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22 December 2017
“Development is about transforming the lives of people, not just transforming economies.” These words, pronounced by Joseph E. Stiglitz, an American economist and a professor at Columbia University to the best advantage reflect our reality, and reality of the fintech industry in particular. The year of 2017 has demonstrated the fact that innovations in the financial services arena transform the lives of people on the planet, enhancing financial inclusion and turning the scales from financial giants, traditionally usurping the power of the markets, to new players with decentralization being a new trend in relationship built between the transacting parties. So, what should we expect to see in the financial technology space within the upcoming year of 2018?
ICOs: people want more
Success of Initial Coin Offerings driven by growing value of Bitcoin in the market on the wheels of the launch of Bitcoin futures trading and lump sums raised by technology companies and even those firms, the environment of which is not associated with blockchain, during the token crowdsale will be picking up more steam, as this type of financing features low risks of running into debts for the businesses and easy money for startupers.
Machine learning again
Customers are never satisfied with what they have, they want more convenience, more security, more user-friendliness when accessing daily services like banking or payments. Banks and financial institutions will be focused heavily on adopting more machine learning and artificial intelligence technologies enabling them to provide higher level of services and solutions to their clients, as the applications with the AI interface will be able to learn and adapt to the behavior of users.
Machine learning and AI solutions will help financial institutions in analyzing and processing large volumes of data and generate unique ideas and concepts for further improvement and development of new financial products customers expect to see. Besides, machine learning algorithms will be a training wheel for fighting various types of online fraud, thus, ensuring higher protection both for customers and service providers. Besides, AI solutions serve as better alternative to human service when it comes to quick access to the information in response to user’s queries. Many banks are already using robo-advisors to consult their clients and help them with the banking or investment products. Just look at how Alexa is gaining popularity with the financial institutions.
Mobile solutions still viable
Mobile retains its top positions in the market as young generation is increasingly using their smartphones for a range of purposes, including financial operations. It means, that financial institutions, payment services and banks will be further developing and improving mobile apps to tap into the market, which is expected to reach $92 billion in 2019.
Mobile solutions will vary from ordinary money transfer services to mobile platforms for trading stocks, as customers are looking for alternative ways to make investments without high broker fees and high amounts for minimum deposits. Besides, blockchain technologies are also rapidly integrated into the mobile environment, bringing cryptocurrency trading and other blockchain-powered services to smartphones. Customers want faster access to their cryptocurrency wallets right from the comfort of their mobile devices, so fintech firms will be doing their best to meet this demand.
This aspect of the financial services will never become obsolete, as hackers feel very enthusiastic about finding more targets for their sophisticated craft. The scandal around Equifax is a good proof of undying interest to security solutions. Add the ban of the US government of Kaspersky on top of that. This gap should be closed by other firms.
Overall control practiced across the globe by the authorities to surveil virtually any activity of Internet users is still a concern for the whole world web community, which means that solutions increasing privacy of transactions and financial interaction between the parties will be of high demand.
Exciting articles several times a month