate deeper and will become a norm in the coming years.