With the start of a new decade we see a new chapter in the Fin-tech industry begin.
What has been a big end to the 2010s for fin-tech companies, we look forward to 2020 to see trends to look out for.
Digital footprint has been at the forefront of tech over the past few years and with the arrival of Blockchain this is only set to expand in 2020.
Couple that with increasing online security concerns, independent banking and crypto boom then we can anticipate 2020 will pick up where the late 2010's left off.
Below we've outlined the major trends to look out for in 2020.
Forbes defined Blockchain as:
'a special immutable computer file that is decentralised and distributed, is disrupting financial institutions.'
And this has many implications on the Fin-tech industry in 2020. Blockchain is essentially the new combatant of banking and digital fraud. Estimated to reach $6,700m in the US by 2023.
In simple terms, Blockchain is the technology that underpins digital currency (Bitcoin, Litecoin, Ethereum, and the like). The tech allows digital information to be distributed, but not copied.
A big year for Blockchain is expected in 2020 as banking gurus recommend the service so the repercussions this will have on Fin-tech will be felt this year.
2. Digital Only Banking
Digital banking or 'digibanks' as the key proponents such as Revolut, Monzo and Starling are considered are taking over the banking world.
P2P transfers and a digital only landscape means that the fin-tech industry is not only at the heart of this movement, but also needs to be ready for changes in 2020.
Importantly, CACI says 42% of high-income professionals will be moving away from desktop banking to mobile channels within the next five years.
This means that fin-tech needs to be ready for the challenges looming.
This growing trend leaves the door open for more internet fraudsters in the future, with 2020 being a pivotal time in the changing finance/tech landscape.
3. Intelligent Bots
Many sites now offer the services of live chat, notably this is something as a business you can easily implement on the likes of Hubspot's CRM.
However in 2020 Fin-tech companies need to be aware that these chat bots are evolving as part of intelligent tech.
With the likes of Alexa and Google Home for example, we've already seen the development of voice command in the home.
It's looking like in 2020 that these chatbots, which are heavily used especially in the finance industry, will continue to dominate user experiences.
According to Gartner, by the end of this year over 85% of all financial interactions will be carried out between large companies and customers. Meaning fin-tech needs to be ready for this continued growth.
Throughout this article we've discussed how the changing trends in the fin-tech industry affects regulations. So it goes without saying that it's a big consideration going into 2020.
The introduction of Blockchain alongside growing cyber-security threats mean that finance and tech companies are on high alert for what will certainly be a year of challenges.
Despite this, governments will be working on regulations around fin-tech changes and the growing issue of data ownership.
Ideally, 2020 will bring a standardised set of laws for changes in the fin-tech market, however with constant changes the regulation will have to move fast to keep up.
5. New Ways To Pay
Over the past decade we've seen the physical wallet be replaced by the digital one. Contactless payments replacing chip and pin.
For 2020 we expect to see this develop further.
The introduction of Blockchain and 'digibanks' as we've mentioned have become footnotes in the changes we expect to see in 2020 for fin-tech.
Whilst being able to seamlessly transfer money between accounts and P2P it looks as though there are to be new and innovative ways to pay on the horizon.
2020 is going to be another big year for fin-tech, with big decisions to be made on strategy, it is an ever changing landscape which brings excitement considering what we've seen.
It also must be met with coherent planning, which is why it's important to outline key trends we anticipate coming up for fin-tech in 2020.