FinTech app development: 2019’s hottest trends in banking and FinTech industry and some turning points!
The birth and growth of financial technology evolved chiefly over the last ten years.
So as we move ahead, we are starting to see the signs for the next decade, fintech will display new style. It is going to be portable and ubiquitous as it moves to the background and centralizes into one place where our money is managed for us.
Fintech has since become a household name in the year 2019. It has gained a transformation that came with immense growth in investment: from $2 billion in 2010 to over $50 billion in venture capital in 2018 and on-pace for $30 billion+ this year.
There have been predictions made along the way about the banks that will go out of business and big techs will get into consumer finance. Small service providers will unbundle all of customer finance. Banks and big fintechs will bolt up startups and strengthen the sector. Startups can grow into their own banks.
In 2019, here is what happened: the fintech is heavily verticalized, recreating the offline branches of financial services by bringing them online and injecting capabilities. However, the next decade seems different. The early signs emerging from ignored spaces which imply that financial services in the next decade will be:
- Portable and interoperable
- More universal and available
- Move to the background
- Incorporate into a few places and steer on ‘autopilot
Let’s discuss a few defining moments in the fintech sector in the year 2019
You should read this before going for FinTech app development or eWallet app development in 2020.
The Fintech industry experiences moments which assist as directions for future entrepreneurs and investors regarding profit from the experience of the past. The recent The Finovate Europe 2019 trade show, held in London, it presented a stage for 64 global fintech companies to showcase their new products, tools, and ideas in a seven-minute live demo to the 1,000+ attendees, to attract bank clients and investors.
In this blog, we are sharing the trends and highlighted some Financial Insights profiles of the upcoming stars and emerging technologies.
⇒ London will still remain an important global fintech hub
The summit had a bold statement by David Birch, Global Ambassador at Consult Hyperion. He declared that London will continue to be the world’s first core for financial-related technology start-ups.
There is no other entre in the world that combines capital, skills, and technology while providing such a forward-looking regulatory environment. Anna Wallace, the UK Financial Conduct Authority (FCA) described how the FCA can support developing technologies, such as blockchain, to comply with any applicable regulations via sandboxes where new tools and models can be tested in a safe environment.
The global innovation sandbox is built for companies seeking permission to test their products in a controlled environment and contains regulators from 29 jurisdictions. The systematic approach towards financial regulation in the UK and the EU will set a global trend in banking regulation that can help to increase the transparency, flexibility, and accessibility of financial services.
⇒ Partnering in ecosystems and platforms helps to expand portfolios and drive down costs
People have been buzzing around customer experience. But at the same time, there is a realization that many of today’s business-to-customer providers of devices for financial advice, budgeting help, multi-banking, and others may not be able to charge more for these type of personal finance management offerings in the future.
Many banks have started to offer these services to their customers free of charge, often in assistance with a fintech, as a way of retaining customers. Those with the best customer experience and most enhanced data will be the ones to retain existing business and win new customers.
⇒ It is more accessible to offer technology solutions to banks than to build a scaled-up rival offering
In Europe, the year, there were only 6 out of 64 fintechs providing direct services to consumers. This proves that original hype about fintech start-up firms uprooting banks has disappeared, as they now understand it takes scale, and an experience to surmount regulatory and other barriers to entry, to replace a conventional bank.
Collaboration instead of competition is usually the name of the sport these days. After all, it is more comfortable to offer technology solutions to banks than to build a scaled-up rival offering.
⇒ Open Banking Drives Fintech in 2019
A huge number of fintech associates surveyed AI and open banking APIs as important innovation enablers. There is a lot of attention was provided to conversational interfaces like chatbots and digital voice assistants. The voice system is transforming into a significant digital interface for interaction between customers, e-commerce providers, and fintech services providers. This generates an opportunity for “bigtech” merchants like Amazon, Google, Apple to become a chief banking touchpoint and an approach point to the open ecosystem.
⇒ Shifting Core Banking to the Cloud
Five Degrees is an award-winning fintech company established in 2010. It extends FIs a modular digital core banking stage expanded in the cloud or so-called “bank as a service.” It is an open banking marketplace of third-party products connecting banks and fintechs in a service-orientated ecosystem. This enables banks to afford and present the latest innovations to their customers more swiftly and smoothly by “plugging them in.”
Turning points and achievements for the fintech companies in 2019
The development of quantum computing, fintech regulation, diversification of cryptocurrency and investment in digital change- there have been different predictions in fintech sector that came true in 2019. Let’s have a look at some of them.
- Expansion of decentralized payment apps
- Diversification of cryptocurrency
- Algorithms to check consumers for non-traditional lenders
- NFC payment chips
- RegTech to assist banks and lenders comply with the regulation
- Digital-only banks persist
- Large investments in digital transformation
In 2019, the global spend on digital transformation, to increase productivity and security, is foreseen to reach US$1.18 trillion by the end of the year. This is a huge rise of 17.9 % as compared to 2017.
As foretold, the most booming sector investment in the financial sector, which is prophesied to have a combined annual growth rate of 20.4% between 2017 and 2022.
Today, we are observing that the world is getting more and more digital, people access their financial services through one universal hub. When the open data and protocols become the standard, we need to check out which business models will help the companies to earn profits in the coming year. Though we cannot make any generalized predictions for fintech companies in 2020, each company must have their own selling point and innovations to make a mark in the new year.
Come what may, the e-wallets will still continue to win the hearts of customers and the businessmen looking for a venture can get down into this business with our amazing white label solutions for mobile wallets.
Stay tuned to read the fintech trends in 2020 and to know which company touches the heights in the fintech market.
Connect with us to know more about the e-wallet and fintech app development solutions.
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