AI, fintech, blockchain: these are some of disruptive technologies that are transforming our lives day by day. From fintech taking over traditional banking to revolutionizing payment services, there is no shortage of interest in wondering what the next big trend is in financial technology.
Testing fintech globally in 2018
According to PwC, a fintech ‘sandbox’ is an environment in which innovators and testers can come together to experiment and mimic new technology to prepare for any deficiencies.
On the 7th of August 2018, a global sandbox dubbed the Global Financial Innovation Network (GFIN) has been established with the collaboration of 12 financial regulators and organizations to support innovation in emerging technologies. GFIN members include the UK’s Financial Conduct Authority (FCA) and Abu Dhabi Global Markets (ADGM).
The Monetary Authority of Singapore has also launched a sandbox earlier this year to encourage innovation in Fintech, while in the USA, regulators are welcoming fintech companies; the Office of the Comptroller of the Currency (OCC) has already begun accepting fintech bank charter applications.
Fintech trends for 2019
Digital banking
In its latest report, Deloitte recommends banks to prioritize compliance modernization in 2019 by making regulatory systems more efficient. The same report forecasts that more banks will be diving into fintech through partnerships, or by launching digital banks.
The UAE’s first digital bank has already been launched by Emirates NBD, catering lifestyle banking for millennials, while featuring ‘conversational banking’ wherein customers can communicate with bank employees through the bank’s application. Addedly, customers can instantly make bank transfers.
Increased demand for fintech services
Though regulation may be a challenge for fintech services, the demand for consumer banking and wealth management is expected to increase greatly over the coming years, according to PwC. The same report urges banks to cooperate with digital intermediaries to deliver their services at a lower cost and through user-friendly means, as consumers become more tech-savvy.
Mainstreaming digital payments
Though paper money is showing no sign of being fully replaced in 2019, more businesses and consumers are expected to follow the trend of paying digitally. With services such as Apple Pay and Samsung Pay, more individuals are inclined to put paper money on the side and make the transition towards digital payments.
Insights to keep in mind
Because technology is fast-paced, and tech-services are adapting more quickly to consumer behavior and preferences, it becomes essential to know the market trends in fintech in preparation for the coming years.
As consumer demand increases for more automated services, companies can leverage AI and new technologies to cater to consumer demand. Addedly, companies can personalize their products and services such as Investera, which is an investment management application that leverages AI by allowing customers to automate processes according to their preferences, design personalized workflows and customize the software as per their specifications.
In order to keep up with consumer demand, fintech must remain innovative and modern. Companies that keep up with the trends of the fintech market can gain a competitive advantage by adapting to these trends accordingly.