The Fintech industry has continued to evolve over 2019 and we see a paradigm shift with the innovations in the fintech space with the focus on various advancements in digital financial solutions, mobile financial services, digital payments, digital banks, and more, leading to digital transformation.
Let's take a look at some of the key trends that were driving the fintech industry in 2019, a few that are evolving, and what’s in store for 2020 for this industry.
What was HOT?
Blockchain
Blockchain-based systems including financial transactions and cryptocurrencies, and automated contractual agreements eliminate the overhead costs for confirming authenticity. The global blockchain market is expected to grow to over $60 billion by 2024.
Cloud-based Solutions
Cloud solutions enable financial services firms to respond to the changing customer needs in real-time with a secured and scalable platform, with reduced operational cost at the same time. This provides an effective competitive edge. 43% of the banking institutions lack a proper cloud strategy and even fails to have a basic implementation.
CX and UX
With the rise in the use of digital and mobile banking, fintech firms as well as mobile wallet providers and mobile money providers win over customers by building solutions with a great user experience (UX) to offer consistent and superior customer experience (CX). 63% of financial services organisations ranked customer experience as their No. 1 priority.
What was NOT?
Artificial Intelligence (AI)
AI is yet to proliferate into all aspects of financial services, from chatbots to insurance, and more. AI-based solutions are expected to rise from 10 to 25% of banking and financial services activities in the coming years.
Open Banking
Fintech companies and banks need to work in conjunction with other industry players to facilitate Opex X that drives data use excellence that enhances customer experience.
Traditional Banking
The industry is moving from traditional banking practices like corporate banking, investment banking, and more to Digital and Mobile Banking which provides an omnichannel experience to customers. A massive 97% of millennials indicated that they use mobile banking.
Conclusion
With the major digital transformation happening in various areas of the fintech industry, we expect to see large banks and financial services firms innovating more in 2020 with the help of technology solutions like Artificial Intelligence, Machine Learning, blockchain, digital payment, and other digital financial solutions to offer customer centric and secured solutions. Fintech players expect a 20% average return on investment on their innovation projects. Mobile wallet providers and mobile money providers are equally playing an important role in the industry with advanced and secured mobile financial solutions. Looks like 2020 could be an exciting year for fintech.
