Summary of the latest fintech reports – June 2020
While banks are being held back by legacy systems, the fintech industry continues to thrive. To stay relevant and useful to customers, it is vital that banks learn to collaborate with fintechs or risk losing out to them as competitors. This is particularly relevant in the era of Covid-19 where sophisticated forms of communication and technological advancements are growing.
Through our extensive research on the current trends, we have compiled a list of the latest reports on where the fintech industry is heading in 2020 and beyond.
Capgemini’s World FinTech Report focuses on what traditional banks need to do to match the hyper-personalised offerings by BigTechs and challenger banks. The inclusion of Open X, a multi-sectoral open platform allowing the most effective use of customer data, will be key. While front end investment is important, it is vital for banks to possess strong back-end operations and a high performing, modern core to function efficiently. Collaboration between banks and fintechs must ensure that both successfully bring their strengths to the partnership – banks can offer acquired customer loyalty and business acumen while fintechs can provide data management skills and modern technological advancements.
With the ongoing development of technologies such as AI, blockchain and cryptocurrency, 2020 will be a key year for fintechs. KPMG predicts that more fintechs will continue to expand their product range, move into diverse locations and acquire banking licenses. BigTech will also continue to move into the fintech space through either investment or strategic alliances. In the below report, KPMG outlines the most significant fintech trends for 2020.
CB Insight’s report takes a look at the global fintech investment trends and the fallout from Covid-19. Venture Capital backed fintechs have also stalled activity forcing investments to be paused while the market recovers. Covid-19 meant the industry had the worst Q1 since 2016 for fintech deals and since 2017 for funding.
PWC looks at how Covid-19 has forced financial institutions to review their operational deficiencies and adjust their business models. The pandemic has accelerated the necessity of technological innovations and developments and this report focuses on the technology driven influencers for 2020. Targeted customer focus and advancements in AI and robotics will be key disruptors for the financial industry.