The year 2020 is full of surprises. For those who are currently fond of the financial industry, you might have realized the commencing of the fintech in every layer of the financial aspects. And there is no sign to stop that from proceeding.
According to Erbis the fintech software development trends of 2020 will also impact everything which has things to do with money.
Fintech takes place like a massive storm. There’s a sensible reason why conventional financial institutions worry about fintech startups. From the digital currency, banks to the digital payment solutions, more and more people turn to them rather than the conventional solutions. It is true that fintech has disrupted global financial services. But we cannot overlook the fact that some positive results are inevitable.
Regardless the pros and cons, let’s see these top six fintech software development trends objectively:
Digital banking is quickly rising
It is easy and simple to understand why many people are turning to the digital-only banking solution. Most of us have been familiar with virtual banking such as global payments, P2P money transfers, cryptocurrency exchanges, and many more. It is quick to notice that such a trend has been evergreen from year to year.
For those who are staying or working at home, there is no need for them to get out there to make payment at a brick-and-mortar bank. You know that in the conventional ways, you need to deal with some paperwork. Not to mention that you need to confirm your identity by submitting the copy of your ID.
However, here is the catch. Not all problems regarding online banking can be solved as it is. Meanwhile, in traditional banking, the users are able to go to the branch to ask directly to the customer support and get the things settled at the same time. In the year of 2020, the bank’s visits will drop 40% because of the digital-only banks. The tricky part comes when you are dealing with digital-only banks who don’t have physical addresses.
Blockchain in revolutionizing financial transactions
The blockchain uses have been more common than before. As we know, blockchain has made a huge change in the financial transactions worldwide.
China and the US are the leading countries of blockchain leverages. The blockchain has brought a lot of benefits for the businesses, institutions, and the end-users.
Statistics have shown that 70% of the unicorns have been looking into the online financial services to speed up the process and expand their business. The number of increasing adopters of blockchain wallets have also been looming. More and more financial services companies are increasing their investments to chase blockchain innovation.
Innovations in payment
The fintech software development companies like Erbis will get busier from time to time because there are more companies who want to strive for payment innovations.
The payment technologies have been explored by the startups and the long-standing brands and companies. These innovations revolve around the mobile payments, payment gateways, mobile wallets, AI, identity verification, and so on.
The cashless transactions will be the new trends. Well, we have seen it anywhere that some folks have already been using digital payment methods to purchase items at grocery stores.
Mobile payments have been working well since their first applications. By 2020, the experts predicted that there will be 760 million people using the contactless payment.
The cashless payment has actually been spreading to many different niches.
One of the best examples is the European Pharmaceutical Company which turned to Erbis cloud Services to build an EHR – electronic health record system. This helps the pharmacists and the health administrator to simplify the billing.
Competitors? No More!
On one side, there have been long-established banks and financial institutions. But then, there were their competitors who can bring up the innovations to the table. We cannot neglect the fact that fast development of digital banking has been looming and disrupting the conventional financial institutions.
They know that many folks want to interchange and use multiple financial services to ease their life. And ones who cannot provide that ease, such as cross-platform transactions, or others, may not be able to survive this moving. The solution? Instead of being competitors, it is a sensible solution for them to become the collaborators.
For instance, who doesn’t know about Visa? Visa has invested to fund the fintech startups. And it would add more relevance to Visa in the world of digital banking. To provide more insights to their users, Visa has partnered with Ingo. Starting from 2020, we will be looking at the incredible partnerships from the startups and well-known established banks and financial institutions around the world. Now, it is easy to find out the services that you can work with. Erbis is one of the most leading fintech software companies.
Smart Contracts will be the key to successful Fintech environment
Smart contracts facilitate and regulate the digitization records which make the digital transactions safe, secure, and enforceable. Yes, “Enforceable”. That means the both parties will need to be compliant to the rules and contracts. The fintech trends will be moving simultaneously with the development and future of smart contracts.
In traditional contracts, the procedure is complex and tedious. The two pieces of paper were fixed by the lawyers of both parties. There are also witnesses to call. That is to prevent any possible breach. If the breach is conducted, the legal action will be taken.
Meanwhile, in the smart contracts, the both parties will sign the contract with cryptographic keys. The difference is that it does not use paper but computer language. These codes cannot be breached by anyone so that the smart contracts enforce both parties to obey.
The smart contracts will bring a lot of benefits in the fintech transactions and the involved parties.
China could be the benchmark of fintech trend
Fintech participation numbers are increasing from time to time. But the statistics have shown that China has the most rapid number of fintech growing and improvement. The revolutioning of fintech in the niche industries in China have been sampled by many other countries. Well, you just need to go to a forum, or community, experts have always made China as an example.
Fintech in China is leading all the categories. And surprisingly, India is close behind China, followed by the US, Russia, Mexico, and Japan. But the spread of the fintech necessities have been around the world. China’s eCommerce market is valued at $740 billion, thanks to Alibaba Group and the other ecommerce industries in the country. US eCommerce market valued at $561. you can see the huge difference here.