The last few years have seen tremendous innovation and technological advancement in the fintech industry. Innovative solutions such as mobile wallets, crowdfunding, and decentralized currencies made possible by technologies like blockchain are revolutionizing the financial service industry.

Today, consumers can conduct financial transactions at the comfort of their homes and resolve technical issues with AI-powered bots without human representatives. The ingenuity and creative vision of many of today’s fintech organizations are astounding.

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It’s no wonder so many fintech products have risen in prominence and popularity across the globe. A study by Ernst & Young found that at least 75% of global consumers have used one or two fintech service for payment. Research by Bluebird Global estimated that by 2020, 90% of mobile device owners in the world would have utilized at least one mobile payment service.

2020 promises to bring further upside and mainstream adoption of fintech products. This article explores fintech trends for 2020.

Artificial intelligence and robotics


Artificial intelligence (AI) and robotics have been hot topics for finance and tech companies in recent years. However, 2020 will see more fintech solutions that utilize AI and robotics to solve complex business problems, deliver a highly personalized experience, and mitigate financial risks.

Most analyses of banking trends and financial services suggest that AI is vital for fighting payments fraud. A lot of fintech companies are already using AI in fraud detection and prevention. Al can aid in identifying anomalous behaviors and flagging irregularities for human review.

As more financial transactions are conducted online, cybercrimes such as data breaches, identity theft, and hacking will continue to pose significant security threats. Thus, financial service providers will need to increase investments in AI and robotics.

Decentralized finance


One of the latest trends in banking technology and payment services is blockchain. In the not-too-distant future, conducting financial transactions with the aid of blockchain technologies will be way cheaper than using traditional financial platforms. In a distributed ledger system, any member of a group can participate in a transaction confirmation process, significantly reducing costs and the need for traditional intermediaries.

Within the next few years, most financial transactions and the profits they generate will go to the owners of blockchain platforms as traditional intermediaries’ roles diminish. As blockchain technology becomes more sophisticated, it could allow for easy transfer of physical and digital securities. Expect to see new categories of decentralized finance (DeFi) solutions on the market aimed at reducing costs and improving the quality of transactions.

Cloud computing


Many non-core business activities such as customer relationship management and human resources management have been moved to the cloud-based SaaS platform by most financial service providers. However, many institutions are also leveraging SaaS solutions and cloud-based storage for core financial services such as credit scoring, debt collection, financial reporting services, and consumer payments.

Part of these shifts can be attributed to the proliferation of low-cost data storage solutions and advanced cloud computing. It’s easier to manage data in the cloud, making it the best option for fintech organizations, especially startups who need to minimize costs and get up and running quickly. Today’s consumers expect a seamless cross-channel experience, with the costs of cloud-based data storage plummeting, there’s no doubt that cloud is the way forward.



Financial institutions are trusted gatekeepers and custodians of assets, thus are prone to security incidents. The World Economic Forum (WEF) noted in its 2018 report that financial crime was a trillion-dollar industry. Financial service providers face risks from many fronts, including vulnerabilities inherent in digitization and automation, growing transaction volumes, and cross-border financial and data integration. It’s no wonder why malicious attacks from foreign soil have been growing. Research suggests that threats from hackers and criminal syndicates could be a hindrance to fintech’s growth around the world.

The good news is that the same technologies that made financial networks vulnerable to cyber attacks are also the solution. Many leading organizations are already using AI and big data analytics to detect fraud, manage risk, and cybersecurity threats. With growing security threats, having a robust cybersecurity strategy is critical for every financial organization. The challenge, however, is making sure that safety does not come at the expense of business growth.

Regulation technology (RegTech)


There has been a significant increase in the use of analytics and other technologies by regulators in the last few years. With the growing threat of cybercrime, regulators want to know what financial organizations are up to and whether they are taking the right measures to combat threats.

Regulation technologies can help authorities actively monitor financial institutions and better design policies to tackle cyber threats. A lot of regulatory and compliance tasks are still completed in part or entirely by humans. It is expected that the adoption of regulation technologies by regulators and businesses will grow in the next few years.

IoT and big data analytics


With all the apps and personal finance tools available today, fintech companies have more access to data than ever before. This presents unprecedented opportunities to companies looking to harness the power of big data and provide today’s consumers with the services they demand.

Apart from computers and smart devices, everything from autonomous cars, drones, and robots are a huge source of data, providing organizations with even more capacity to capture richer data and improve business decision making.

Recent digital banking trends suggest that banks are collaborating with fintech companies to deliver more personalized services to consumers. Most consumers are well aware of the importance of data they create and many are willing to share personal information with financial service providers for the best deal. Whether it’s blockchain, IoT, cloud computing or AI and data analytics, each of these fintech emerging trends is critical to the continued success of the fintech industry. Following them helps financial institutions become more effective and cost-efficient at what they do.