Five notable fintech trends of 2020

Financial Technology, or Fintech, is more than just a buzzword. It drives new business models, many opportunities, and endless possibilities. So far, it has brought forth many innovations and exceptional tech advancements.

This year alone, the sector has received about $30 Billion as an investment. Fintech has been creating ripples, and experts believe that below trendsetters will reshape the landscape of Fintech.

It might sound futuristic, but they will transform every organization into a fintech.

So, let’s look at the five notable trends redefining the financial services and banking:

Breathtaking Payment Innovations:

Till now, the breakthroughs in payments have always enhanced user experience. Right from physical cards, apps, QR, to contactless cards, innovations happen every single day. Moreover, there is a surge in e-commerce transactions as a result of the pandemic. So, digital wallets and mobile payment platforms are also seeing an uptick. Invisible, Free, and Fast Tap Payment or Contactless Card will be the most sought-after PayTech in 2020.

Blockchain and Data Analytics:

Blockchain can mitigate credit frauds, phishing, identity thefts, and other hacks. And many salutations to the massive investments in data platforms, tools, and talent. AI, Machine Learning, and Analytics are now becoming mainstream and disrupting the financial sector.

Besides, the industry is making great strides with the introduction of these technologies like

• Unveiling the know-hows of making financial chains more secure and transparent
• Include advance decision making & hyper-personalization to the existing solutions.

SaaS API and Bundling & Unbundling of services:

Fintech SaaS is a bigwig that allows bundling and unbundling of banking services. Platforms can be built with specific offerings and use an extensive collection of robust APIs. Customized solutions could be developed through add-ons. Mix and Match products are possible through quick and seamless Banking API integrations.

Neobank or Digital-Only Bank:

Say goodbye to all the brick-and-mortar banks. Forget physical branches, bank tellers, long queues, or appointments.

Imagine a digital bank platform up in the cloud that has all the banking solutions and functionalities into this single platform. Consumers can access services 24*7 via mobile, tablet, web, or other digital channels.

This virtual digital-only bank would replace all the physical branches, and the infrastructure cost is nullified. Investments are only for maintenance, scalability, and security of the platform. This concept is called as Neo-banking.

In simple words, a traditional bank is like a chain of retail outlets, whereas a neo-bank is like an online retailer.

Conversational or voice interfaces and Chatbots:

A chatbot is a much-needed tool for better customer service and a superior banking experience. These financial chatbots resolve user queries swiftly and gather invaluable customer feedback. Also, conversational chatbots are more accurate, save time, store chat scripts for future use, and provide rich insights.

They are also helpful in mapping user journeys and creating customer profiles. Further, voice interfaces could provide similar engagement, like bank tellers. They can re-create a virtual bank experience and retain customer emotions.

Curious to know how fintech has boomed and what we can expect in 2023. Read here.

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