10 Fintech Trends for 2020: Top Predictions According to Experts
f you have yet to wrap your head around the idea of ordering everything from groceries to your latest gadget online, then brace for more radical transformations currently in the works in the financial industry. These Fintech trends will simply impact everything that involves money, from payment to banking.
Blockchain is set to take the stage big time, pushing the capabilities of digital wallets. Nations will be happy to adopt all these tremendous technologies if regulations, security and national standards are well in place.
What is happening in fintech? There’s a valid, overwhelming reason why 88% of brick-and-mortar financial institutions fear fintech startups from digital-only banks to global payment solutions: people are falling for them. Digital wallets are booming everywhere, with nations in a virtual scramble to set national standards.
A technology that’s set to disrupt $4.7 trillion worth of global financial services can do that at any time. And to think that digital transformation has not even fully lifted a finger up yet.
Yet it is not as if these traditional financial companies are out of options. Indeed, many of them have already gone to either invest in these very fintech startups or partner with them. The results have been largely positive and we can expect more of this to happen.
The face of global finance is undergoing a full make-over, all thanks to Fintech startups. No one is immune to this development. The best approach then is to meet these fintech trends head-on. Let’s start with a few of them.
1. Digital-only banking is looming
When a bank that only exists in the virtual world offers global payments, P2P transfers, contactless MasterCard with free transaction fees—and a chance to buy and exchange Bitcoin, Ethereum and other cryptocurrencies—the financial world is quick to notice.
And notice Revolut they did. Revolut, one of the digital-only banks that now fight for customer space in terms of money and membership. In this account, Revolut is joined by Moven, Monese, HelloBank, FirstDirect and the aptly named Digibank among dozens of others.
Digital-only banks have a lot going for them: there’s no need to spend one moment to visit any brick-and-mortar bank, no lines to test your patience, and no agonizing paperwork to deal with. And they’re growing in numbers and revenue all over the world.
They’re also one of the major reasons visits to bank branches are set to drop 36% from 2017-2022.
More: reset pins at the comfort of your home, snap-a-pic bill payment, convenient expense management, quick balance review features, and real-time analytics are some of their other top draws.
Don’t rush to register into any of these fintech disruptors, however. Consider that like other businesses, they have their own drawbacks: they’re bound to be prime targets of the financial fraudsters lurking all over the internet. In an age when financial fraud is the leading internet crime worldwide, this should weigh heavily on your decision.
Digital-only banks might be superbly cheaper and more convenient but what happens to customers when they ran into problems and can’t seem to settle everything online? In traditional banking, customers can at least force themselves to get out of their homes and storm the nearest bank branch to settle matters.
Here the solution is in partnership with traditional banks, where customers can shift to traditional and digital banks at their convenience.
How firmly digital-only banks fix themselves on the financial market will decide if they’re just a passing fad or something that would become an absolute necessity for generations to come.
Considering that the digital transformation still has to peak, digital-only banks have ample time to correct their sails and land squarely on terra firma.