Banking & FinTech Predictions for 2017
The Fintech industry showed much promise in 2016; a lot of promising startups have been popping up in several parts of the nation, forging innovations and driving new initiatives across the sub-domains of credit, lending and payments. 2017 is poised to be a breakout year for the Fintech sector, holding immense promise in the eyes of experts.
Let’s check out some of the Fintech predictions for 2017.
1. Banks to Turn Acquirers
The bank versus startup battle will end. Banks will probably turn their attention to buying rather than building their own product portfolio. A Goldman Sachs may just acquire a Prosper or a Lending Club to bolster its Marcus lending platform and expand its service portfolio. Virtual assistants, chatbots and similar technologies are set to steer customer interaction with banks for the better. Traditional banking will give way to non-personal banking.
2. Bank Branches to Evolve
Branchless banking is well on the cards in 2017. We will see more self-service booths and check-in counters. Banks may begin to have interactive ATMs, where you can speak to a customer care officer via video conferencing. More automation and migration to digital channels are in the offing.
3. Data Insights
Big data was a Fintech buzzword in 2016. Advances in machine learning have made it possible for banks to understand consumer behavior better. Such technologies will become more refined, as financial providers will increasingly recognize the importance of the in-depth analysis of client data. It will help bankers come up with better customized products for each customer.
4. Blockchain Hype will Fade
The blockchain hype will start fading. Banks have realized that it will take years before blockchain projects can turn into reality. Blockchain startups struggling to attract capital infusion are likely to fold up. Some blockchain rollouts will happen, but not in the Fintech space. Supply chain management and biotech could see some successful blockchain launches.
5. Cryptocurrencies to Gain Footing
Bitcoin, the internet currency, will be back in reckoning and will continue to grow. It is increasingly becoming accepted as an important currency for virtual international transactions. Some emerging economies, including India, China, and Venezuela, have raised awareness about bitcoins.
6. Digital Ecosystems will Take Root
Digital ecosystems have to find a firm footing to stay relevant to customers. In 2017, it’s all set to blur the lines between conventional industry boundaries, and cover ecommerce service and payments as integral parts of daily customer experience. According to the World Economic Forum, the digital economy may disrupt existing industries this year.
7. Security and Privacy to Become More Important
With distributed ledgers, digital ecosystems and virtual networks handling huge volumes of information, data security and privacy are all set to assume more importance. The upcoming General Data Protection Regulation (GDPR) will lend people greater control over how their personal data is used by third parties. The European Commission (EC) has already charged Facebook for sharing misleading information on sharing user data with WhatsApp.
8. Fintech Banking Charters
The US Government is trying to catch up with the UK and EU when it comes to fintech. The OCC has shared plans about issuing limited-use bank charters for fintech firms. There is a lot of unknowns so far with it but it is a major step in leveling the playing field between technology companies and banks.
It will be interesting to see how the Fintech sector proliferates across other business domains in 2017. There has been lot of noise about Fintech last year. It’s time to convert those words to action.
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