A summary of some of the commercial developments in the fintech space for 2019 and looks forward to 2020 with predictions of likely themes.

1 – Partnerships!

We’ve seen an explosion of partnerships across the sector in 2019, neo banks  and personal finance have spearheaded the rise in marketplace banking offerings.

2019 has seen Monevo partner with Confused, Plum, Yolt and Monese. We have a host of other very exciting partnerships set for 2020 and beyond that we can’t wait to announce.

Big tech partnerships in the PCW space this year have seen CYBG and Go Compare get in bed for energy switch and Confused.com integrate Monevo to provide more lenders to their panel.

Where the ever-growing and ever-popular challenger banks lead, the incumbents will soon follow. I fully expect the old-guard to adopt this approach to give opportunity to provide more positive interactions through products they don’t provide and in terms of credit decisioning, looking to others to provide alternative yes outcomes, helping customers access products Banks can help oversee. This is my big prediction for 2020!

2 – Open Banking

We’re still very much at the start of the Open Banking revolution PSD2 has kicked off. The pace of change in all areas of Banking FinTech will continue to revolutionise customer experience and products.

Too much info? As credit providers get their head around the vast volumes of data available on their potential and current customers, intelligent product builds will help lenders filter the data into what is useful to them and discard what’s not behind the scenes. 2020 will be a big year for those that

3 – RegTech

It’s hard to think of an industry that has seen as much technological change in the last 5 – 10 years and it’s even harder to think of a more regulated industry. How Risk, Compliance and Legal handle the pace of change is inevitably through tech.

Expect to see VC cash pile into this sector and great new solutions and products continuing to appear throughout the Banking and Finance industry, helping streamline process behind the scenes from consumer-facing products.

4 – Big Boys Coming to Play

Apple card is here, Facebook’s new Libra cryptocurrency arrives next year. Expect more big names to dip their toes into the FinTech waters as they look to expand their product spectrum (and also squeeze more commercial value out of their current customer base).

FinTech is such an attractive prospect, the returns in the space as well as the pioneering techonology, it’s only matter of time before we see familiar names in the space.

5 – Neo Banks

Nothing new here, they’ve featured on every prediction list for the last 5 years….

Starling hit 1 million customers last week, Revolut have over 8 million and Monzo nearly 3.5 million. Everybody loves the Neo Banks (except the incumbents, of course), with the bottom lines improving, they’re all sure fire bets to all be here for the long term, fending off predictions from many a quarter!

With n26 and Monese growing at pace and the old boys of the sector pushing out their own brands, such as RBS’ Bo, the charge will continue.

Monzo is the UK’s most recommended brand in the UK according to a YouGov report, ahead of Universal, Money Saving Expert and Bose (amongst others..). Hot Coral is going nowhere!

Expectations here are for each to diversify further their credit offerings, providing more products and services for customers, primarily themselves but also through the aforementioned partnership route.

The big question for me is whether or not we’ll see any of consolidation or acquisition we’ve yet to…. roll on 2020!

Will Hurst, Head of Commercial Development at Monevo, part of Quint Group