This year’s Global Financial Forum takes place on 11 March 2019 and will bring together leaders from the international financial community to explore ‘Unlocking Opportunities in a Changing World’
Just one of the many topics being discussed at this year’s Forum (which GEM is delighted to be the official event partner of) is FinTech Predictions for 2019 and Beyond. Here we have a stab at it ourselves and take a look at the hottest technology trends in financial services that experts are predicting will change your FinTech business this year.
1. Platformification/Banking As A Service/Digital-Only Banks
The way people interact with money is changing, and banks should meet the demand for data-driven, secure, real-time platforms that provide excellent customer experiences. A simple definition of banking as a service is providing banking services outside traditional brick-and-mortar points, letting customers do business via mobile devices and the web. Due to the growing segment of tech-savvy customers, the future of banks will be:
- driven by AI
2. Digital Identity & Biometric Technologies
Due to the expansion of AI and big data, the traditional identification methods like a passport, driver’s license, and proof of address have become old-fashioned if not insecure. To survive in our digital age – and keep money safe – we’ll need a decentralised, smart, and individually controlled identity system.
Biometric technologies that FinTech can use for security:
3. The Cashless Economy
Over 70% of payments are fulfilled via mobile devices. Sixty-seven percent of millennials don’t have a credit card. These days, smartphones are often the only way people shop, entertain, do business, or do anything digital. Contactless cards are seen as the new normal.
4. eCommerce Changing Into vCommerce
Commerce has been transforming since the adoption of digital services, from eCommerce through mobile commerce to a new era of voice commerce, or vCommerce.
At the moment, 36% of homes have a voice-enabled device like Alexa. In a year or two, voice assistants will evolve to handle banking services not only through mobile banking apps: customers will be able to conduct voice-enabled financial operations via wearables, cars, and home automation hubs.
5. GAFA To Become Retail Banks
The young generation is excited about the possibility of banking through non-traditional financial organisations. Amazon? Sure! Facebook? Looks great! Traditional bank? Leave it to my grandma. GAFA (Google, Apple, Facebook, and Amazon) have millions of customers, the credit card data of those customers, and can offer highly tailored products.
6. 5G & Cloud Computing
Cloud-based technologies are growing in popularity as financial institutions aim to reduce IT costs and improve scalability. In the next three to five years, cloud technology will be the focus of financial institutions.
The critical advantage of 5G isn’t even its speed – and we’re talking about downloads of over 1Gbps – but rather its low latency. This will mean rapid real-time mobile user experiences and zero wait time for payment processing. As one of the top FinTech industry trends, 5G will connect more devices at lower power, at lower cost, and with greater reliability.