FinTech is going to explode next year, with several new solutions hitting the market, Ecosystm, the tech research firm, suggests in a new report.
“FinTech is poised to have a much greater impact in 2020 than many people realize,” said Paul Gestro, report co-author and principal adviser at Ecosystm. “As well as improving the experience for existing customers, it will also drive the induction of many currently unbanked people into the mainstream economy.”
The new report highlighted five trends to look out for in the next 12 months.
Firstly, Gestro suggested that RegTech will become a focus even more as companies around the world recognize the benefit of tech solutions automating their regulatory compliance.
That is in line with RegTech Analyst’s own research that has seen RegTech investment grow annually from $923.4m in 2014 to $4.48bn in 2018, increasing to a massive $6.53bn in the first three quarters of 2019.
A second trend to look out for, according to the Ecosystm report is how FinTech will play a bigger role in bringing more financial equality to underbanked and underserved regions of the world as well as reducing the gender gap.
FinTech Global has noted this trend in the past too, with investors and FinTech companies setting up shop in Asia, Africa and Latin America over the past few years.
Thirdly, Ecoystm mentioned that Asia will continue to be a huge receiver of FinTech investments.
Fourth, Ecosystm argued that banks will drive a lot of investment in the sector through investments in artificial intelligence (AI), robotic process automation and cybersecurity.
Speaking of, the final trend the researchers noticed was that AI will continue to grow in importance in 2020, with big data and automation being expected to play even bigger roles.
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