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Fintech Advancing Steadily In Coming Year

Fintech Predictions for 2017

For the last decade, fintech has been developing and advancing, often in the background with little acknowledgement from most of us. But in fact, the fintech explosion has changed the way our world economies run with innovations such as mobile banking, online lending, and internet payment solutions such an integral part of most of our day to day lives it’s difficult to imagine how we coped without them. In the coming years as more and more fintech innovations hit the mainstream we can expect as much, if not more, advancement, but perhaps this time we’ll be paying enough attention to recognise the progression.

Collaboration

The experts in both traditional financial industries and fintech environments believe 2017 will be a year for collaboration with greater fintech engagement enabling better service and delivering superior products. Though in the last few years fintech may often have been categorised as a disruptor, it’s expected that going forward we’ll see more cooperation between some of the large traditional financial institutions and smaller, cutting-edge fintech visionaries, providing the end user with new, more convenient, and safer financial options and alternatives. It’s entirely possible that debit and credit cards will become obsolete as mobile banking progresses to the point where contactless digitised mobile wallets are so widely accepted that such convenience and security can no longer be ignored.

It’s also expected that new regulations (such as PSD2 in Europe) will drive greater innovation and open up the banking sector as they allow for third party access to banking information. By encouraging open banking platforms, it’s likely we’ll see fintech firms partnering with banks for more engaging and exciting customer experiences. Of course, security remains a serious concern, perhaps even more so in the financial sector than elsewhere, and experts are insisting that financial organisations of every kind ‘get their houses in order’ to ensure thorough defence against the ever-progressing cyber-attack trade including such assaults as Denial of Service (DoS), Distributed Denial of Service (DDoS), theft of financial data, and malware threats.

In 2017, it’s also predicted that customer expectations will increase as our instant gratification demands reach an all-time high. Thanks in part to extraordinary and often instantaneous service from some fintech startups, consumers will in the future have even less patience with providers that require waiting periods and instead switch over to competitors able to immediately fulfill their desires.

And in the coming year, it’s probably that artificial intelligence will play a substantial role in fintech, as well as in a host of other sectors. This will mean more rapid customer engagement and communication and will likely improve the performance of both traditional and fintech organisations through better data management and utilization. Consumers can expect more intuitive interfaces, more valuable interaction, and rapid decision-making.

What the Startups are Doing

Unsurprisingly, fintech startups will continue their impressive onslaught in 2017. From insurance innovations to crowdfunding investment platforms to financial management services, the following year promises great things. Smaller fintech firms have been gradually earning the trust and respect of the average consumer through both radical and minor advances that provide financial improvements covering just about every aspect of our lives; bill splitting, fundraising, peer payment services, new age ‘banking,’ and much more. With regulators reviewing and revising the fintech landscape consumers can hope for a safer environment which promotes engagement with these fintech services.

Naturally, no great innovation comes without its fair share of challenges; gladly, fintech has been around long enough for many of its challenges to be identified, if not entirely addressed. 2017 will, with any luck, be a year both of advancement and shoring up as developers break through with greater originality as well as better security and distribution. It’s an exciting time for fintech, its developers, and its growing number of users.

By Jennifer Klostermann

About Jennifer Klostermann

Jennifer Klostermann is an experienced writer with a Bachelor of Arts degree majoring in writing and performance arts. She has studied further in both the design and mechanical engineering fields, and worked in a variety of areas including market research, business and IT management, and engineering. An avid technophile, Jen is intrigued by all the latest innovations and trending advances, and is happiest immersed in technology.

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