fintech_future_trends

Where is the fintech market heading? Some must know trends and predictions

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Where is the fintech market heading? Some must know trends and predictions
Where is the fintech market heading? Some must know trends and predictions
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Fintech has the potential to alter banking as we know it today
Much has been already written about how traditional banking information services are asynchronous, asymmetric and their infrastructure expensive, non-differentiated and low on employing tech capabilities. Also, banking products have a very long development cycle and banks have traditionally struggled to innovate at pace worthy of the times we are living in. Advent of fintech has shown the potential to transform that landscape rapidly. And while some enthusiasts believe that fintech will eventually eat into conventional banking as we know it, the fact is majority of fintech companies right now are serving banks as their customers. So, it might be a little premature to pass a clear verdict on the future of banking right now. But certainly, the fintech industry is evolving beautifully and there are some early trends that suggest the outcomes this disruption will cause in the banking and financial industry. In this article, I have talked about some fascinating upcoming fintech trends, seeds of some of which have already been sown.
Blockchain will see life, and life beyond bitcoin
Blockchain technology has obvious merits. Its ability to comprehensively store transaction data is a money saver, risk reducer and an optimizer of resources and procedures. It is being considered as a huge enabler for the bitcoin or other cryptocurrency. I think blockchain certainly has a bigger potential than merely specific bitcoin or cryptocurrency use case. It can extend to the Internet of Things (IoT) as well. IoT, as part of the network infrastructure, will be the pivot for extensive data transaction among devices. And encryption of this data and its secure management will be of high importance for the stakeholders. Filament , a Nevada-based startup is seeking to use the bitcoin blockchain and Ethereum to enable Internet of Things (IoT) devices to be tracked and transact using a public ledger system.
Simplification will be the focus of startups in crowded segments
As more and more startups will mushroom in the fintech space offering indistinguishable services, the ones offering the most simplified protocols for data storage, data retrieval process and consumer interfacing will gain attention. Simplification will be tied to the dual intents of investing to increase business value and also to optimizing business costs. For e.g., technology driven P2P interaction has simplified peer-to-peer lending. Investments in technology to simplify the process steps and information network will remain a key focus theme and keep the fintech market on its anvil. Some examples of early stage startups in the segment include Israel based AlgoValue (algorithm that simplifies valuation process) and Singapore based Call Levels  that simplifies the real-time financial monitoring process.
Fintech offerings will eat into some conventional banking and financial products
Particularly in the developed economies, plastic and ATM driven banking might suffer. International money transfer is another segment that has scope for efficiency gains, optimization and simplification. Mobile first generation might see no value in real estate driven branch banking and instead prefer fintech providers. Even if banks come around and mimic fintech models, some of the conventional products might just find no takers.

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