1.
Hyper-personalization via big data and AI
For many years, marketing experts espoused the benefits of personalization to attract customers and keep them loyal. Today, thanks to big data and artificial intelligence that helps us process, store, and drive insights from the data, hyper-personalization is possible on an unprecedented scale. Financial institutions now have information about their customers' behavior and social and browsing history. AI facilitates real-time omnichannel integration of these insights to deliver a personalized one-to-one marketing experience for their customers at the time when the information is most relevant and useful.
2.
Robotic process automation (RPA)
During 2020, robotic process automation (RPA) will continue to impact financial institutions to help them be more efficient and effective as well as help ensure they meet federal and state compliance requirements. Today’s advanced RPAs don’t have to be explicitly programmed to perform tasks; they can simply observe what humans do and then automate or suggest improvements to processes. This includes processes such as customer onboarding, verification, risk assessments, security checks, data analysis and reporting, compliance processes as well as most other repetitive administrative activities.
3.
Conversational interfaces
According to Gartner, by 2020, chatbots will interact with the customers of 85% of banks and businesses. By eliminating human involvement in these interchanges, productivity, and speed improve. In fact, according to one report, financial chatbots save over four minutes on every interaction. This is a booming area due to the progress made in natural language processing and speech generation. Customers of financial institutions have come to rely on conversational interfaces to provide 24/7 service, instant responses to queries, and quick complaint resolution to improve personal banking significantly. Conversational interfaces also provide an easy and economical way for organizations in the financial sector to receive customer feedback.
4.
Blockchain
Blockchain, a special immutable computer file that is decentralized and distributed, is disrupting financial institutions. Blockchain can make things more efficient in the financial services industry. Since fraud and identity theft cost financial institutions billions of dollars annually, blockchain has the potential to save the industry from experiencing these significant losses. Blockchain in fintech is expected to reach $6,700 million by 2023 in the United States. Financial institutions will use blockchain for smart contracts, digital payments, identity management, and trading shares.
5.
Mobile payment innovations
One of the latest “big things” in fintech is the growth of the mobile payments industry. Consumers want payments to be instant, invisible, and free (IIF). Mobile payment innovations might even do away with our traditional wallets as global consumers are less reliant on cash. Google, Apple, Tencent, and Alibaba already have their own payment platforms and continue to roll out new features such as biometric access control, inducing fingerprint, and face recognition. One of the most popular payment methods in China and used by hundreds of millions of users every day is WeChat Pay. Alibaba’s Alipay, a third-party online and mobile payment platform, is now the world’s largest mobile payment platform. Many mobile payment platforms are building programs and offers based on the user’s purchase history.
While many financial institutions are continuing to adopt new technology to enhance operations and improve customer service, these five trends will provide exciting avenues for innovation. Financial institutions realize they must learn how to use fintech to their competitive advantage.
6.
Crowdfunding platforms
allow internet and app users to send or receive money from others on the platform and have allowed individuals or businesses to pool funding from a variety of sources all in the same place. Instead of having to go to a traditional bank for a loan, it is now possible to go straight to investors for support of a project or company. And while their applications range from family and friends funding to fan and patron funding, the number of crowdfunding platforms have multiplied over the years.
7.
Insurtech
Fintech has even disrupted the insurance industry. In fact, insurtech (as it's been so-called) has come to include everything from car insurance to home insurance and data protection.
8.
Robo-Advising and Stock-Trading Apps
Robo-advising has disrupted the asset management sector by providing algorithm-based asset recommendations and portfolio management that have increased efficiency and lowered costs. Since the rise of more advanced technology that can analyze various portfolio options 24/7, financial institutions have adapted to offer online robo-advising services - including the likes of Charles Schwab (SCHW) - Get Report and Vanguard. Additionally, other popular robo-advising services include Betterment and Ellevest. Perhaps one of the more popular and big innovations in the fintech space has been the development of stock-trading apps. When once investors had to go directly to a stock exchange like the NYSE or Nasdaq, now, investors can buy and sell stocks at the tap of a finger on their mobile device. And with inexpensive and low-minimum apps like Robinhood or Acorns, investing from anywhere with any budget has never been easier.
9.
Budgeting Apps
One of the most common uses of fintech in 2019 is budgeting apps for consumers, which have grown exponentially in popularity over the years. Before, consumers had to create their own budgets, gather checks, or navigate excel spreadsheets to keep track of their finances. But after the fintech revolution prompted the development of financial services apps, consumers can easily and efficiently keep track of their income, expenses and other budgeting tools that have revolutionized the way consumers think about their money. Budgeting apps like Intuit's (INTU) - Get Report Mint help consumers track their income, monthly payments, expenditures and more - all on their mobile device.
Hyper-personalization via big data and AI
For many years, marketing experts espoused the benefits of personalization to attract customers and keep them loyal. Today, thanks to big data and artificial intelligence that helps us process, store, and drive insights from the data, hyper-personalization is possible on an unprecedented scale. Financial institutions now have information about their customers' behavior and social and browsing history. AI facilitates real-time omnichannel integration of these insights to deliver a personalized one-to-one marketing experience for their customers at the time when the information is most relevant and useful.
2.
Robotic process automation (RPA)
During 2020, robotic process automation (RPA) will continue to impact financial institutions to help them be more efficient and effective as well as help ensure they meet federal and state compliance requirements. Today’s advanced RPAs don’t have to be explicitly programmed to perform tasks; they can simply observe what humans do and then automate or suggest improvements to processes. This includes processes such as customer onboarding, verification, risk assessments, security checks, data analysis and reporting, compliance processes as well as most other repetitive administrative activities.
3.
Conversational interfaces
According to Gartner, by 2020, chatbots will interact with the customers of 85% of banks and businesses. By eliminating human involvement in these interchanges, productivity, and speed improve. In fact, according to one report, financial chatbots save over four minutes on every interaction. This is a booming area due to the progress made in natural language processing and speech generation. Customers of financial institutions have come to rely on conversational interfaces to provide 24/7 service, instant responses to queries, and quick complaint resolution to improve personal banking significantly. Conversational interfaces also provide an easy and economical way for organizations in the financial sector to receive customer feedback.
4.
Blockchain
Blockchain, a special immutable computer file that is decentralized and distributed, is disrupting financial institutions. Blockchain can make things more efficient in the financial services industry. Since fraud and identity theft cost financial institutions billions of dollars annually, blockchain has the potential to save the industry from experiencing these significant losses. Blockchain in fintech is expected to reach $6,700 million by 2023 in the United States. Financial institutions will use blockchain for smart contracts, digital payments, identity management, and trading shares.
5.
Mobile payment innovations
One of the latest “big things” in fintech is the growth of the mobile payments industry. Consumers want payments to be instant, invisible, and free (IIF). Mobile payment innovations might even do away with our traditional wallets as global consumers are less reliant on cash. Google, Apple, Tencent, and Alibaba already have their own payment platforms and continue to roll out new features such as biometric access control, inducing fingerprint, and face recognition. One of the most popular payment methods in China and used by hundreds of millions of users every day is WeChat Pay. Alibaba’s Alipay, a third-party online and mobile payment platform, is now the world’s largest mobile payment platform. Many mobile payment platforms are building programs and offers based on the user’s purchase history.
While many financial institutions are continuing to adopt new technology to enhance operations and improve customer service, these five trends will provide exciting avenues for innovation. Financial institutions realize they must learn how to use fintech to their competitive advantage.
6.
Crowdfunding platforms
allow internet and app users to send or receive money from others on the platform and have allowed individuals or businesses to pool funding from a variety of sources all in the same place. Instead of having to go to a traditional bank for a loan, it is now possible to go straight to investors for support of a project or company. And while their applications range from family and friends funding to fan and patron funding, the number of crowdfunding platforms have multiplied over the years.
7.
Insurtech
Fintech has even disrupted the insurance industry. In fact, insurtech (as it's been so-called) has come to include everything from car insurance to home insurance and data protection.
8.
Robo-Advising and Stock-Trading Apps
Robo-advising has disrupted the asset management sector by providing algorithm-based asset recommendations and portfolio management that have increased efficiency and lowered costs. Since the rise of more advanced technology that can analyze various portfolio options 24/7, financial institutions have adapted to offer online robo-advising services - including the likes of Charles Schwab (SCHW) - Get Report and Vanguard. Additionally, other popular robo-advising services include Betterment and Ellevest. Perhaps one of the more popular and big innovations in the fintech space has been the development of stock-trading apps. When once investors had to go directly to a stock exchange like the NYSE or Nasdaq, now, investors can buy and sell stocks at the tap of a finger on their mobile device. And with inexpensive and low-minimum apps like Robinhood or Acorns, investing from anywhere with any budget has never been easier.
9.
Budgeting Apps
One of the most common uses of fintech in 2019 is budgeting apps for consumers, which have grown exponentially in popularity over the years. Before, consumers had to create their own budgets, gather checks, or navigate excel spreadsheets to keep track of their finances. But after the fintech revolution prompted the development of financial services apps, consumers can easily and efficiently keep track of their income, expenses and other budgeting tools that have revolutionized the way consumers think about their money. Budgeting apps like Intuit's (INTU) - Get Report Mint help consumers track their income, monthly payments, expenditures and more - all on their mobile device.
Credits:
Forbes.com/sites/bernardmarr/2020/12/30/the-top-5-fintech-trends-everyone-should-be-watching-in-2020/#5d15555d4846
TheStreet.com/technology/what-is-fintech-14885154
PaymentsJournal.com/fintech-trends-everyone-should-look-for-in-2020/
TheStreet.com/technology/what-is-fintech-14885154
PaymentsJournal.com/fintech-trends-everyone-should-look-for-in-2020/
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