The Latest Trends in Financial Technology 2018
The rapid growth
of technology throughout the years is truly remarkable. Various trends and
technological advances has happened last 2017, especially when cryptocurrencies
like Bitcoin has become mainstream. Here are some of what you will be expecting
on Financial Technology this 2018.
technology has truly made its impact last year because of the rise of Bitcoin
and other cryptocurrencies. Blockchain technology is virtually unhackable
because of time stamps that tracks data entry in a distributed ledger. Banks will
explore options to maximize the power of blockchain to transform backend
operations. Firms are finally realizing
the huge cost savings and security benefits they can use from the distributed
Artificial Intelligence in
intelligence continues to advance, various firms are starting to adapt to it
progressively. It is still unknown how AI improves as time goes by. The projected
capabilities of AI within the next few years include:
enhancement of investment and risk analysis algorithms.
of chatbots to the point where customers will not know if they are
speaking with a customer service agent or AI.
of superior money-managing assistants, which will be engineered by AI.
or ‘proptech’ is the technology that reinvents and improves the process of
buying, renting, selling, building, and managing properties. Soon it will
somehow replace the days where customers blindly trust real estate agents in
technology helps improve the process of compliance for financial services.
Regulators are being pushed to stay in step with innovation causing to
frequently evolving compliance requirements. Regtech can cut a substantial
problem from financial service companies as it streamlines the process of
compliance. 2018 is the year of General Data Protection Regulation (GDPR),
Payment Services Directive (PSD2) and Markets in Financial Instruments
Directive (MiFIDII), so regulatory compliance is relatively important.
Neobanks and challenger banks
Neobanks are startup
banks that does not operate with a physical branch or building, like a virtual
bank, and all transactions are made through smartphones. Challenger banks on
the other hand is just the same as neobanks, but with bank licenses. In 2017
alone, numerous neobanks and challenger banks are founded, mostly in the United
Kingdom. The rise of these banks will surely be a trend for people nowadays do
their bank transactions online.