IT technologies are developing at a tremendous speed, but payment trends are changing the fastest. Banks introduced contactless payments. There are systems that allow conducting multi-currency transactions, as well as working with international asset transfers. In this article, we will talk about fintech trends 2020. It became obvious that most of the traditional operations involving bank employees soon become unnecessary. In the DataArt blog, curious readers will find even more information about the technologies of the future. And now we turn to discussing the current changes in fintech topics.
Table of Contents
Digital Banking and Neobanks
For most users of banking services, the absence of a physical office used to be and remains a wake-up call. If there is no office, there is nowhere to turn for help in case of problems. But the latest trends are such that the physical representation of the bank has become an extra link. The whole system works over the Internet. It also has extra benefits:
• Banking operations are available around the clock;
• You can make transactions from anywhere;
• Transactions between counterparties are faster;
• Commissions are reduced.
Modern banks are introducing the following equipment and technologies. This is cheaper, since you do not need to maintain an office and a large staff of employees:
• Chat bots;
• Mobile POS-terminals;
• Online underwriting systems.
All this helps automatically, or without the participation of a bank employee. By the client to process user requests in real time. The difference between digital banks and neobanks is that digital banks have physical offices. Neobanks work 100% online. You can contact technical support onlyy. The plain risk of neobanks is compensated by the following advantages:
• The client sees the balance change in real time;
• It is possible to keep records of funds and transactions without commissions;
• You can make global payments and P2P transfers and without commissions;
• It is possible to issue a contactless plastic MasterCard card without transaction fees;
• Clients can buy and exchange Bitcoins, Ethereum and other cryptocurrencies.
Blockchain
All countries are introducing Blockchain technology into their financial sector. More than 70% of these banks and financial institutions are located in the United States and China. Using the blockchain with fintech brings the entire system to a qualitatively new level of security. Basic principles of technology:
• Decentralization;
• Inability to erase or replace transactions;
• Storing complete information on all network nodes;
• Independent verification of new blocks by network users.
This approach is still partially used, since state banks are not ready to abandon the traditional centralized management system. But the Blockchain completely excludes fraud with transactions (only an attack with a power of more than 51% of the entire network can hack the network, which is almost impossible). Transactions can be carried out automatically, without the participation of bank employees. It means that the speed of work greatly increases. Using smart contracts, you can set the necessary conditions. Thus, transactions will be made not only without a bank employee, but also without the participation of the client.
AI-based solutions
The introduction of artificial intelligence has reduced costs in the financial sector by more than 20%. This is not only about online consultations, which are now carried out by bots instead of people. Artificial intelligence is able to collect and analyze the actions of bank customers, offering them the best financial products and solutions in their situation. AI is also well established in the field of cybersecurity. The introduction of artificial intelligence into the system allows you to automatically correct errors that have been identified through penetration testing.
