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In the recently over 2019, the fintech industry has bloomed all over the world, changing the environment in various sectors. Experts’ predictions continue to be strongly positive for the upcoming year, with growth rate expectancy of at least 24.8%, making fintech a highly attractive and competitive space for investors and new companies. Our research shows that it will be enhanced customer service, disruptive technologies, new payment options and regtech expansion that will characterize the upcoming year for the fintech industry.
Regtech or Regulatory Technology is mainly concerned with integrating IT solutions in order to improve the regulatory processes related to financial services, making them more convenient. Currently, innovative companies in finance and government entities are uniting in order to take advantage on digital technology innovations. Such collaborative measures facilitate the gradual shift towards more digital and innovative government approaches to finance. Making fundamental improvements to the legal framework of fintech will help decrease the skepticism and create favorable conditions for the development of the industry. The complexity of the existing regulatory measures must not become a limiting factor for fintech growth but reinforce order in a holistic and systematic manner. Innovative regtech solutions will be aimed at the simplification of compliance and reporting requirements, giving fintechs more freedom and air.
We are also expected to continue witnessing the expansion of AI (artificial intelligence), machine learning and blockchain technologies that are making prior unseen solutions possible and widely available. Past couple of years have brought along various developments that have had a positive impact on customer services and operational procedures for fintech businesses. AI will continue to bring fundamental changes to customer care optimization and monitoring and analysis of operation. At the same time, blockchain will continue to be relevant for data protection, cybersecurity, trade finance etc., reinforcing confidentiality and upgrading resource distribution.
Fintech continues to be concerned with user experience, applying all possible efforts to improve it. Newly introduced solutions let private and corporate clients to use digital banking solutions that make business operation and personal finance quicker, more convenient and customer centered. While startups remain more advanced in emerging tech, it is anticipated that traditional banking institutions will also take advantage of open banking developments, raising the quality of client relationship management.
More than anything else, fintech has brought along unseen opportunities, such as contactless and mobile solutions for everyday payments. We might soon expect the integration of instant digital payments that make customer experience much more seamless. Among the technologies that will continue to advance in 2020 is SEPA Instant Payments solution that might be subject to improvements related to transaction limits and round-the-clock service.
Overall, 2020 is expected to become the year of continuous change and growth, empowering customers all over the world with new fintech solutions and upgrading the IT sector.