Fintech innovations provide corporations like yours with enhanced communication, improved efficiency, and a more profitable bottom line for your e-commerce.
Keeping track of these innovations and upgrades is critical for your business success, which is why we’ve compiled six of the essential fintech trends for 2020. These changes will exponentially transform the e-commerce marketplace, so don’t neglect their benefits.
Regtech Will Be Huge in 2020
Compliance tasks take up around 15 percent of the workforce in the financial industry, which is a severe waste of labor. Using an intelligent and highly-trained professional to verify information has become obsolete, which is why regtech will become even more critical in 2020, particularly for the fast-paced e-commerce world.
Expect a growing number of compliance technology in the financial sector, programs that streamline the lending process and ease the burden on overworked financial workers. Expect a rise of at least 500 percent in 2020, both in implementation and in research towards new regtech concepts in e-commerce.
Increased Millennial Presence
Millennials are finally coming into their own, financially, and will continue to be an increased presence throughout the financial market. While only 16 percent of millennials have saved at least $100,000, a focused number have saved even higher levels. As a result, fintech concepts will expand to meet their needs and transform the marketplace in a multitude of ways.
For example, many millennials use the internet either full-time freelance or have a side hustle that they use to make extra cash with e-commerce methods. New fintech concepts, such as automated investment or gig tracking software, could help these hustling millennials work harder than ever and enhance their online financial profile. And older investors will follow suit by implementing these ideas in their business portfolio.
Improved Capital Access for Small Firms
Smaller business firms often struggle to get access to high-quality sources of capital, particularly if they are focused so heavily on online transactions and don’t have a brick and mortar shop. Thankfully, new advances in fintech will make this process more accessible in 2020. These digital lending platforms will create appropriately-sized loans that help smaller firms succeed more easily.
For example, Allied Legal Solutions recently launched Fundafi, a site that focuses specifically on small businesses. The potential success of this site is likely to lead to an increased focus on smaller or startup firms, particularly those that utilize e-commerce buying and selling methods.
Innovations in E-Commerce Capital Markets
A growing interest in e-commerce capital markets could change the development path of many types of fintech concepts. The heart of this process is digitalization or turning as much of the banking and lending process digital as possible. The most significant benefit for the capital market will be an increased focus on automation and streamlining the banking process.
Other innovations will include increased cybersecurity, such as enhanced firewall protocols and stronger anti-hacking measures. The capital market is particularly prone to these attacks due to the large volume of cash involved. Minimizing this risk requires new and bold innovations in fintech that are likely to be implemented throughout 2020.
Blockchain Will Continue to Rise
The blockchain revolution is real, and the world of e-commerce fintech is reacting to it in a variety of ways. Expect an increasing focus on cryptocurrency throughout 2020 – the bust of some currencies is real, but they aren’t going away any time soon. However, you should also expect a growing number of institutions to start integrating blockchain beyond cryptocurrency.
For example, the unique stability and security of blockchain connections appeal to many financial institutions. Rather than rely on copying data – which may be hacked or corrupted during the transfer – banks, lenders, and investment firms can directly send the data to their clients. These benefits are critical for e-commerce businesses that rely on online cash transfers.
Conversational Banking Will Become More Integrated
A growing number of fintech specialists believe that automated conversational banking will become even more prominent in 2020. While this technology has been available for many years, increased AI effectiveness and improved conversational innovations have made authentic communication more comfortable than ever in the financial sector.
The methods of conversational banking will vary depending on the institution. For example, e-mail communication utilizes various conversational user interfaces to allow financial institutions to set up vocabulary databases and communication guidelines that create automated replies.
Learning More About These Trends
The ever-expanding world of fintech continues to change on a nearly daily basis and will provide you and your business with the chance to become more financially successful. And these trends, while essential and critical to track, are just the tip of the iceberg when it comes to upcoming fintech concepts. Make sure to pay special attention to these changes to ensure that you aren’t left behind by your competitors along the way.