2016 was one of the most changing years in terms of politics, events and the financial market. However, despite the twists and shocks of 2016, the Fintech industry kept up an impressive pace and continued to develop. This development looks set to continue through 2017, and there are some predictions on what shape these developments will take over the next year, and on how Fintech will affect the financial markets as a whole.
1. Artificial Intelligence
There have been some serious advances in artificial intelligence and this looks set to replace the automated systems that are currently in place. This would mean that all queries would be answered by a bot, and only the complicated questions would be answered by a human. This can save time not only for the business but for the client as well.
2. Fintech Banking
The Fintech companies that offer banking products like checking accounts, savings accounts and debit cards are very likely to become more popular in the coming year. This may take the form of a Fintech front end with a traditional bank back end. However, as Fintech companies are going to have bank charters in the near future, this may not last much longer than 2017.
Financial companies are embracing technology and Fintech more and more, and throughout 2017, it’s very likely that this trend of collaboration will continue. As clients are looking for technological solutions more often, and expecting companies to be accessible on all platforms, collaborating has become very important. Companies like CMC Markets are now offering mobile apps to provide clients with the services that they are now demanding. These collaborations will continue throughout 2017, and beyond
Initially, blockchain was only recognised through its involvement in bitcoin. 2017 looks set to be the year that it comes into its own, and it’s very likely that we will see the larger financial institutions having some operational successes with blockchain. Predictions are that by the end of 2017, the smaller institutions will be looking to understand and replicate the operational successes.
5. International Investors
In previous years, Fintech companies have been considered to be a hot investment by US investors. In the coming year, it’s highly probable that international investors will be looking at the US Fintech market for their investments. The Fintech market in the US is considered to be stable, large and growing, and all of this makes it a very appealing investment opportunity.
Privacy and security have always been important for consumers, but as the technology develops over the next year, these issues are going to take on new levels of importance. The new General Data Protection Regulation will allow consumers more control over the use of their data, and stop companies from using their user data without the consent of the user. In fact, charges have already been filed against Facebook for misleading users on how their data was shared between Facebook and Whatsapp. The innovations that this year will bring will help companies comply with the new regulations and protect their clients against cyber crime.
7. Events of 2016
2016 had some twists, turns and shocking events. These events either have already come into effect at the beginning of 2017, or will come into effect over the course of the year. For example, Donald Trump became the president of the United States, and the decisions he makes as president will have very real consequences for the Fintech industry, and the financial industry as a whole. Likewise in the United Kingdom, the decision for the UK to leave the European Union will have an effect on the financial sector. While this has yet to come into effect, it will happen this year, and various deals are yet to be negotiated. These negotiations will impact the Fintech industry and probably all industries.
Overall 2017 is going to be an interesting year for Fintech. As well as the developments mentioned above, there are many other probable developments that we will see over the year. This includes technological advancements, the emergence of potential partnerships, investment opportunities, and a focus on Fintech banking solutions for businesses. These developments can mean that this year there will be an increase in understanding about Fintech, and more action in incorporating it for the benefit of the customer.