There’s been a lot of buzz around Fintech this year since the rise of startups is in the air. Want to know where Fintech heads this year? Check out our compiled list of predictions! This is what the experts around the world seem to think:
1. Sensory upgrades
Whether it is smart watches, connected cars or wearables, they will be the game-changers in this year’s Fintech market. Many more Fintech startups are now personal usage oriented. Hence this sector is expected to rise and rise fast.
Still, think it is a far-fetched idea? You’re wrong. It’s already here.
2. Security upgrades
With the volume of transactions going on online, there is a high chance of security issues coming up. There’s a new term going around in the market, and it is called “distributed database.” It refers to verification of actual ownership, clearance of multi-level transactions, fraudulent activity audits, etc. This upgrade will happen this year.
3. Brexit won’t affect
Brexit won’t influence the system because both parties need each other. Those who try to punish the parties for Brexit will be overruled by those who need them to work together. Hence for the sake of everyone’s benefit, they will find a way to cooperate anyway.
4. Partnerships will grow
The big bank that does not focus on customer-centric innovation now will lose in the future. There are also some Fintech startups that will fail to gain traction and will eventually disappear – this has already started happening. Those companies that partner the fastest with the growing financial institutions will be ones that survive the race.
5. Fintech enters mainstream
In Canada already traditional financial institutions are partnering up with Fintech. This partnership will rise this year, and more and more financial institutions will come up with the best way to enter the Fintech system. Thus, Fintech will become a mainstream term.
6. Making room for Gen Z
Gen Zs are the ones being born from 1993 to 2008. They are the most connected generation that has ever lived – with their smartwatches, Apple iPhones and iPads in their hands, they have seen the best. This generation is going to do things differently, and this is why they will change the shape of Fintech.
7. UK and Singapore to remain dominant Fintech regions
It will be an area where the US will continue to fall short this year too. Both UK and Singapore view Fintech with a different level of importance than the US does. The US also has a convoluted scheme that protects the higher companies at the cost of the smaller ones. Such issues continue to be a barrier in the way things progress this year too.
8. US economy to get a boost
Donald Trump is a man who knows his business well. The US is expected to undergo a series of fixings in the Crowdfunding Act. This change will benefit the SMEs in the US. It will plow the seeds of better Fintech for the US in future. But the results won’t be seen immediately.
9. Real estate crowdfunding platforms might suffer
The platforms are already burning through the little cash that they generate. The deals are getting tougher by the day. Looking at the graph, we can say that it will suffer, if not cease operations, this year.
10. Privacy threat
Expect technology to become more intrusive. Already you need your 60 days mobile call logs, personal email address, photo, and other such details to avail a microloan in China. So it means that the bank will read your personal emails just to provide you liquidity. Although not such a big step in the West, expect all privacy barriers to be crossed this year.
What do you think about this? Let us know!