The evolution of the FinTech market has been unstoppable in recent years. We have seen growth under various aspects: from the financial literacy of the average user, to new automated services and processes by banking and commercial institutions.
The financial revolution surely doesn’t risk getting interrupted right now: here are the five FinTech trends which will most likely be observed during 2019.
The adoption of Blockchain technology
Decentralized, democratic, without frontiers.
Blockchain technology will continue to lead in 2019.
For the FinTech market, the blockchain is a guarantee of responsibility and efficiency: the intermediate steps disappear, the transactions are quick and the settlement times are shortened.
In the following years, we will see banks and payment processing platforms adopt blockchain more frequently to reduce prices and speed up the process.
As the awareness on the blockchain advantages increases, users will also have easier access to technology, and will switch to cryptocurrency as a digital payment method.
Accessibility, convenience and functionality: these are the three keywords which identify mobile banking.
More than 50% of the world population owns a smartphone, and this number is bound to grow exponentially over time: more and more customers will have access to mobile banking apps.
Convenience lies in the decentralization of the service. It’s no more necessary to go to the branch office, but most banking transactions can be now carried out using smartphones.
Banks, for their part, will continue improving their app every month, transforming them from a tech accessory, to a fundamental tool for managing savings.
The increasing dependence of financial institutions from digital technology also brings some drawbacks with it: cyber-attacks and security holes are repeated more frequently.
The PIN numbers that are necessary to access our bank accounts will become obsolete, and will be replaced by biometric authentication technologies
Face and voice recognition, digital fingerprints or the analysis of the distribution of the veins in the palm of the hand are only some of the methods that are already in use in different areas of our daily lives.
Soon FinTech will also adopt them to increase the access security to user services.
Digital and cardless payments
If cash continues to play an important role in our daily payments, new technologies and customer expectations are moving to accelerate the digital payment revolution.
In Europe, Sweden is already implementing measures to gradually phase out liquidity.
In urban China, the use of QR code payments via mobile phones has become almost omnipresent.
Payments remain a fundamental point of contact between banks and customers.
With digital payment methods, banks will have to concentrate on new methods to maintain loyal customers.
Some banks are already doing it by offering personal financial management tools, with personalized financial advice.
Growth of RegTech
RegTech goes hand in hand with innovation in FinTech.
The term RegTech refers to all technologies that help companies to comply with regulations that govern the FinTech sector.
With an investment that reached 2.5 million dollars in the first half of 2018, the companies that are part of RegTech are optimistic about the future.
The good year of 2018 is largely due to the repercussions of the new European Legislation for private data management (GDPR).
This post is also available in: Italian