Banking and fintech industries have seen many innovations in the past few years. The idea of ordering everything online from medicines to groceries to gadgets is a drastic change in the financial industry. Let’s see what would be the key challenges and trends in this sector for the year 2020.
1. Digital Banks
Banks have upgraded their technology by offering global payments, peer-to-peer payments, contact-less card transactions. Some banks exist in the virtual-world only; they offer all the benefits of the standard bank along with the option to buy and exchange Bitcoin.
Digital-only banks doesn’t require you to stand in long queues or excruciating paperwork to deal with. In recent years, the number has been growing, and so is the revenue of digital-only banks.
Blockchain seems to have change the face of financial transactions by offering a low transaction fee and a global outreach. The global reach also would lead to an increase in fintech partnerships.
The blockchain market was introduced with the bitcoin currency and now has a market of around 40 million worldwide.
3. Payment Methods
Payment can be processed through various channels. Payment innovations started with the onset of cashless transactions. Consumers are now able to pay in a sophisticated manner through a biometric transaction, using retina, contactless card transactions, mobile payment methods. In recent years, being able to make payment using AI, machine learning, blockchain technology have transformed the fintech industry.
4. Artificial Intelligence (AI)
Artificial Intelligence (AI) has revolutionized many sectors of the industry. AI is of great use in the finance sector as the bank revenues exceeding the incomes of the nation. Banks are adopting AI technologies as it works quickly even with the unstructured data.
AI is also being used for chatbots and other smart systems. It also enables faster transactions and provides convenience to the customer.
5. Cyber Security
The very foundation of the banking industry is trust and credibility; making cybersecurity is one of the critical factors in the finance industry. Everyone is adapting to cashless payments or using digital money. It becomes essential to ensure and protect the data and maintain privacy. A weak cybersecurity system might cause data breaches when a bank system is attacked; it can cost the customer money and privacy. A lot of sensitive information can be revealed and used against the customer or the brand in case of a breach.
The pace of change isn’t slowing anytime soon. Banks are changing themselves with the technology getting advanced. 2020 is going to be an exciting year for the fintech industry with many new technologies hitting the market, the growth with the investment and the increase in the number of strategic partnerships.