The Fintech industry is going through a storm due to the technology changes. A report shares that 56% financial institutions have put disruption at the heart of their strategy. The same source also reports that 77% institutions expect Blockchain to be an invincible part of the process in coming three years.
The figures clearly portray the way advent of new technology has created disruption across the industry. To overcome the fear of being lagged behind, financial institutions are looking ahead to increase their collaboration with young companies. In fact, out of 1300 participants, 82% say that in coming three-five years, such collaborations will increase drastically.
The reason behind disruption in Fintech is that the new tech-cohort is well equipped with the latest trends, while 88% of the participating traditional houses are concerned about losing their business to the new members of the business.
How to overcome the fear?
While 30% financial institutions have already started investing in modern technologies like AI, 54% participants consider that protection, privacy, and data storage is a major hurdle for them to adopt an innovation.
However, to assist you in growing your fintech business, here we have prepared a list of recent technologies, which can help you have your business achieve new benchmarks.
Before we learn about the emerging technologies, let us try to have a little knowledge of the biggest trends in fintech that’ll be building future of the industry:
1. Startups will rule
Though the preceding year has been tough for the fintech startups, this year will write a new saga for them. In the year 2016, several giant fintech companies overtook the smaller ones. While many looks at this as a fall of startups, it is no doubts the beginning of a new era. In either case, whether you are a startup or a giant, the year 2017 has a lot in its box for you.
2. Fall in valuation
No doubts that over the past few years the value of fintech companies has declined drastically. Currently, there are around 20 companies whose value is around $1 billion or more. The market has reached a steady level and now is looking ahead for a big jump.
3. Starting from scratch
The fintech industry is now at a stage to get to the core problems in the banking system. Even blockchain is not a secret weapon that’ll disrupt banking. This will no doubts give the entire industry an overhaul. It is expected that in the current year, fintech companies will be reviving the traditional cores with the blend of modern technology.
So, now that we are acknowledged about the expected trends, let us try to know about the trends that’ll directly impact the fintech market. They are:
4. Expanding approach to AI
Artificial Intelligence is at an all-time peak. It has marked its impeccable presence in various industries. It is expected that with its growing popularity, soon we’ll find AI in the fintech industry. They’ll no doubts utilize predictive analytics to break down big data and analyze Go to the full article.
Source:: Business 2 Community