# Major FinTech Trends 2020: Which Will Bring You A Golden Ticket?
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2020-01-27
Category: TECHNOLOGY
Category URL: https://financedigest.com/category/technology
Meta Title: Embracing FinTech Trends: Intelligent Automation, Big Data
Meta Description: Stay ahead with FinTech trends: Intelligent Automation, Big Data, and Blockchain. Harness potential with automated decision-making, smarter analytics, and
URL: https://financedigest.com/major-fintech-trends-2020-which-will-bring-you-a-golden-ticket-2html

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**By Hugh Simpson** **Global Solution Leader, Data, Fintech & Financial services Vertical Lead at Ciklum**

It’s been 32 years since [London’s “Big Bang”](https://www.investopedia.com/terms/b/bigbang.asp) brought all-electronic trading to global stock markets. Today, technology continues to dominate finance.

Even though human decision-making will always evaluate the definitive difference between success and failure, FinTech developments are breaking down barriers and reducing the ingrained advantages the biggest firms used to hold. Here are some of the key trends to watch in your quest to harness FinTech’s potential.

[**Intelligent Automation**](https://www.financedigest.com/why-intelligent-automation-should-be-a-top-priority-for-enterprises-in-2022.html "Why Intelligent Automation should be a top priority for enterprises in 2022")

Even the most hardened financial market traders are ultimately vulnerable to the human limitations of concentration and emotion. Look for more and more [companies to emphasise fully automated investment](https://www.financedigest.com/more-companies-investing-heavily-in-business-services-software.html "More Companies Investing Heavily In Business Services Software") and trading decision-making, particularly in managing funds. Perhaps the most interesting factor to track is the increased power and value of experts who write algorithms used by such robo-advisors.

As FinTech operations continue to evolve, technical advancements will cover more [traditional banking](https://www.financedigest.com/digital-banking-traditional-banks-vs-fintech-providers.html "Digital banking: Traditional banks vs. fintech providers") functions. To compete in this automated industry, the financial [sector](https://www.financedigest.com/time-to-act-as-cybercriminals-hot-on-the-heels-of-finance-sector.html "Time to act as cybercriminals hot on the heels of finance sector") should build the right mix of talent and embrace the new risk culture.

[**Big Data**](https://www.financedigest.com/marine-big-data-market-to-expand-at-cagr-of-21-5-during-forecast-period-tmr-insights.html "Marine Big Data Market to Expand at CAGR of 21.5% During Forecast Period – TMR Insights")

Big Data refers not just to the sheer quantity of data that’s now available, but also to technology that fosters more incisive analysis of patterns in that data. It also involves the increasing availability of access to this processing and analysis on a “pay-per-use” basis rather than requiring a huge up-front investment. That puts smarter decision-making in more investors’ hands.

According to a 2019 study by [IDC](https://www.idc.com/getdoc.jsp?containerId=IDC_P33195), the worldwide revenue for Big Data analytics is expected to hit $260 billion by 2022. In 2019, the [projected numbers were expected to reach $166 billion](https://www.financedigest.com/electric-kick-scooter-market-is-projected-to-reach-6-5-billion-by-2031-and-estimated-to-grow-at-11-5-cagr-between-2021-and-2031.html "Electric Kick Scooter Market is Projected to Reach .5 billion by 2031, And estimated to grow at 11.5% CAGR between 2021 and 2031"), up 11.7% over 2017.

As [_Financial Times_](https://www.fintechnews.org/big-data-in-banking-all-that-you-should-know/) writer [Kamalika Some](https://www.analyticsinsight.net/author/kamalika/) notes:

“Banking is an [industry](https://www.financedigest.com/enabling-decision-making-success-in-the-banking-industry-3-considerations.html "Enabling decision-making success in the banking industry – 3 considerations") which generates data on each step, and industry experts believe that the amount of data generated each second will grow 700% by 2020.”

**_A 2019 survey by_** [**_Oracle_**](http://www.oracle.com/us/industries/oracle-era-ready-anything-2969053.pdf) **_offers some illuminating insights when it comes to Big Data impact on the financial services as it relates to opportunities in providing individualised solutions:_**

**60% – Leverage** [customer behavioural data to make the right offer at the right time](https://www.financedigest.com/why-now-is-the-time-for-banks-to-use-their-data-to-support-customers.html "Why now is the time for banks to use their data to support customers")

**47% – Improve the cross-channel customer [experience](https://www.financedigest.com/solving-the-customer-experience-conundrum-how-fs-organisations-can-use-data-to-level-up.html "Solving the customer experience conundrum: How FS organisations can use data to level up") to take the customer off the market as quickly as possible**

**_40% – Frictionless service at a lower cost_**

**_37% – Enablement of flexible product/service bundling_**

**37% – Maximise use of [social media](https://www.financedigest.com/elon-musk-goes-viral-on-chinese-social-media-with-ancient-poem-post.html "Elon Musk goes viral on Chinese social media with ancient poem post") to connect with customers on an individual level**

**How can the financial sector increase customer intelligence?**

- Collect and manage Big Data to get a 360-degree view of each customer.
- Work out one-to-one targeting and personalised offers in real-time.
- Leverage predictive analytics to detect fraud and reduce business risks.
- Personalise retention offers and achieve greater [customer loyalty](https://www.financedigest.com/the-problem-with-measuring-customer-loyalty-and-how-to-overcome-it.html "The problem with measuring customer loyalty; and how to overcome it").

**Blockchain**

Blockchain has already disrupted the payment industry, and 2020 will see this [technology become commonplace across the financial sector](https://www.financedigest.com/the-technologies-set-to-boost-the-finance-sector-in-2022.html "The technologies set to boost the finance sector in 2022"). Blockchain will launch a more efficient, secure experience. In fact, the underlying blockchain concept is expected to show off its muscle in FinTech. Deployment of blockchain in Fintech will spark game-changing potential for ultra-secure payments and transactions without the need for intermediaries and their often-exorbitant fee structure.

**A recent World Economic Forum report predicts that by 2027, 10% of GDP will be stored on** [blockchains or blockchain-related technology](https://www.financedigest.com/how-blockchain-technology-can-help-the-fashion-industry-make-verifiable-green-claims.html "How Blockchain Technology Can Help the Fashion Industry Make Verifiable Green Claims")

**By 2025, 58% of respondents expect this [tipping point](https://www.financedigest.com/are-we-at-a-digitise-or-die-tipping-point-in-the-telco-space.html "Are we at a ‘digitise or die’ tipping point in the telco space?") to have occurred.**

“Unlike other traditional businesses, the banking and finance industries don’t need to introduce radical transformation to their processes for adopting blockchain technology,” notes blockchain expert [Dr Ahmed Banafa](https://www.bbvaopenmind.com/en/authors/ahmed-banafa/).  “After it was successfully applied for the cryptocurrency, financial institutions begin seriously considering blockchain adoption for traditional [banking](https://www.financedigest.com/stellantis-reshuffles-european-financing-operations-through-new-jvs-with-banks.html "Stellantis reshuffles European financing operations through new JVs with banks") operations.”

A [PWC report](https://www.pwc.com/gx/en/industries/financial-services/assets/pwc-global-fintech-report-2017.pdf) predicts 77 percent of financial institutions will adopt some form of blockchain technology by 2020. In addition, a recent [study](https://www.aithority.com/guest-authors/Blockchain-technology-in-the-future-7-predictions-for-2020/) revealed “the banking industry will derive $1 billion of business value from the use of blockchain-based cryptocurrencies by 2020.”

With the growing [investment and enthusiasm around](https://www.financedigest.com/ford-to-invest-around-300-million-to-build-electric-car-parts-at-uk-plant.html "Ford to invest around 0 million to build electric car parts at UK plant") blockchain, digitally mature companies cannot afford to be left behind. With so much at stake, companies must start learning, testing and implementing blockchain technology. Here are a few ways it may transform finance and banking:

- Reduce fraud
- [Automate trading processes](https://www.financedigest.com/what-businesses-can-achieve-with-microsofts-full-suite-of-process-automation-tools.html "What businesses can achieve with Microsoft’s full suite of process automation tools")
- KYC  (Know Your Customer) – independent verification of the client
- Smart Contracts
- Secure payment processing

**Mainstream Acceptance**

Personal accounting and tax preparation software have already moved into the mainstream. Until recently, the concept of using tech tools to research, analyse, and execute investment decisions has been perceived to be strictly for Early Adopters. However, emerging data shows Fintech services are fast becoming the norm.

**Consumers and FinTech**

As Global FinTech Adoption Index 2019 reports:

96% of [global consumers](https://www.financedigest.com/top-5-players-to-account-for-45-of-global-consumer-appliance-coatings-market-share-through-2031.html "Top 5 Players to Account for 45% of Global Consumer Appliance Coatings Market Share Through 2031") are aware of at least one money transfer and payment FinTech service

33% of global [consumers often use a fintech services other than their main bank](https://www.financedigest.com/what-vrps-should-do-to-improve-the-experiences-of-open-banking-consumers.html "What VRPs should do to improve the experiences of Open Banking consumers") first

74% of global consumers use a money transfer and payments FinTech service

48% of [global consumers use an insurance](https://www.financedigest.com/how-the-global-insurance-market-will-keep-pace-with-evolving-risks-through-data-analytics-and-technology.html "How the global insurance market will keep pace with evolving risks, through data, analytics and technology") FinTech service

The report’s author, Gary Hwa of EY Global Financial Services, notes:

“Looking ahead, newly developing ecosystems will encourage industry convergence as FinTech challengers continue to mature, as more incumbents offer credible FinTech services, and as non-financial [services companies](https://www.financedigest.com/why-financial-services-companies-should-consider-rfps-in-their-digital-transformation-strategies.html "Why financial services companies should consider RFPs in their digital transformation strategies") expand their customer offerings into financial services.”

**Sharing Economy**

While the sharing economy covers all manner of transactions between individuals, it’s investment and lending that may super-charge the FinTech world. The potential is there to bring small investors and growing businesses together with an alternative to the traditional stock and bond issues that are dominated by major [investment banks](https://www.financedigest.com/investment-banks-trading-revenue-likely-to-shrink-barclays-boss-says.html "Investment banks’ trading revenue likely to shrink, Barclays boss says"). There’s even talk that — subject to regulatory issues — peer-to-peer lending could extend to consumer finance such as mortgages.

According to Marketwatch, the global peer-to-peer lending market was valued at $34.2 billion in 2018 and is expected to hit $589 billion by 2025 with a compound annual growth rate of 50 percent.

Major FinTech players in the sharing economy include [Lending Club](http://www.lendingclub.com/home.action), Zopa, [Prosper](http://www.prosper.com/) and [SmartyPig](http://www.smartypig.com/).

**The sharing economy is estimated to grow to $335 billion by 2025**

**The Consequences**

As projected [FinTech trends](https://www.financedigest.com/fintech-trends-in-2022-whats-next-for-crypto-and-esg.html "Fintech trends in 2022: what’s next for crypto and ESG ") grow, new challenges and opportunities will open. As Hwa notes:

“FinTech has redefined the rules of the game in financial services. What was considered new and disruptive in 2015 has since become a prerequisite for all players. With so many participants now offering similar services, each company must strive to differentiate itself to attract and retain customers, whether by brand, price or execution.

Security will continue to rank as the principal challenge even as rogue nations begin to hint at future cyber-warfare. The rise of FinTech as an economic disruptor – especially automation – will, no doubt, spur increased regulatory scrutiny as bureaucracy tries to catch up with innovation.

However, the growth of FinTech has proven equal to these challenges as emerging tech continues to outpace cyber-enemies and [collaborate successfully](https://www.financedigest.com/a-winning-team-how-corporate-champions-can-drive-successful-collaborations.html "A winning team: how ‘corporate champions’ can drive successful collaborations  ") with regulators.

If you’re looking to make your company’s financial services more efficient, [Ciklum](https://www.ciklum.com/contact-us/)’s specialists can guide you in recognizing and developing the “Golden Ticket” that’s right for you.


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