Nov 17, 2020 ●15 min read
Fintech 2020: Trends That Are Shaping The Industry
The fintech industry as a unit is evolving at every level. The Indian Fintech sector has become one of the key players in the global market. A recent report by Research and Market in March 2020 shows that India, alongside China, were on top for the highest fintech adoption rate of 87%, out of all the other markets in the world. As the Fintech world goes through a reformation, we have listed down 5 key trends that’s likely to shape the way forward for the fintech industry:
As more and more customers get on the digital board, fintechs will need to pay close attention to building trust and consumer engagement. This will be critical in making a place reach the top of the competition. Here, communication includes giving consumers regular updates, sharing clear information about the change of policy, polite customer service and so on.
The ones to adopt the burgeoning blockchain technology will benefit the most, as predicted by experts. This will help financial services to get a better understanding of the offerings, reduce fraud, automate trading processes, ensure secure payment processing and so on. The other thing that fintechs need to pay attention to more closely is -- data analytics, AI and machine learning. According to an online publication, AI is projected to reduce operating costs by 22% around 2030.
Fintechs are known to offer flexibility and convenience. Going forward, this can play a role in determining how they can introduce customized and local offerings for all the customers using data. As new demands will keep evolving, it’ll be up to fintechs to mould themselves using powerful methods with the ability to learn.
Digital payments take payment methods like debit card, credit cards and cash, completely out of the equation—which eventually creates a convenient and speedy experience. The demand for cashless transactions during this pandemic is predicted to create more opportunities for digital wallet operators. The transactions that are digitally linked won’t just benefit in boosting transactions but will also help the industry in collecting data.
We have always heard the phrase “Do more with less” - this is a motto that’s in line with what consumers think. To deal with this, fintechs can provide multiple services within the app. In the coming days, consumers who need banking services are likely to consult those financial players, who offer convenience and simple transactions. These players don’t have to be banks necessarily. Technology will help address this need. With the rapid growth for the need of financial transactions, payments and banking continues to evolve, user experience and quick response to regulatory changes will matter the most.