According to the latest analysis done by McKinsey & Company, investment in the fintech industry is rising and expected to surpass $30 billion by the end of 2020. Compared to the year 2011, when it was only $1.8 million, this is going to be an unparalleled growth. So, what can be the reasons? In this article, we will see the list of top four latest trends in the fintech industry, which are immensely contributing towards its unstoppable growth.
Robotic Process Automation (RPA) is playing a pivotal role in creating a powerful impact on financial institutions. The technology enables them to become more effective and proficient by automating their operations.
Nowadays, RPAs don’t need to be programmed. They observe humans, learn from them, and then perform tasks as per requirements. From customer onboarding and their verification to risk management, security checks, data analysis, and reporting, RPAs take care of each aspect of business operations. Moreover, they also robotize the most repetitive and monotonous administrative functions.
Though hyper-personalization is becoming a trend now in many industries, financial service is no more exception. Today, with the help of big data and artificial intelligence (AI), many financial institutions process, store, and drive insights from data, and make hyper-personalization possible on an unmatched scale. They gather information about customers, their behaviors, and browsing history. By integrating AI, they utilize these insights to deliver a personalized customer experience and grow in the market.
Blockchain is a decentralized and distributed computer file that is disrupting the financial industry tremendously. It safeguards the industry from any fraud and identity theft, which costs financial institutions billions of dollars annually.
Blockchain can be used for multiple purposes like smart contracts, digital payments, identity management, and trading assets. Today, many companies are interested to invest in blockchain. In the United States of America, the investment in blockchain is predicted to reach $6,700 million by 2023.
Mobile payment is the next big innovation in the fintech industry. It allows consumers to perform transactions instantly, invisibly, and free of charge. Also, it provides full security and makes consumers less reliant on cash.
Today, we have several tech giants like Google, Apple, Tencent, and Alibaba who have their payment channels in the market. WeChat Pay is one of the most renowned payment platforms in China — chosen by millions of users each day. Also, Alipay — a third-party online and mobile payment platform of Alibaba, is the world’s largest mobile payment channel.
With the rapid advancement in technologies and the emergence of innovations, 2020 is going to be an interesting year for the fintech industry.