With the advancement in technology, all industries are diving into the digital race. The finance sector too is gearing up for a digital makeover. FinTech has emerged to improve and automate financial services, and it is expected to surpass $30 billion by the end of this year. Here are the top 5 fintech trends of  2020 that are going to impact anything where the money is involved.

Robotic Process Automation

Robotic process automation (RPA) will improve user experience. The fintech platforms will use AI-enabled “software robots” increasingly to handle repeatable customer service requests such as sending invoices, security checks, verifications, risk assessments, etc. which were earlier handled by humans. The adaption of RPA will allow customer service executives to concentrate more on other important tasks like improving customer service.

Blockchain

Blockchain, a special immutable computer file that is decentralized and distributed, is saving financial organizations from fraud and identity theft, which costs them millions of dollars. Many financial companies are investing heavily to catch up with blockchain innovations. In 2020, financial institutions will use blockchain for digital payments, trading shares, smart contracts, and identity management.

Digital-Only Banks

These banks are widely famous for convenience banking. Various digital-only banks are following fintech trends and manipulating the possibility of cryptocurrency implementation to handle financial investments. The new generation financial intermediary idea has close relations with blockchain, and it guarantees a firm ground near future. Consumers are welcoming this upcoming initiative as they are fascinated with banks that are easily accessible even through their smartphones.

Digital Wallets

Mobile payments have captured a significant status in our everyday routine. Financial organizations are making the online payment convenience a priority to keep their existing clients and attract new ones. Now, mobile wallets have replaced the physical ones and this trend is rapidly gaining a wider audience. Digital wallets will drive fintech payment innovations, and if blockchain is integrated, it will further disrupt payment systems everywhere.

On-Demand Insurance

The insurance market is also affected by the fintech revolution. Just like how you can get a personal loan on demand, the technological advances have made it possible to get insurance on demand too. The insurance companies will use their experience, creativity and agility to accelerate digital transformation and respond to future challenges better.

Wrapping things up

Financial institutions continue to implement new technology, enhance their daily operations, and enhance customer experience. The trends mentioned above will provide exciting opportunities to innovate and explore. Fintech is the future and financial institutions must realize this; the sooner they adopt fintech, the better are their chances to stay competitive.

About the author

Shiv Nanda is a financial analyst who currently lives in Bangalore (refusing to acknowledge the name change) and works with MoneyTap. Shiv is a true finance geek, and his friends love that. They always rely on him for advice on their investment choices, budgeting skills, personal financial matters and when they want to get a loan. He has made it his life’s mission to help and educate people on various financial topics.