RegTech Will Take Centre Stage in 2020
Ecosystm, the global technology research and advisory platform has just published a new report, ‘Ecosystm Predicts: The Top 5 Fintech Trends for 2020’, which highlights –
- RegTech will take centre stage
RegTech, will gain strong traction during 2020 as organisations come to understand how it can assist them with compliance. It has the potential to combat financial crime and reduce costly mistakes. The previous strategy of simply employing more people to undertake compliance is no longer sustainable and firms are keen to find a better way of tackling the challenge. The ROI on RegTech platforms is easy to identify and very compelling.
- Asia becomes ‘Middle Earth’
During 2018, venture capital-backed FinTech firms raised more than $US40 billion, and nearly half of this was in China alone. This will continue throughout Asia where FinTech newcomers will be well-positioned to disrupt incumbent financial institutions. The combination of relatively open government policies and a generally underdeveloped banking sector will see rapid FinTech-backed innovations in the banking and non-financial sectors throughout the Asian region.
- The rise of Artificial Intelligence
AI lies at the heart of most FinTech platforms and will continue to drive innovation in the sector. Being better able to make decisions about data and the automation of workflows will be top-of-mind objectives for finance firms during 2020. Closely related to AI is RPA (Robotic Process Automation) which will be deployed to transform the customer experience as well as integrate legacy systems with more innovative tools and services. AI will also be increasingly used in areas such as cybercrime detection and prevention where it can rapidly identify potential cases of fraud and flag them for further investigation.
- One for all and all for one
Increasing investments in FinTech platforms and services will play a significant role in achieving greater inclusion, especially in emerging economies, as well as reducing the gender gap when it comes to the adoption of financial services. This significant growth and an increasing ability for banks and other businesses to address previously untapped markets will drive huge capital inflow from Impact Investors who are keen to achieve a beneficial social result as well as a profitable return.
- The year of the banks
Increasingly, banks have been developing strategies in a range of related areas including AI, RPA and Cybersecurity. Next up is FinTech for better customer engagement and regulatory compliance.
The report's co-author Paul Gestro commented, “Our report clearly shows that 2020 will be a huge year for FinTech firms and the organisations that take advantage of their offerings. Making strategic decisions on FinTech adoption now will ensure financial services firms are well placed to benefit from the massive growth ahead.”