The year 2019 has almost come to a close. That means the new and emerging trends for 2020 will become apparent fairly soon. In the fintech industry, there sure several things to look forward to in the months ahead.
Identifying Crucial Fintech Trends
Innovative technologies will make their mark on the financial sector. The use of artificial intelligence and robo-advisors will only become more apparent as time progresses. However, there are also other options companies can explore. The following three fintech trends will transform finance as a whole.
The Cryptocurrency Impact
One of the fintech trends to make a global impact comes in the form of cryptocurrencies. Numerous financial institutions aim to provide crypto exposure to their customers. As these currencies operate without centralized oversight or government intervention, they provide a lot of potential use cases.
Volatility of bitcoin and altcoins should not be underestimated. This is part of what makes crypto such an exciting industry. Rest assured that these currencies will become more attractive among users who prefer financial privacy.
Partnerships Remain Crucial
Over the past few years, partnerships between banks and fintech companies have become the new normal. This is one of the existing fintech trends that will continue throughout 2020 and beyond. For banks, it is crucial to forge partnerships with companies capable of helping them enter the modern era of finance.
The big question is whether financial institutions can be saved. A fair few of them will continue to struggle, despite their best efforts. Without new strategies and collaborative efforts, some banks will lose their status. Others will step up their merger and acquisition game to remain ahead of the pack.
Revamping Online Trading
Over the years, one of the new fintech trends involves automated trading. More specifically, it utilizes algorithmic and low-latency technologies. On paper, this allows for executing trades automatically at the most opportune moment around the clock.
In reality, this method of trading is still a legal gray area. It is not illegal by default, but still raises plenty of questions. For novice traders, being able to copy other traders’ algorithms and investment moves can be a powerful solution. All of this will only work if computers running the scripts and algorithms don’t suffer from technical problems, however.