Top fintech trends in H2’20

Acceleration of digital trends

COVID-19 is driving a major shift in customer behaviors — with a rapid increase in the use of digital payments models and online product and service channels. It has also shifted how businesses operate, with many accelerating investments in digital channels and related enablers in order to meet customer needs. This acceleration will continue to drive fintech investment geared toward succeeding in the ‘new normal’.

Rise of platform business models

Platform companies and large tech companies will continue to brand into financial services areas, like payments, to broaden their service offerings, provide seamless services to customers across their digital ecosystem, and drive expansion into new markets.

Fintechs moving into adjacencies

In order to better compete and gain additional market share, mature fintechs will continue to expand into adjacencies to drive more customer value.

Strategic deal activity from corporates

There will be increasing fintech investment from corporates, not only in customer-orientated digital technologies, but also in the back office space as a means to improve operations and better manage costs.

Consolidation

With many early stage fintechs struggling to attract continued funding, H2’20 will likely see increasing consolidation among fintechs, in addition to increasing acquisition activity as opportunistic investors look for deals.

Governments focusing on fintech regulations

Governments across the globe will continue to focus on regulation, whether customer privacy, open banking, or the issuance of new licenses. While much of the regulation will be to keep consumers safe, it will be increasingly used to foster fintech investments and encourage sector growth.