“Fintech”. An emerging industry deals with the development of technologies aiming to enhance traditional financial activities. It also tends to replace the sluggish traditional methods of finance. Additionally, Fintech is already seeing a huge upward rise in terms of its popularity within the financial space. In fact, according to sources more than 1000 Fintech deals were closed in Q4 of 2018 worth of nearly US $40 billion. Experts suggest that the chances of growth of Fintech industry are very high for the upcoming years.
There are Fintech experts with a different view of how this immerging industry will impact and shape future financial space. Matthew Ledvina, Managing Director of a Fintech Company based in London shared his views and discussed about some trending topics about his venture and Fintech Space.
Matthew is among one of the keen observers of the Fintech industry and regularly put a close watch on the scope of Fintech and its applications throughout the world. Recently he has investigated three major trends pertaining to Fintech that people may witness in 2019.
Fintech Trends to Watch in 2019
While the increase in the growth of Fintech has become quite obvious, following are the three major trends that Fintech will be likely to toss into 2019:
• Mobile and Digital Banking to Become More Dominant
Considering first world countries, a major proportion of people rely heavily on their smartphones for accomplishing various activities including banking. The combination of the internet and modern finance technologies have completely changed the way people do banking some 15-20 years ago. Nowadays, very few individuals pay a physical visit to the banks in order to make monetary transactions.
Some experts have already predicted that the world will see an outstanding 121% of growth in mobile banking transactions in between 2019 and 2022. Additionally, the estimation also gives a hint that 88% of the total banking transactions will be done through mobile phones.
For 2019, the use of digital banking will widen and there will be an increase in the number of banks having online banking facility and the size of fully-digitalized banks. The use of mobile and digital banking not only benefits customers but banks too. By using the technology, customers can enjoy faster transactions, 24 X 7 accessibility, and highly efficient services. On the other hand, banks also get benefits in the form of low transaction costs.
• Diversification of Fintech
Usually, Fintech is associated with the development of blockchain technologies that are mostly related to cryptocurrencies. However, in the recent year, the misconception of Fintech’s only relation with the digital currencies has come to a halt. Additionally, in 2019, Fintech will see an expansion of its scope in various other industries including, healthcare and manufacturing. As a result, more Fintech products and services will become evident in areas other than blockchain and cryptocurrencies.
• Increased use of Artificial Intelligence (AI)
Another trend that will become evident in 2019 is the increase in the adoption and utilization of AI technologies in the financial sector. The promising performance of AI technologies has already resulted in many financial institutions to use them for executing some of their operations. Furthermore, many other institutions claim that they will integrate AI technology in their framework within the upcoming year/years. According to some sources, 10 to 25 % of all the banking work will be performed by the machines in the next few years. In addition, 2019 may also bring an escalation in the development of Regtech (or Regulatory Technology) that will improve the regulatory environment for both the investors and the banks.
Matthew Ledvina is quite conscious of the Fintech trends that will surface up in 2019. He is clear about the advantages that Fintech has to offer to the finance industry. Moreover, he wants that financial technologies should be used to make the financial transactions more fast and secure.