Five fintech trends for 2017
By Alara Basul1. The unstoppable rise of AIInnovation in artificial intelligence is set to increase in 2017. AI will provide business users with access to powerful insights before they are available to them. This will be done through the use of cognitive interfaces in complex systems, advanced analytics, and machine learning technology.
Tech giants such as Adobe, Google, IBM, and Apple are already embedding components of advanced computing and are expected to have greater success throughout 2017. AI will be smarter, more efficient and more secure, catering to customer needs and delivering greater advances in innovation. Companies will explore new ways to use the technology and integrate apps with personal assistants like Apple’s Siri and Amazon’s Alexa.
The creation of smarter apps will be more effective to reaching valuable consumers, and enhance engagement which could therefore push sales in products and services that are offered. If these apps are personalised to the consumer, it will create a better service, enhance consumer experience and allow the business to test new products and services.
A recent Forrester report has predicted that artificial intelligence will drive customer insights and have access to direct insights through AI-related technology.
Billions of dollars will flow into AI startups this year, with software development efforts by both the internet heavies and enterprise software vendors alike. AI will also continue to transform and invent new business models. The majority of firms assign executive responsibilities and large corporate budgets to make data and insights a coordinated and strategic enterprise.2. Organisations are beefing up securityRisk and security is predicted to be a hot trend for 2017. The trend is top of mind for banks and businesses going into 2017 due to consumer protection, credit quality concerns, the new age of capital planning and increases in cyber threats and attacks.
Regulators have increasingly made clear that they expect banking organisations, as well as foreign banking organisations, and their intermediate holding companies to have the capabilities to access and provide high-quality data.
Banks and businesses will create greater platforms and infrastructure systems to gear up for the push of digitalisation in the fintech industry. The dominance of fintech will create greater security for banks, businesses and consumers, due to the increase of online hackers who attempt to steal financial information from them.
“As the world changes, investors will need to change with it to capitalise on the many opportunities that will be presented and mitigate any potential risks. The biggest threat to investors are the changing expectations for growth, inflation and interest rates in the US, which remains the world’s largest economy,” Federal Reserve’s CEO Nigel Green told GTNews.3. Improved security for mobile paymentsMobile wallets will lead the way for transactions this year.
In the UK, 17 per cent of all consumer payments are made through a device, and an estimated 38 per cent of digital commerce in the UK is expected to pass through a mobile device in 2020.
Mobile payments have transformed the way we pay in the past few years. Banks and businesses have shifted drastically to mobile device methods and transactions to serve the increasing appetite for easy and swift payments. Fintech firms are now making these transactions faster, secure and as convenient as possible.
A report published by NTT Data Inc. suggests that a third of consumers expect mobile money to dominate within a decade. 77 per cent of US business leaders see the cost advantages of mobile money, and 83 per cent say mobile money improves the customer experience.
A mobile-first mindset will be a greater trend for businesses in 2017. The willingness to make a mobile transaction is increased by ease of payment, and consumers are now depending on mobile transactions to purchase goods and services.4. Contactless spending will increaseContactless spending saw a 166 per cent increase year-on-year from 2015 to 2016. Barclaycard’s research found that 50 per cent of Brits now make a contactless payment at least once a month. Just over a fifth (21 per cent) plan to increase their contactless usage. According to the latest data from the UKCA, there are now 100 million contactless cards in circulation.
Consumer habits will gradually change and shift to increased methods of mobile and digital banking.5. Wider distribution of blockchain servicesBlockchain will gain further momentum in 2017. Last year we predicted that 2016 would be the year of the blockchain boom, and this year is likely to keep things going for the cryptocurrency.
The price of bitcoin is predicted to increase with the direct correlation to the dependency on a cashless society.
Deloitte conducted an online survey of 308 senior executives at US companies with $500m or more in annual revenue to find out about corporate sentiment towards blockchain technology. The survey found that 28 per cent of respondents had invested $5 million or more in blockchain technology, while 10 percent had invested $10 million or more, according to CNBC.
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