FINTECH PROSPECTS FOR 2017: what customers and businesses can expect

27 December 2016

This year has shown that popularity of fintech has grown, and fast. Its meaning, especially for small businesses and individuals, cannot be overlooked. Fintech has already changed our business and life perspectives. And the upcoming year promises even more perspectives, and while some of them are additions to the prospects that have been set in motion in 2016, the others are brand new. The promised changes are going to give entrepreneurs and startrups more space for further development. Here are some prospects for the nearest future:

Bank computerization

Ever since online payments were presented, online banks and other convenient services have been introduced.  And they have a lot in store. With lower prices the users get higher speed and adaptability. It also makes money transfers from one country to another easier. People, wherever they are, can get money in their own currency and they don’t have to pay any extra for that. Banks will hire more IT-specialists to develop their digital services.

With the augmented reality (AR) and virtual reality (VR) technology it can go even further. In the future people will be able to actually “visit” a bank without leaving their home. In the end, you won’t need your PC to do that, because ARM Holdings introduced a new kind of chip, the Cortex-A73, and it is expected to support VR. People will be able to get a full banking experience from afar.

Change for underserved nations

As habitual as the use of Internet and mobile payments can be for some of us, the situation is completely different in underdeveloped countries. Therefore, fintech definitely has advantages when it comes to consumer-driven products. While some of such countries don’t have the access to traditional banks, online banking can be an answer to their prayers.

For example, National Payment Corporation of India (NPCI) is planning to launch Unified Payment Interface 2.0 (UPI) by March, 2017. The new version promises to be more advanced and secure. Not only will people be able to transfer money from one account to another, they will also have an opportunity to pay all their bills. It will be fully automated, too. And the speed of all the operations will increase as well.

payment

Digital advisors

Online trading services will gain popularity, getting ahead of traditional financial solutions. Since the important data is now available online, it is easier to develop electronic advisors online, without attracting too many financial planners. Small fintech companies that know their job will prosper from that. Artificial advisors will be able to predict the financial prospects based on the data they analyze.

Digital Advisor is going to be an intellegent fund selector and it’s going to fasten the selection process. This system can scientifically scan the funds, both passive and active. It also is to reduce the time-to-market when it comes to new investment projects. And in the future people should expect more projects like this.

Crowdfunding expansion

This year fintech financing has attained US$53 billion in the first 3 months alone. Thus, fintech can be unmistakably called a profitable segment. Furthermore, crowdfunding has been on its peak. And their relationships go both ways, since crowndfunding uses digital resources and apps and tech support. On the other hand, some new fintech projects need financing, so they choose crowdfunding platforms to raise money on.

This year Flender, a fintech startup, managed to raise over €450 000 by through crowdfunding. This peer-to-peer platform is going to launch in January, 2017, and it will help people to lend and borrow money using their networks. The co-dependency of crowdfunding and fintech financing is predicted to change the life as we know it.

Blockchain is still on top

Safety considerations require the use of special software to make deals.  The blockchain helps people to avoid paying twice. The more automatized the software is, the broader variety of operations can be fulfilled. Fintech companies will need to keep developing more advanced blockchain systems, since that’s what they will be expected to do in 2017.

Blockchain

The new addition to Bitcoin, called Teechan, was announced. It is said to be space-efficient and more safe when it comes to transactions. With Teechan users will be able to pay through just one message. And it is going to be much faster than Lightning Network. It is expected to be available in 2017.

Biometric data protection

With the development of online banking the danger increases as well. Knowing how much money is at stake, the need for experienced companies that can provide safety is obvious. The original authentication programs are being developed. For example, Nymi created a new program that can confirm payments with the use of the consumer’s heart beat rate. And it was proved to be effective.

Nymi band already has a biometric sensor that can help people secure the use of their mobile devices. The band development hasn’t been quick so far, but it all may change in 2017 with Apple Watch and Androind Wear adding biometric sensors to their products. It will change the idetifying process and highten the level of security in 2017.

ATMs of the future

Cash machines won’t be used just for giving people their supply of cash anymore. The banks are going to create a new version of ATMs that can provide you with the number of services. They will be provided with biometric protection as well. Many consumers will be able to use fingerprints on their ATMs. Cash mashines will also be able to serve as personal consultants, and it is predicted that people will use cash even less in the future with the majority of payments being digital. Time will show how soon it all will come true, but some changes in that field are definitely to be expected in 2017.

Fintech is a part of technical revolution. Those predictions show that sooner, rather than later, people will live more comfortable lives. The progress is moving fast, the new technologies will reach all the corners of the world helping consumers to use the variety of apps and perform different financial operations. The upcoming year’s fintech development is going to be very interesting to observe.

Blockchain techs
Mastercard may launch a payment system for fast cryptocurrency transactions
Banking techs
Korea digitizes mortgage and loan documents on a blockchain platform
Articles
Writing a White Paper for an ICO: expert recommendations
Show more posts...