Major FinTech Trends to Watch for in 2020

Fintech is expected to reshape the trading and investment sector in the coming years. In 2020, more low-cost investment offerings and stock trading can be made possible by fintech players.

Fremont, CA: The disruption in the fintech industry is very much visible as it impacts everyday consumers and businesses of all sizes. It is also a highly regulated sector with regulators and governments aware of the need to protect consumers as well as businesses.

Let us look at the top fintech trends in 2020:

The popularity of Neobanks and Challenger Banks

Challenger banks are established institutions looking to compete with traditional banks. Neobanks, on the other side, are usually entirely online, or mobile providers.

Both types of banks are now challenging the traditional banking system, offering a variety of cards, accounts, loan products, share trading, payments, and investment options. In a low-interest-rate environment, neobanks and challenger banks might focus on higher savings rates, lower charges, and responsive, seamless services as well as products.

Robo Advisors

Fintech is expected to reshape the trading and investment sector in the coming years. In 2020, more low-cost investment offerings and stock trading can be made possible by fintech players. This could lead to new players capturing a large percentage of the market.

For instance, Robo-advisors have not yet fulfilled the prediction of gaining significant market share, but they have fuelled the creation of innovative tech tools for investing that is now used across the wealth management industry.

AI and ML

AI and ML have been a popular fintech for a long time. They have accelerated the rapid growth and development of new technologies in the fintech industry.

FinTech can build AI-powered chatbots that function as personal digital assistants to assist customers in completing simple transactions, such as making payments, viewing their account balances, or getting personal savings or investment advice on the basis a customer’s transaction history.