Fintech Trends to Watch for in 2020
Like any other sector, technology invasion has aimed to improvise the financial sector. Thus, it is evident that Fintech has brought in a radical transformation in the banking sector. Adopting artificial intelligence has further altered fintech companies and has taken it to the next level, by enabling humans to converse with the bots and has improved the sectors by enhancing its productivity.
Recently, about 72 percent Indian have been using digital payment modes for transactions. The various government policies introduced have boosted the digital payment making it 78 percent usage, as of 2017. At present, the Indian fintech software market is expected to touch $1.2 billion and would probably double in 2020 at a CAGR of 22 percent. Let's glance through a few fintech trends that we can expect in the forthcoming days.
Lately, cyber threat is at its peak, and as a precautionary measure for these threats, several organizations have been adopting advanced cybersecurity practices to gain customer's confidence. In the upcoming year, the companies would continue adopting various technologies like biometrics, card tokenization and more which are expected to gradually grab attention in India. The tokenization process encodes the user's crucial information into a random value for every transaction. Such platform would prevent data breach by securing the most sensitive information of the user.
Decentralized Finance at Rise
This is one of the emerging trends in fintech. But, this has gained wider traction within a short period. Decentralized finance eliminates the necessity of numerous agents and centralized process that is traditionally implemented in financial services. Decentralized finance is already changing the transaction procedures. This would affect capital markets, trade finance, and lending, which is caused due to the urge of quicker services, minimal charges and more. The regular technology upgradation in fintech and other related services has paved the way for decentralized finance adoption.
The existing Fintech services are gradually turning towards cloud services. As of now, only 22 percent of apps execute on the cloud. While this number is expected to grow tremendously in the upcoming year, the fintech firms that were launched recently are usually cloud-native and this has helped them accomplish improved agility and scalability as cloud reduces the time spend on infrastructure and data centres.
Introducing RPA to Fintech
Recently, fintech organizations are looking forward to implement Robotic Process Automation (RPA) in their firms. But, RPA implementation would require restructuring in the organization model to suit the RPA. Implementing RPA would optimize cost, reduce human errors, improve customer experience and enhance overall fintech performance.
In recent years, fintech companies have faced several challenges such as tough competitions, customers’ high expectations and more. With the technology advancements, fintech services have increased pace to overcome the challenges and the above trends would further enhance the fintech services in the future.