According to Gartner, traditional banks will be made irrelevant by 2030 due to changing customer behaviors and advancements in technology. As fintech startups fire up, the finance industry is set to be disrupted in the next few years.
Here are the 5 trends to watch in fintech in 2019:
1. Changes brought on by regulation
PSD2 (the European Payment Services Directive 2.0), set to be fully implemented in Europe by September 2019, will bring great advantages for consumers – it aims to make payments safer, increase customer’s protection and foster innovation and competition while ensuring a level playing field to all players.
But it will also mean a great deal of change for banks: to stay compliant, they will have to embrace digital transformation across their entire business and the opening up of their APIs to third parties.
This type of open banking will be on the rise (especially in Europe) as it provides greater financial transparency options for account holders ranging from open data to private data, which brings us to the next point.
2. Open Collaboration
Open banking will also bring to the financial industry into a smart collaboration mode. We’ll see multiple partnerships between banks, fintech startups, and other professional service providers (such as accountants and lawyers), all operating in an ecosystem via interconnected APIs. These partnerships will aim to deliver a consistent, seamless experience for end-users, and to provide a wider array of services.
3. Cashless Payments
Carrying a wallet with *gasp* coins inside is close to being a thing of the past!
We expect advancements in mobile and real-time payments – so banks should be thinking mobile first in their strategies.
We’ll also see stores running to get active chip machines just in time to jump on cardless payment train. Soon we’ll be using just phones for payments and all currency will virtually be, well, virtual.
4. Blockchain
It’s not surprising that blockchain will be one of the trends for the sector. But besides being the technology behind cryptocurrencies, there are a lot more ways blockchain will be helping the finance industry.
From cryptocurrencies to improved and faster payments, new banking solutions, trading opportunities, and the improvement of pretty much every industry, from health care to food production and retail, blockchains will soon be normality in our society.
5. Automation
People are not going to bank counters anymore, so not only are banks looking into mobile first solutions, but they are also looking for ways to substitute face-to-face interactions in their sales pipeline. Startups like Attila (from Lisbon Challenge by Beta-i’s Fall 18) are looking into AI to create meaningful financial conversations between clients and their banks.
But AI will not only help us streamline processes, but it will also help our decision-making: helping make on-the-spot decisions about where to put our money, what to do when an account is overdrawn, and approving us for loans and interest rates on the spot.
If you think you’ll be part of this revolution, you should be looking into making strategic partnerships. Join up with SIBS, the most secure, modern, and reliable payment solutions player, who has a network of more than 300 million users. SIBS Payforward Accelerator, the fintech and payment piloting program is back and looking for startups with solutions in Artificial Intelligence, Cyber Security, Blockchain, Big Data, Machine to Machine, Biometrics, Robotics, IoT as well as Open Banking API. Be part of the finance disruption, here.