Top 6 FinTech Trends to Watch in 2020

FinTech Trends to Watch in 2020

Fintech’s global transactions reached $22 billion in the first six months of 2019, compared to $31.2 billion in the same period in 2018, according to Accenture.

The analysis notes that despite the absence of such a large deal as Ant Finance raised $14 billion in May 2018, this was achieved. Discounts this ant deal, which means a 28% increase in fintech’s global investment, with significant growth in all places except China.

Revenues raised in the Asia-Pacific region, in particular, are alarming: Singapore’s $453 million is twice the same period in 2018, while Australia ($401 million) recorded a modest $401 million, three times the total investment in 2018.

This indicates that companies are paying attention to the fact that consumers turn to fintech services. Fintec’s services will be better as we learn more about data-driven financial models.

1. Mobile Financial Services Are Getting Bigger and Better

According to McKinsey, 80% of financial institutions worldwide have established fintech partnerships.

This means that Fintech disruptors are receiving the financial and reputation support they need to provide consumers with more advanced APIs, primarily by boosting mobile financial services such as Portfolios, Payments, Remittances, and even P2P loans.

In this regard, a key step forward in 2019 is the ambitious expansion of Ant Finance, the subsidiary Fintec of Chinese Internet giant Alibaba, to a wider range of Asia, Europe, and the United States.

First, it boosted Pakistan’s first blockchain-driven cross-border remittance service, then acquired London-based number one global payment company and signed an agreement to allow thousands of local retailers in the United States to trade their e-commerce cow Alipay.

Mobile financial services will become bigger not only for their convenience but also because big names join the fun.

2. Blockchain Remains an Innovative Technology that is Difficult to Use

Fintech players have long defended many of the advantages of blockchain. It’s easy to understand why: Blockchain offers unprecedented security and transparency.

In the payments area, this means that a business model with an ideal blockchain core will have the following advantages:

Decentralized distributed node means high availability, less downtime, and guaranteed recovery points; immutability means the integrity of information; cryptography closes interference completely unnecessary.

Ant Finance’s presence in Pakistan is just one of the blockchain-based payment and remittance transactions, and we see no sign of a slowdown, especially when 53% of respondents in Deloitte’s Global Blockchain Survey 2019 say Blockchain technology has become their key priority, 10% more than 2018.

We expect a year of progress as governments around the world (Singapore, Canada, United Arab Emirates, and Saudi Arabia) provide more support in the payments regulatory framework.

However, implementation and widespread adoption will continue to be hampered by costs.

Until the normalization of Blockchain technology, companies are willing to waste budgets dedicated to upgrading existing infrastructure (Blockchain requires massive if not all), remains a technology with great potential but limited use.

3. Impact Investments to See Record Growth

In short, impact investments produce not only tax benefits but also social and environmental impacts.

FinTech transactions will be made for sustainability, as global investments will “force” local authorities to demand companies to demonstrate that their countries are making sustainable progress.

By 2025, three-quarters of the world’s workers will be millennial workers born between the early 1980s and the late 1990s.

The World Data Lab predicts that millennials will outnumber other generations between 2020 and 2035.

With this in mind and the fact that “82% of millennials surveyed agree that banks provide banking services via mobile devices is beneficial or very beneficial to banks”

We predict record growth in influential investments as fintech and financial services take advantage of the enormous expense. Millennials and focus on satisfying your sustainability preferences.

4. Pay Attention to Asia’s Digital “Banks”

With fintech development creating new land every year, financial services are no longer available only in local physical banks.

In recent years, certain trends in bank branches remain relevant, especially for the previous generation, where the rise of the younger and dynamic generation requires that financial solutions be completely mobile.

We see a breakthrough in Asia, with digital banking being the hottest service in 2020.

For now, 2019 is a year of preparation: the Malaysian government announced at the time of its annual budget presentation that applications for the Virtual Bank Framework in Malaysia will be open in the first half of 2020.

Incredibly, before the announcement, digital payment giants and at least 4 banks together seized and increased interest.

Then came the AirAsia Financial Services big pay division as a challenging “bank”, offering remittances out of retail payment solutions. It already offers services offered by many banks, such as operating prepaid credit cards.

5. Implement AI, Automation, and Voice Technologies on the Plateau

After all, AI, automation and voice technologies have always been part of Fintech’s presentations. So how do we come to this conclusion?

The first reason is that companies may not want faster cross-border payments if they are made at the expense of security and liquidity. After all, the need drives the growth of technology.

But this is the second point that we want to highlight.

According to an article by McKinsey, there is a huge challenge in terms of “a lot of training data and the difficulty of generalization algorithms.”

What this means is that the health industry, for example, in Fintech may not work.

There are too many different regulations, cultures, languages that need to be resolved, priorities will be a big headache: How will AI address the potential costs of risk markets versus entry costs?

Along with the devastation caused by the US-China war and the continuing uncertainty in technology (Huawei, AI, and 5G services), we dare say that the development of AI will progress significantly in 2020, but implementation will run into obstacles.

6. Stricter Fintech Regulation

Finally, the financial services industry is one of the most regulated industries, but it remains one of the riskiest cybercrime. It’s not a day without a headline to attack financial irregularities against cybercriminals.

This means that the work of institutions responsible for protecting digital financial transactions has been reduced. Governments around the world could introduce new laws and regulations to protect financial companies and consumers.


Ever since emerging trends in financial services sparked to life five years ago, Fintech has enjoyed a boom like no other sector. We believe it will continue to gain traction, and navigate a sea of potential and challenges with great consumer, industrial and regulatory support.

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