The Impactful Financial Service Trends of 2020

April 22, 2020

Reading time about 5 minutes

Financial Industries have always been at the top in almost every aspect. A few technologies such as blockchain are slowly impacting, whereas Artificial Intelligence is already stable at an influential position. A few more technologies have been explored and taken forward, and that’s how the financial industry will be taking a leap into the future.

Also Read: How Much Does It Cost to Develop a FinTech App?

These are the key trends taking the financial industry forward-

  • Biggies are planning for a better business

Big tech players are holding a massive amount of customer data with detailed and highly personalized information. Banks need to be aware of the biggies like Amazon & Google which are circling the financial service sector, the potential of causing disruption in 2020. These big techs are potential to provide a deeper and logical analysis of the customers and their money spent in a completely better way out. Though the existing marketplace is already among a huge competition, the biggies are no less than in the race.

  • Banks could focus on the bigger picture

In the current scenario, banks are hard focused on a better number of account holders rather than investing in something which could let them have a better picture for the future. Well, the most “to be focused” area today and in near future is the payment options, the online payments are the new sensation putting emphasis on individuals and focus on becoming the underlying platform for the partners and their customers too! In the year 2020, there will be expectedly more banks coming to realize the value of a strategic partnership, putting on a transformational effect altogether.

  • Artificial Intelligence will be powerful than ever!

AI is somewhere the core technology in terms of having the most reliable and detailed analysis. The financial industry relies mostly on the AI-powered analysis to fetch complete information. When it comes to the banking sector. There can be two battles to fight for! One is to prevent fraud and security breach and other one is to have an analysis to find out the real reason for fraudulent activities. Banks and other industries must have valid reasons to not only justify the occurrence but also to dig in the root cause of any such fraudulent activity so that they can move on and help themselves from getting hold of anything that could worsen the scenario.

  • Blockchain will move things around

The FinTech industry is progressive enough and blockchain is certainly an integral part! In the upcoming years, there is an expectancy of a surge in funding and innovation to continue as both blockchain technology and the FinTech industry move from a largely retail focus to have more of institutional use. While we strongly believe that the use of blockchain technology will be an integral part of the financial institutions along with the advanced technology and operational infrastructure. Further, technology can take it forward with the usage of cryptocurrency, which is highly valued and used across many industries, though primarily in terms of banking.

  • Cyber Security will be one of the top risk facing financial institutions

Cyber threats are one of the most unlikely events financial institutions may ever dream of! In a global survey, 69% of financial services ‘ CEOs reported that they are either somewhat or extremely concerned about cyber threats, compared to 61% of CEOs across all the sectors. Though we cannot find a possible change too early due to the following factors restricting the entire growth bubble-

  • Use of third party vendors
  • Rapidly evolving, sophisticated and extremely complex technologies at work
  • Cross border data exchanges
  • The elevated usage of mobile technologies by the customers, including the exponentially growing popularity of internet of things
  • Cross border information security threats

Cybersecurity, therefore, is one of the biggest factors impacting the growth and letting the industries rethink their future strategies and other aspects to b kept in consideration.

  • Digital will be the front focus all over again!

Digital was once a wave and currently, it’s the new normal! Internet earlier brought many businesses alive, which were adapted widely, made large investments and drove some unprecedented advancements in efficiency. Today’s digital transformations have an altogether different outlook for the financial industry bringing higher profits, operational efficiency, ease of payments along with the swift options in terms of financial security and of course a highly effective and useful analysis with the help of big data and analytics. Digital transformation is the new mainstream business having a more sorted approach towards institutional areas such as capital markets and commercial banking.

Loyalty is dynamically widespread and nothing else could ever overpower the perks of having loyal customer. Loyalty program in the financial industry isn’t an easy nut to crack. After all, it’s all about trust and how well you manage the risk factors keeping your customers in line. Loyalty is going to pave a smarter and better path for the financial industry, letting their customers experience great perks and rewards on either transacting from the credit/debit cards or choosing net banking in the first place. It can further build-up to increased efficiency and a customer base who completely put their trust in a particular bank. Loyalty programs are highly adaptable and dependable not only for the customers but for the program owners too!

The waves of disruption will continue to fight against the financial services in 2020 and years ahead! Banks and other financial institutions will be willing to innovate and rapidly improve their overall customer experience, stay on the top of regulatory changes and further build stronger ties with the technology partners, reaching the success ladder smoothly.

Still, confused where to start? Find the right finance software development company to fit into your curriculum. Well, in other cases you can also go for a custom software development company to help you find the right solution for your business requirements.