It’s impossible to fully predict where the Fintech industry is going, but we can identify patterns and spot trends. For 2018 we can assure that the Fintech disruption will continue to change the existing relationships between users and conventional financial institutions.
These are some of Fintech trends that will continue to develop during 2018:
#1 Fintech and conventional banking
Fintech is here to stay, and every solution that it’s offering either complements or improves existing products of conventional banking. Conventional banking has all the experience in the book, and the necessary infrastructure to complement and launch the fresh products Fintech is introducing to the market. In a near future the collaboration between these two sides of the industry will be a determinant factor for the survival of both.
#2 Blockchain technology
Blockchain technology allows banks to create digital books that record transactions in real time, and that are accessible to all those involved in transactions.
The incorporation of blockchain technology into Fintech will help to increase the efficiency of processes, such as digital transfers and electronic payments making it easier to determine where the money is coming from, and where it goes.
#3 Seamless, natural transactions
One of the most frequent goals of the Fintech industry is to create financial experiences that feel natural, seamless and easy.
Amazon Go is the most popular example for this practices; Amazon Go is a new store format that integrates computer vision, learning algorithms and sensor fusion to automate the purchase and payment processes that go with every financial transaction. This trend points us to where the financial processes we are used to are heading.
#4 Prepaid Instruments for payments will become obsolete
While most of the current Fintech users rely on wallets and prepaid investments for transactions, this might be set to change: sound-based payments, a cost effective alternative for the expensive hardware needed to process prepaid transactions, is being introduced.
Through frequency of tones in the existing EVC machines, the sound-based payments technology enables transactions directly to the merchant’s bank account.
#5 Customer will still be king
Fintech has shown users that banking practices that were previously slow and in person can now be done instantaneously, automatically and remotely.
High quality services that improve the lives of customers will continue to be a constant for Fintech companies. The implementation of technology in processes makes expectations about services higher. The Fintech sector will continue to strive to create products and processes that are easy to access, simple to use, and mobile in nature.
As with any revolution, it is impossible to predict completely where the Fintech sector is heading; for the moment, financial inclusion and customer orientation, as well as usability and portability of services, remain constant in their practices. However, these five trends represent some of the financial practices and developments that we can expect in the near future.
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