The Latest Fintech Trends in 2020

No doubt, fintech has emerged as a rapidly growing industry and in the next decade, it will continue to grow. According to PwC, since 2014, global investments have tripled to more than $12 billion. There are no signs that the use of fintech in industries will slow down any time soon.

Everyone knows that fintech helps in getting things done in an efficient manner. The use of AI allows us to conduct business and have conversations without any human involvement. For instance, chatting with bots for learning plenty of things.

Since fintech options are becoming common, every industry should adapt to these changes. For being able to manage, access, and spend our money in a better way, keeping an eye on the latest trends is crucial.

Are you wondering will the fintech advancements be helpful for your business? Thanks to fintech, the way we do business has changed; from services we use to products offered. Here are the cutting edge fintech trends that you will see in 2020.


Expansion of Platform as a Service (PaaS)

We all know that consumers want to get services that offer convenience. The traditional financial institutions are unable to meet the demands of the customers along with keeping their information safe. With the evolution of banking regulations, consumers can take advantage of APIs.

With PaaS, financial institutions can easily adapt to the changing needs of the customers. This will even help them to have a system that is in accordance with their needs, so they can integrate cloud platform completely.

The service is capable of performing various tasks including payment processing, team collaboration, management of credit risk, and resource management. According to experts, with the help of fintech, companies will be selling more services to the financial organizations, so they can digitize and enhance risk management along with customer experience.


More Dependency on Intelligent Technologies

In present times, companies are utilizing a variety of technologies in their operations. From Robo-advisors to machine learning, companies have increased the dependency on intelligent technologies.

For financial institutions, the combination of machine learning, artificial intelligence, and robotic process automation. This provides a wide range of benefits like:

  • Improved customer experience by using virtual customer assistants.
  • Use of smarter risk management that will utilize proactive and predictive processes.
  • By using alternative credit decisioning models (ACD), loan defaults risk is reduced.
  • Enhancing operational improvements through gathering and analyzing information.

The intelligent technologies will help in managing, analyzing the information that will reduce the cost and time linked with it. According to Gartner data, the VCAs or chatbot is most likely to take handle more than 25% of maintenance and customer support services.

Blockchain and Cryptocurrency Innovations

One of the most important trends in the fintech industry is the use of blockchain in financial organizations. In a report, it was found financial industries spend $1.7 billion on the new blockchain technology every year. It is predicted that investments in blockchain technology will not slow down anytime soon.

According to PwC, it was showed that 77% of top management professionals want to integrate blockchain in their production process. With the passage of time, it increased the blockchain-based fundraising for new companies in the financial sector. The use of crypto technology across different sectors is also increasing.

Additionally, blockchain is used for security purposes. The new technologies are helping companies detect and predict issues. For instance, blockchain is used for digital identity management. This will provide extra security for consumers and institutions. The blockchain can also integrate easily with all the world of IoT. Many organizations are moving towards blockchain because it is safe. It is capable of managing regulatory concerns and even reduces fraud.

Furthermore, blockchain will speed up the process by making transactions seamless. This is beneficial for both, consumers, and businesses. Financial institutions are using blockchain for expediting money transfers, investments, payments, and assets. No mistakes are made in this technology, so it eliminates the processing errors, which might lead to delays.


By now, everyone is well aware of the uses of cryptocurrency. Many organizations are still determining how they can use cryptocurrency in future markets. The experts have anticipated the following usage:

  • Digital asset management- banks might provide more options for handle cryptocurrencies.
  • Stable coins- it can be backed or flat-backed by service and might have a certain price.

Increased Usage of Regulatory Tech (Regtech)

Another fintech trend that will see this year is regtech. It utilizes Artificial Intelligence for automation risk assessments and to provide an accurate understanding of big data. Since the information collection is growing, there is an increase in regulations. As the supervision increase, the financial institutions have to struggle to keep up with the different new regulations.

New Startups

The startups have the upper hand when it comes to regulatory technology. This is because they are small in size and don’t have complicated processed or systems. There is less barrier for entry of financial startups, so it makes it easy for a platform like crowdfunding or peer-to-peer lending to thrive.

Traditional Organizations

When it comes to traditional institutions, upstarts increase pressure on them. This is because it requires increased investment in new technologies for collecting information. The regtech provides a unique solution for such institutions that will improve management systems like compliance and regulatory problems, storage and data privacy concerns, and customer identification processes: Anti Money Laundering (AML) and Know Your Customer (KYC).


Non-Traditional Banking Services Are Considered More Credible

Many customers, still, find it difficult to trust the banks after the fall of banks in 2008. This gave rise to digital-only banks as their selling point is transparency. However, not many customers feel comfortable using a digital bank.

This is where fintech comes in handy. The virtual institutions offer supplementary services such as financial tools developed using technologies. The increase in neobanks has challenged the traditional institutions to improve their services. This will provide more value to the customers.

Moreover, virtual banks can easily embrace new regulations and will be more flexible. This results in increasing customer confidence.

Hence, these are some trends that you need to keep an eye out for. According to Eyal Nachum, Bruc Bond will be working closely with fintech companies to offer better financial services.