Financial technology is steadily growing in popularity. It has already proved its efficiency. Today, we can carry out financial transactions in any part of the globe without taking one step outside the home. Moreover, thanks to Artificial Intelligence (AI), no human interaction is needed. We can consult a chatbot, if necessary. Therefore, it’s more convenient to make a payment than ever before.
Despite the vivid advantages of the technologies, the market has experienced a drop in investment due to the current crisis. According to the recent FinTech trends report, Fintech funding in North America, Asia, South America, Africa, and Australia dropped quarter-over-quarter in the first quarter of 2020. However, Europe has seen an increase. It means that the industry is worth studying and investing even during hard times. Let’s take a closer look at the top FinTech trends 2020.
FinTech players have redefined the rules of the game for financial services. They offer low commission foreign exchange, digital branchless banking, online investment management. All this is a new reality that customers like very much. Convenience and affordability matter.
Considering all these, those traditional financial institutions that want to win will choose to collaborate with FinTech entrepreneurs. The trend is already taking place. It will evolve even more with time.
Challenger banks are one of the main FinTech trends for 2020. The trust in traditional financial institutions, as well as government, has been broken because of the great recession. This, in its turn, has put challenger banks in the spotlight.
Many currently existing challenger banks are in a position to compete with traditional ones. The latter are losing since they can’t meet changed customers’’ demands. At the same time, the challenger banks offer superior inline service and transparent pricing, which drives consumers.
Customers seek an individual approach to service in any field. FinTech isn’t an exception. Many people are looking for personalized money management advice regarding their cashflow, aid in financial planning, and investment guidance.
Effective personalization can become a reality only with a combination of technologies and humans. The technologies are responsible for driving meaningful insights, while humans must deliver outstanding service. Apart from that, FinTech entrepreneurs can focus on personalized offers.
Presence of Tech-Giants
Do you remember the collaboration of financial institutions among top Fintech trends? That’s not the limit. Everyone would want to take a share in the niche. Look at what’s happening now. Facebook wants to drum support for Libra; Google is about to roll out checking accounts; Apple is launching a credit card with Goldman Sachs. Tech giants are already there. It scales up the level of competition.
Blockchain almost has a tangible effect on real-world problems. This is the reason why governments are paying closer attention to it. Some are skeptical; others are not. Anyway, we are likely to notice the growth of the digital ecosystem and better regulations. What is more, companies are going to work harder on security and privacy. For example, a new set of protocols Nightfall makes transactions over the Ethereum ecosystem absolutely private.
Voice assistants have emerged in our lives in a very short time. Nonetheless, they are gaining more and more popularity. People are adopting voice search and assistant to help them navigate through the day. People even shop with the help of smart speakers.
Voice assistance systems are penetrating into the financial system. They become integrated with shops, banks, P2P payments. That’s why we are likely to see a whole new level of integration in 2020.
Online is going along with the biggest fintech trends. It’s an indispensable part. Consumers like to make online payments, transfer funds, etc. Why not start investing online, as well? In fact, many people already do so.
There are even fully-automated options. The algorithms manage your portfolio while you are working, eating, sleeping, etc. That’s very convenient! Another amazing brand-new feature is that you can mirror the investment moves of your financial guru. It’s a chance to learn working tactics and gain valuable insights.
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- ‘7’ Essential Ways to Be a Successful Salon Entrepreneur
Although FinTech has become a normal thing like blade signs, it’s still going to impress us!
Have you heard about fintech trends in US particularly? If you did, please, share it with us.