6 Emerging Fintech Industry Trends of 2020

The fintech industry is growing globally and is expected to continue its upward tier in 2020. With more lucrative areas and more technologies emerging, fintech companies are maturing at an exponential pace. There has been a paradigm shift towards automation, digitization, and mobility, paving the way for disruptive fintech trends.   

Here are the top 6 emerging fintech trends for 2020:

1. Artificial Intelligence

With 20% of fintech companies already harnessing the power of artificial intelligence and around 41% planning to put it into operation in the near future, AI has become the most popular fintech trend in 2020. A variety of narrow-focused applications are being designed to identify recurring patterns of personal finance.

These patterns and preferences are also being analyzed to launch hyper-targeted promotional campaigns. Advanced chatbots are also being used to facilitate client assistance and repetitive human tasks are now being automated to make financial services quick, convenient and easy. 

2. Cloud-based Applications

A number of top fintech brands are now capitalizing on cloud-based apps to become more accessible to their existing and potential end users. Cloud technology is also helping fintech companies increase their operational efficiency in non-core business processes like accounting, HR, and CRM. Some companies have gone a step further in this direction by testing the efficiency of cloud technology in areas like KYC verification.

3. Instant Personal Loan Apps

Fintech companies are overtaking banks and traditional lending institutions with instant personal loan apps. These instant personal loan apps are proving to be an excellent alternative for getting quick, convenient, paperless and hassle-free cash loans. People who want to avoid a long loan processing time and complex paperwork that traditional banks have are now opting for convenient and cost-effective instant personal loans online. 

4. Mobile Fintech

Modern users rely heavily on their smartphones to get in touch with service providers. People are now searching for financial service providers online, checking interest rates, comparing insurance providers and applying for loans on their smartphones. So fintech companies are also adopting A mobile-first approach to tap new consumer segments that were not accessible earlier. 

5. Blockchain Technology

Blockchain-based financial services are gaining popularity and preference and the market is expected to cross $60 billion by 2024. Blockchain technology has endless use cases ranging from automatic contractual agreements to cryptocurrencies to financial transactions.

It is gaining traction for its ability to reduce overhead expenses associated with confirming authenticity. Investment banks and NBFCs are also embracing blockchain technology to reduce operational, reporting, and compliance costs by more than 30%. 

6. Digital Banking

Digitization is a clear directive for all fintech companies that want to reach out to and connect with modern, tech-savvy users. A growing number of companies are leveraging fintech technology to differentiate their brand from competitors. This is a major reason why digital-first businesses are being taken over by top financial companies that are striving to improvise their offerings and engage new target markets.

2020 will also witness increasing levels of consolidation in lending and payments. As fintech companies look to scale and grow internationally, deal sizes will get bigger and service offerings will expand beyond borders. Collaborations between fintech companies and banks are also expected to grow, especially in areas like digital identity management, AML, and KYC.  

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