What major trends will affect the financial sector in 2020… and the next few years? Let’s discuss it.
According to a report from PwC, a leading international auditing, accounting and consulting firm, FinTechs will dramatically shake up 2020 and the years to come. FinTechs are companies, often start-ups, that combine the financial services world with technology. Focused on innovative processes, they compete with the large banking institutions. For example, the Cleo start-up answers everyone’s financial questions through Messenger. In this way, a user who wants to know in a few seconds if he has enough money in his current account to buy a good coffee only has to ask Cleo, his virtual personal financial assistant!
Artificial intelligence (AI)
The PwC report also indicates that over the next decade, important alliances will be formed between the major financial services and technology companies that use AI. One of the goals of this collaboration is to develop robots that are even more sophisticated than ATMs, in order to reduce service costs while providing an excellent customer experience. In other words, when technological advances replicate emotional intelligence, language processing, mobility or even logical reasoning, we could see robots replacing bank tellers…
Blockchain is a decentralized information storage and transmission technology, without a control body. Although it underpins digital money (e.g. Bitcoin), its use goes far beyond the monetary aspect. Blockchain offers a world of possibilities, including reducing the costs of financial services infrastructure. This is why industrial groups and banks are investing massively in development of this technology. In 2020, PwC expects to see an increase in funding and innovation in this field.
The virtual world is not all rosy and cybersecurity issues are very real. In addition, PwC’s 19th annual world survey shows that 69% of financial services executives say they are concerned about cyber threats. And what about gaps in protection of customers’ personal data? Unfortunately, PwC does not expect major improvements in this area in 2020, in part due to the complexity and mobility of different technologies.
It goes without saying, the next year and the next decade hold many challenges (and surprises!) in the financial sector. It will be interesting to see who of the various actors will emerge victorious.