FinTech Trends for a Thriving Start to 2020

FinTech Trends for a Thriving Start to 2020

By CFO Tech Outlook | Wednesday, August 07, 2019

Technological developments indicate that every person will get benefits from smarter and secure ways of working, which in the short-term holds incredibly thrilling months ahead.

FREMONT, CA: The financial technology is revolutionizing the way the world carries out business, guiding companies to consider the investments they need to make to have a thriving start to 2020.

It is an exciting time in the industry, where tech innovators grow convenient solutions for data analytics, the extended use of big data, and better access to alternative lending. Meanwhile, with the growth of FinTech worldwide, the speed and scale of emerging trends are also set to continue on a steady upward path.

There are some trends companies need to watch out for before the year ends:

A Platform Such as Alternative Lending:

In the present time, alternative lending is considered as one of the fastest-growing FinTech industries, where enterprises are opting for cash advance loans rather than traditional bank counterparts. The simplicity and swiftness at which companies get to secure their alternative finance can be a massive part of their appeal. Besides, having easy payment terms, their popularity can go to the next level.

Within the market, there are highly regarded alternative lending companies working on a virtual basis and approving credit via phone and email. Conventional financial institutions have been facing severe competition, and it seems to be increasing in the coming years as more and more SMEs prefer alternative funding.

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Open Banking:

The peaceful digital revolution encompasses a series of reforms that monitor the methods of dealing with financial information by the banks. Banking needs to be fairer and more transparent while boosting new product advancement and awareness are still considered low amongst the public. People stay truly cautious about sharing their financial data, but the ones taking advantage of open banking have an increasing number. Soon, traditional banks, alternative finance providers, and FinTechs will aim to work together better and interact with the benefits of open banking effectively to remain ahead of the transformation.

Backing the Crowd-Funding Initiatives:

For start-ups, crowd-funding is still proving to be the go-to-sites and the day is not far when they will hit the headlines around the world. Positively, numerous people are enduring the selfless approach and are willing to help the small companies and individuals who grow products that tempt them or appeal to the audience. To a great extent, many of them invest the right amount of income into getting the projects and products off the ground.

There exist many success stories with many start-ups who are now achieving mainstream recognition. By considering their indications from these types of businesses, FinTech companies are searching for methods to capitalize on the receptive market. There are endless investment opportunities, and it covers nearly every conceivable asset available. It helps savvy entrepreneurs not to be short-sighted and explore the possibilities that can be gained from these go-to-sites.

Safety of Vulnerable End-Users:

Fraud can be considered a progressively complex issue since every transaction done currently for goods and services adapt the emerging technologies. The payments via contactless technology have made the elderly in particular susceptible to scammers and hackers. The FinTech industry has made several steady strides to protect vulnerable people from financial fraud over the years. The readily available modern services aim to allow people in maintaining their financial independence. They also help them in protecting assets as well as providing filters to balance spending and accountability.

Pre-paid cards having controls that can allow people to block specific merchants, while some apps or services aim more at just raising a red flag issue. A red flag cue can alert people in case of potentially fraudulent activity or a missing regular deposit.

Voice Banking:

AI has turned out to be a seamless part of the everyday routine where people can verbally ask machines or virtual assistants to make specific arrangements. The banking and finance industry is yet to experience the availability of the virtual or voice assistants that can be utilized for payments of services and good.

Since countless customers have adapted smartphones for banking services, voice payments are set to become a natural progression for tapping on the go. Several banks and financial institutions have taken the initiative to offer services to their clients by availing the option of over-the-phone and voice-led safety checks the first step on the path of progress.

FinTech companies, in 2019, will continue to compete to offer stronger, safer, and more advanced solutions to their clients. By looking at the sophisticated digital voice assistants and its rapid growth, the development seems to go further than only allowing people to make payments using voice technology. In the coming years, computers might be communicating with the financial institutions on behalf of people as well as handling their complex matters such as invoicing, securing loans, or renewing insurance. 

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