What is Fintech?

This following graphic presents the value of global investment in financial technology companies in 2013 and a forecast for 2018. The value of global investment in Fintech ventures amounted to approximately $3 billion in 2013 and is projected to grow to $8 billion in 2018.

Image Credit: - www.statista.com

Below are some of the fintech trends that could become major hits in 2018.

Next-gen chatbots – Banks are expected to deploy more chatbots in 2018, with improved quality of interactions, quicker responses, and more accurate decision making.

Machine Learning – By 2018, banks will start adopting new regression models powered by machine learning to deliver better offerings. By adopting big data tools banks will gain insights to predict customer needs and handle them in a customized manner.

Blockchain – We all know that blockchain is virtually unhackable due to time stamps that mark a data entry in a distributed ledger. Banks will explore options to leverage the power of blockchain to transform backend operations.

Smart workflows – Embedded AI will aid the backend operations of banks, i.e they will be able to quickly identify bottlenecks in their operation workflows and bring in significant improvements in process efficiencies.

Open banking API’s– This is a relatively new financial concept, and open banking APIs are already a 2017 fintech trend. The purpose of open banking is to let third parties use the information stored at financial organizations. So now banks can share data through secure open APIs leading individuals and businesses to more effectively manage their money. 

Extended digital coverage – Until now, most digital banking solutions have been primarily targeted at retail customers. In 2018, banks will extend digital coverage to other areas such as corporate banking and SME banking and also transform their internal operations to get the best out of digital transformation initiatives.

Agile architecture – With shrinking timelines, tight budgets and short lifecycles, banks will follow new architecture models such as micro apps, microservices and more. These things will assist banks to introduce changes significantly faster with minimal impact on existing deployments and services.

Security – Hackers are constantly devising new ways to hack data. Most cybersecurity methods until now have been reactive rather than preventive in nature. So banks need to adopt additional measures to ensure data security at all stages using a combination of encryption, OTPs, biometric authentication and more.