6 FinTech Trends That Will Transform Banking In 2020
23 December 2019
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(FinTech Egypt – Business2Community)
As the traditional and digital worlds of finance continue to collide and evolve, the joint opportunities that arise from this collision are certainly increasing, although not devoid of risks. FinTech is a perfect example of how both worlds can co-exist, collaborate and share experiences while enjoying favorable results. The continuous adoption of FinTech products & services gives a promising outlook on the sector’s potential, and we wanted to shed light on six global trends that are expected to take over the scene in 2020.
The Evolution of Artificial Intelligence
By now, most businesses have at least heard that AI can be applied to several areas of their core offering and a lot of them have either experimented with it or have applied it to some aspects of their company. Despite having only a few known cases that have successfully implemented, scaled and monetized it, AI is the most efficient when used in analytics and data collection methods when it is coupled with machine learning (ML) to automate processes, optimize performance and deliver data-driven results.
In the coming year and beyond, AI and ML will continue to evolve and it might end up being that both of these trends will be at their most efficient when combined with boosted analytics, alternative data sources and a company’s business processes.
The Revolution of Voice
Voice-enabled devices are increasingly finding their way into our lives, providing a new input method that could very well evolve to be the dominating one in the future. According to Comscore, they estimate that half of all online searches will be voice-based by 2020.
Voice is definitely in line with the fast-paced evolution of digital products & services, and when combined with artificial intelligence and machine learning, the potential applications are basically limitless. FinTech brands should adapt their core offering to accommodate voice-activated commands if they seek to differentiate themselves from competitors, enhancing customer experiences for the tech-savvy customer base. This tech-savviness will require integrating voice technologies in banking technology as well, where customers will be able to open accounts or transfer funds using voice on mobile banking applications.
FinTech companies should implement this new trend to ensure customer loyalty while staying ahead of the game in terms of competition.
The Complex but Crucial Presence of Blockchain
Faster adoption rates and integral commercial applications were expected in 2019 when it came to using Blockchain technology in business, but 2020 should prove to deliver even more proof of concepts in many industries; and digital finance is at the core of these industries. Blockchain can help to solidify relationships between FIs and customers due to its trust and transparency aspects, as well as reducing transaction times, improve cash flow and many more benefits.
The Expansion of Wireless 5G
With the 5th generation of mobile internet on the horizon for most of the world, connected devices are being empowered more than ever. Successful implementation of new technologies in the banking sector is highly dependent on seamless connectivity across devices, and 5G is the fabric that enables this vast portable network. Both digital banking infrastructures and customer experiences will greatly improve with 5G, and the extent of its dominance will also extend to IoT devices (Internet of Things) and voice-activated mediums. Financial institutions looking to explore new connected platforms will definitely rely on the speed and robustness of 5G connectivity.
The Rapid Rise of Chinese FinTech Ecosystems
Although not necessarily having a direct impact on the MENA FinTech ecosystem, Chinese FinTechs are not similar to Western ones in the sense that they are more dependent on existing highly-engaging consumer platforms, as opposed to Western platforms that focus on select areas at a time. A great example of the Chinese FinTech way is Ant Financial, a product that acts as an add-on to Alibaba’s giant e-commerce platform to support customers with a wide range of B2C services like online payments gateway Alipay, MYbank for mobile banking and more. This different approach could end up influencing FinTech entities in the MENA region.
Cyberthreats and Cybersecurity
Once a niche concern for the select few, cybercrime is now a commercially known threat that has found its way into our daily lives. This is of course largely due to our ongoing connectivity to our devices at home and on the go, and FinTech applications are a prime target in this day and age. However, tremendous security efforts are exerted by banks and other FIs to combat these threats and guarantee safety & privacy for customers. Digitized businesses need to pay attention to critical challenges such as customer data breaches, competent cybersecurity staff on board, security automation, fraud and more.
To wrap up, these six trends are the top candidates that are expected to influence FinTech trends in the most significant ways. FinTech is on the rise around the world, and the future of digital financial services will largely depend on how businesses adopt these technologies and adapt to dynamic FinTech markets.
Tags
FinTech trends, Artificial Intelligence, AI, Voice technology, Machine Learning, ML, Alibaba, Alipay, MYbank, Cybersecurity, Blockchain, 5G, MENA, digital banking
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