KPMG: top 10 fintech predictions for 2020
Business Chief EMEA, takes a look at KPMG’s top 10 fintech predictions for 2020
As the global fintech ecosystem continues to mature, alongside continuous development and focus on open data opportunities, regulatory clarity, growing involvement of big technology companies, and the evolution of advanced technologies, Business Chief looks at KPMG’s predictions for 2020 in the fintech space.
Deals
Number one on KPMG’s list of predictions, includes the expectation that deal sizes will continue to grow as investors focus on late stage fintechs. “Frothy, speculative deals will be increasingly replaced by high-conviction deals focused on companies with proven business models,” commented KPMG.
Product expansion
As fintechs mature, those organisations alongside challenger banks will expand their service offerings beyond their first niche focus area.
Deals occurring in diverse locations
Number three on KPMG’s list of predictions includes the rise of fintech deals outside of traditional markets including: South East Asia, Latin America and Africa.
Rising big technology companies
We have already seen the likes of Amazon more into the fintech space. As the industry continues to grow, more technology giants will shift their focus onto the fintech industry and increase their reach in developing markets.
Digital banking licenses
Ranking at number five, KPMG predicts that more countries will follow the lead of Hong Kong, Australia and Singapore, developing digital banking regimes and using digital banking licences.
Investments
As fintechs look to grow and develop their capabilities, mature fintech will increase their investment in other emerging companies within the industry to access talent and new markets.
Partnerships
Another prediction made by KPMG, is the acceleration of the use of partnership. KPMG sees a rise in big tech players and fintechs, traditional corporates and emerging fintechs collaborating with each other. These partnerships will focus on customers and generating value.
Open finance
As open data opportunities continue to grow, organisations are expected to move beyond banking and into other financial services, as well as solving other common pain points in multiple sectors.
Financial services
KPMG also predicts that the unbundling of financial services will help customers that increasingly seek a solution to the growing complex and fragmented digital world. Resulting in a preference for a trusted platform to conduct their finance.
Cybersecurity
As traditional financial institutions turn towards digital, KPMG believes there will be an increased need for cybersecurity focused fintech, as these traditional institutions move from building to buying.
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