Fintech trends 2017 and beyond are not so much about new technologies that are emerging. They are more about those that we know of affecting strategy in the highly competitive market. Fintech will reduce costs, automate processes and enable solutions that consumers will embrace.
All in all, anyone in the industry will do well to keep these transformations in mind. The digital financial services will surface in all areas of banking to offer the customer a faster and more personal service.
Open digital banking platforms are a way for the banks to offer new digital products and services for their clients. It is a way to combine new and existing processes to attract and keep customers. This is important in the more and more competitive market. Some banks already collaborate with Fintech startups this way.
What’s more, customers want this seamless customer experience from all their banking services, from opening an account to credit cards to private banking. Although private banking and financial advisory have been lagging behind in the digital transformation, they will become more active in finding new digital solutions for their clients this year.
Fintech trends will deliver a step-change in financial capability such as Blockchain, Unicorn, Accelerators, and APIs to become part of everyday conversation. For instance, firms such as OnDeck in the US and TransferWise in the UK are rapidly growing. We are also seeing capital rushing to embrace the investment opportunities provided by startups trying to disrupt financial services.
According to a study carried out by London and Partners, Fintech industry attracted $554 million of investment in 2015. This year is witnessing more focus than ever before in the field of Fintech. But what Fintech trends will have the most significant impact in the future?
Previously, consumer-focused Robo-advisors have mainly focused on providing simple and passive automated solution. However, the new Robo-advisors are offering more detail solutions. The new Robo-advisors allow financial advisors to provide investment tools and financial service. Companies to watch in this field include Forward Lane, Worth.fm and Polly Portfolio.
Regulatory regimes change rapidly across the world and regulatory tech is becoming a billion dollar industry that is appealing to investors, financial institutions and regulators alike. The regulation tech companies offer services and tools that automate compliance tasks, reduce fraud risks and improve identity authentication and management.
Although this market is still young, expect this field to make great impacts in the future. A company such as QumRam, a Switzerland-based company, is developing rapidly by allowing every interaction between clients and advisors to be recorded, making all recordings auditable without physical intervention. One of their pioneer clients is UBS.
Automate all Experiences on Mobile
Risk management, student loan management, bill payments, mortgage origination, offers and promotions, marketing communication, customer care or any other financial service process have been automated. Entrepreneurs are automating everything, making users access services by just tapping their smartphones.
This field of FinTech has a high potential to expand. There are a lot of customer experiences that are yet to be automated. A Company such as Blend Labs offers a Rocket Mortgage capability to many banks, automating the whole mortgage experience and making it accessible via smartphones.
Fintech that creates Social Impact
The success of FinTech industry rests on the perception among the general public. Fintech firms that focus on solving global economic and social challenges are attracting more customers. Today, firms that meet the needs of the (un)-banked are more accepted than traditional banks. In future, we are certain that FinTech firms that solve social problems will make a lot of profit out of society.
An example of FinTech firms that are trying to solve both social and economic problems are PayActiv and BanQuApp. Payactiv encourages better ways of saving while BanQuApp creates the economic identity in societies that are less privileged.
The above Fintech trends will continue to make an impact now and in the future. We expect to see greater empowerment of people, major developments in customer experience and more lending facilitation through technology.