The fintech sector will see new developments in regulatory technology (regtech) during 2020 as disruptive technologies continue to change the market, according to industry experts.
In addition to developments in regtech, there will be improved payment options and enhanced customer service, according to Anton Zujev, head of business development at Fininbox.
He said: “AI will be crucial for more convenient customer service and operation tracking. Blockchain is becoming relevant because of its wide appliance in various fintech areas, such as data protection, cybersecurity, trade finance.”
There will also be more partnerships between innovative companies and government to improve services, Zujev claims.
He added: “It is important to lead governments towards more digital and innovative approaches in finance.
“Even though both AML (Anti-Money Laundering) and KYC (Know Your Customer) have always been compulsory during the boom of fintech, the complexity of regulation should not be a limiting factor for fintech growth. Therefore, innovative regtech solutions and legal frameworks which simplify reporting and compliance requirements for fintech should be welcomed.
“Emerging technologies should expand towards instant digital payments. There is no doubt they will make the user experience much more immersive in the near future.”
Some of the most significant changes could include the increase of the SEPA Instant Payments limit to €100,000 in Europe along with 24-hour service for nearly all instant payments. Zujev also predicted that open banking would continue to have an impact.
According to the Business Research Company, the global fintech market was valued at £96 billion in 2018 and is expected to grow to £237 billion within two years.
Established back in 2015, Fininbox, part of the Forbis group, provides a range of banking Software-as-a-Service products for electronic money and other financial institutions.