Fintech Trends for 2020 and Beyond


Among sectors that hold the potential to disrupt and transform conventional industries is financial technology or FinTech. The impact of developments in FinTech can have a dramatic impact not just on businesses but also on modern everyday consumers. Thanks to the ever-expanding reach of digital services like Spectrum internet cable, FinTech can tap into a very large market. If you’re interested in FinTech and want to gain some insights into the trends that will shape it in 2020 and beyond, read on.

4 FinTech Trends in 2020

FinTech holds the potential to catalyze a major transformation within the financial industry. But at the same time, it may also be one of the most stringently regulated sectors in finance. Governments, legislators, and regulatory bodies understand the need to protect businesses and consumers that rely on FinTech. At the same time, they need to ensure a fair environment for all industry players, including conventional ones, to compete.

On the other hand, however, legislators have a hard time agreeing on regulations for this rapidly evolving industry. Key established players like traditional banks as well as non-banking financial service providers mean stiff competition, making the industry even more volatile. This blog explores 4 trends in FinTech to watch out for in 2020 and the decade beyond:

  1. The Shift Towards a Fair, Competitive Environment
  2. The Increasing Influence of Neobanks and Challenger Banks
  3. Improved Customer Experience with AI and Robo Banking
  4. The Development of Alternative Lending Solutions

Let’s examine these trends and what they could mean for the industry in more detail below.

The Shift Towards a Fair, Competitive Environment

Many large traditional banks that enjoy dominance today are the result of massive consolidations that began in the 1980s. This puts them in a position to exert their size and market share to crush new entrants rather than compete with them. But in 2020 (and hopefully in the decade to follow) FinTech companies are making increasing efforts to push for a level and fair environment with healthy competition.

One of the ways this could manifest is in stricter regulations on the financial sector to give FinTech players a more equitable environment. Of course, traditional key players such as large banks and financial institutions will still retain significant leverage. But may FinTech players have already begun to make inroads to increase their share of the financial market.

The Increasing Influence of Neobanks and Challenger Banks

Neobanks is the term used to refer to completely online or mobile-based financial service providers. Challenger banks are usually specialist mid-size firms that aim to compete with established traditional banks for specific niches. Both of these new types of financial institutions offer challenges to the traditional banking system.

They offer a variety of similar services such as accounts, cards, payments, loans, and even investment or share trading. With the current interest rate on the lower side, these new banks can capitalize by offering higher saving rates, better customer experience, and lower service fees. We could also see increasing efforts on the part of these FinTech institutions to obtain venture capital to offer better digital services. We could see a repeat of the disruption that low-cost carriers had on the airline industry.

Improved Customer Experience with AI and Robo Banking

FinTech players could begin offering more low-cost investment and trading options in 2020. This could mean a massive shift in customer experience when it comes to the investment and trading segment. We may see key new players capitalizing on a large part of the market. Alternatively, we may also see traditional financial institutions prompted to change their investment and trading offerings.

One of the biggest differentiating factors in this respect will be customer experience. Robo advisors have been used in FinTech sectors in the past. While they haven’t managed to capture a large market share, they have catalyzed a change across the wealth management sector. Advanced AI tools and low-cost investment may both play a huge part in motivating more individuals to opt for FinTech passive investments.

The Development of Alternative Lending Solutions

According to this study, nearly half of people over 55 participate in the sharing economy that transfers wealth from investors to young millennials. This has led to increased adoption of alternative lending solutions like peer to peer lending. In 2020 and the years to follow, we may see P2P lending platforms gain a firm foothold on the lending industry. FinTech companies can leverage lower operating costs, generous returns for lenders, lower service fees, and advanced credit assessment techniques to capitalize on this opportunity.


FinTech was already in place to disrupt the financial industry, even before COVID-19. With virtually every industry and individual affected directly or indirectly by the pandemic, people are relying more and more on residential internet services like Spectrum El Paso. With an increased public reliance on the internet, unprecedented conditions, and opportunities to grow. FinTech may emerge as a key influence within many financial sectors.