People want some targets that guide them, and real numbers are perpetually a solid anchor. That is why 2020 is a massive container for achievements on all rates, including the Fintech market, and that's last year in 2019. Twelve thrilling months are ahead of us in a competitive journey, not without challenges, but certainly backed by a lot of excitement, and stress. The determination to standardize and control the vast open banking boom we have been engaged in since about five years ago.
With many years of transaction, automated, and open information technologies, the industry has already decreed the need for controlling the broad range of possibilities and services. The move from early followers to the worldwide market is essential because of the size of consumers in the less conventional banking services regions like Latin America and Asia, which are very soon and spectacularly going to happen.
1. The year of' Regtech
It is a fantastic year for this industry's "regtech" arm, the central segment opening this pattern list: the' conformity' activities are projected to be nearly 15 percent of the overall financial sector. This percentage will increase substantially due to the rise in institutional regulatory interest other than to the rising number of' Regtech ' solutions that require major financial institutions to introduce software rather than hiring additional workers to these tasks. There are several start-ups and businesses of all sorts providing technological solutions to reduce costs and cycles. Spanning from legal assessments and verifications for enforcement, risk management, payment tracking to the areas of ‘Know-Your-Clients’ (KYC), and ‘Anti-Money Laundering’ Services, which also offer an ROI, which can arise for large companies within months of its acceptance.
Rabobank, a major Netherlands-based company, has established a risk reduction ' Regtech ' system for its Compliance department, increasing conformance measures between ten to two minutes. Many experts forecast that' Regtech ' spending in the financial services industry would grow by 400% by 2020-not by poor print-from $11billion in 2017 to over $55 billion in 2020.
2. Robotic Process Automation (RPA)
RPA or Robotic Process Automation is essentially a program that utilizes the same user design as a computer but eliminates human inefficiency, to manage repeated human operations. A bot could do a data entry function with Microsoft Excel (or other devices) and CRM technology from the business. RPA should help banks improve efficiency and avoid wasting time, especially if repetitive and easily reproducible activities are at stake.
3. Traditional banking
Let's begin with three bits of smashing statistics in this section: 65% prefer to send messages by contacting or writing emails; 63% are more prepared to buy and rent a product, if you have chatted with the company beforehand, and 81% are ready to do so. Artificial intelligence is already mature sufficiently for' Business to Customer' and satisfies them. Finally, a word-based operating system, unlike conventional graphical interfaces that involve layout, design, and implementation, can be modulated in real-time. There are also words, never better mentioned, that means maybe the next phase of the CUIs is to talk by speech, and Speech Banking is being addressed.
4. More extensive population adopting banking services
More substantial community use banking services use new technology and also calls for crack doors and be as accessible as possible. Throughout places like Spain, the UK, more than 1.5 million individuals still don't have a financial service and even a bank account. Fintech's businesses are being exported, and shakers are becoming more and more people worldwide.
The main distinction between obtaining or not obtaining health, education, or any other essential services may mean the failure to use financial services far beyond instances in which this constitutes the right personal choice. Financial inclusion has been tiny in large areas such as Latin America and, above all, Asia, but due to cellular phones, it has been improving for several years now. The number of persons with shifting transaction accounts in sub-Saharan Africa, for instance, has tripled by the World Bank in just two years. Mobile payments were synthesized worldwide by more than $1 billion per day in 2017. Specialists expect that by 2020, this number would rise by 60 percent in Latin America and Africa, and therefore will leave the door open to online banking in these fields to millions.
5. The lesser use of real money
In Sweden, just 1% of cash transactions took place in 2016. Real money decreases individual companies do not accept cash in the blank, and over half claim that before 2025, they will stop receiving payment. The EU country with the most significant cashless transactions in the United Kingdom, with a total volume of 10.67 billion Euros spent in cashless transactions in 2017. This figure has fallen to 1.16 billion in Spain. The advent of even more straightforward payment systems, such as the contactless system provided by NFC devices, renders cash quickly out of reach. According to a study conducted in the UK, the latter is also the least prepared to pay all forms of fees, and the disabled are most often charged for public transport (91 percent of the total transactions), meat (53 percent) and books and magazines (49 percent).
6. The rapid evolution of open banking
Unstoppable open banking growth is linked to other patterns. The emergence of open banking, which is known by the customer as independence, has modified everything and continues to do so. Since its information is entirely controlled, so that exchanged between different companies, such as your company, the startup which helps them by apps through daily activities. As per a Deloitte survey, by 2019, several banks may have scrapped their old ways entirely, and some will have opted for micro-services and web technologies. It will increase their reliance on older systems. Over the next year, 25 percent of financial institutions will be using their specific API systems, and 40 percent will be fully updated on them. 28% will have their Big Data projects, and 22% of financial companies may have their artificial intelligence frameworks.