My Fintech Predictions for 2017

My Fintech Predictions for 2017

Phil Siarri

Principal Advisor at psiarri.xyz

Views 1476

My Fintech Predictions for 2017

30.01.2017 08:30 am

The rapid development of new frameworks is expected to give life to some interesting Fintech trends during 2017. Here is a list of some of the things we could experience throughout the year.


Further robo-advisor adoption

Historically you went to your bank, met your advisor and he or she took a commission in exchange of advice and money management. However this notion is questioned by many and challenged by the rapid rise of robo-advisors. Such convert big data into meaningful data in order to make life easier for investors (quite often with less fees). Based on a report from MyPrivateBanking last year, 43% of high-net-worth individuals in the UK and US are already using online wealth management tools and 70% think automated investment tools can positively affect their wealth manager's advice.

More Blockchain test cases

“Blockchain” has been a hot topic in 2016 with many banks having tried to launch their own blockchain ventures yet struggled to make significant progress in an industry that has historically kept all information safely guarded. The DTCC, a US post-trade services group that processes more than $1,500tn of securities a year, will start using technology from IBM and US blockchain start-ups R3 and Axoni as the backbone for its next-generation trade information warehouse (the unit settling payments in credit default swaps in multiple currencies). The project will begin early this year and represents a major test for blockchain implementation. One can be certain such will be watched closely by a variety of industry stakeholders.

RegTech moves deeper into the asset management infrastructure

Back and middle office financial services infrastructures will experience further changes as Regtech moves deeper into such frameworks. RegTech will deliver regulatory requirements faster and more cost-effectively than existing systems. For asset managers, it will be particularly meaningful in solving regulatory data management challenges and complying with reporting cycles.

Growing cybersecurity needs leads to partnerships

Cybersecurity has become a major concern for many business sectors and will remain throughout 2017. Data breaches that took place at major retailers, government departments and financial services firms are likely to continue. Hence one can expect Fintech companies to establish meaningful and long term partnerships within traditional sectors. Back in September, a partnership was announced in the UK between the Department for Culture, Media and Sport (DCMS), the Government Communications Headquarters (GCHQ) and the nation’s top tech start-ups to develop new technologies aimed at protecting the country from cyber attacks.

Fintech for the unbanked

It is not secret many developing nations are “unbanked” or rather “underbanked”. Deficiencies in terms of infrastructure has contributed towards that fact. Mobile phone adoption, however, has been strong worldwide. This led to the success of P2P payments solutions such as M-Pesa (particularly in Kenya); allowing for more affordable payments via cellphones. Over KES1 trillion (roughly 10 billion USD) of mobile money deposits and withdrawals took place in the country between July and September 2016 with M-Pesa maintaining a large lead (67% market share). We can definitely expect such technologies to expand to other geographical areas and competition to ramp up.


The world is full of surprises, perhaps geopolitical events will influence the direction of the entire Fintech ecosystem ... for better or worse.

Research, thoughts and opinions are my own

 

Latest blogs

N/A ReliaMax

College Dreams? Here’s How to Get Accepted

Higher education in the United States is not just about getting accepted, it is about where you get accepted. Sure, there are options, there are seemingly endless options - from community colleges to Ivy League schools and everything in between. The Read more »

Bobby Gill GCWealth

Bobby Gill: 3 Ways Fintech is Helping Small Businesses During the Pandemic

Image Source: Pixabay. Back in April, the US oil prices sank to a 20-year low. In the UK, road traffic levels hit a 70-year low. Worldwide, due to lockdown, retail, travel, and restaurant bookings have dropped by 85%. More than 430 million Read more »

Christa Ardley Bitstocks

Bitcoin and blockchain without the b******t

An industry once viewed by the general populace as a haven for criminals and online scammers, and still somewhat marred by fractious in-fighting, Bitcoin and blockchain are gradually casting off their outdated negative reputation; as the focus Read more »

Otabek Nuritdinov Safenetpay

Beyond Payments Services

    Why it really matters for small for medium-sized enterprise (SMEs) to choose the right payments services provider. Strategic planners in the financial services sector often define their business in terms of products that Read more »

Chak Kolli DXC Technology

How Can Insurers Realise the True Value of AI?

As Artificial Intelligence (AI) and digital transformation find their way into every aspect of our daily lives, we are gradually seeing changes taking place in different sectors. Progressively, AI is permeating the insurance value chain and it is Read more »

Related Blogs

Bobby Gill GCWealth
Christian Wiens Getsafe

Why Challenger Insurers Are Doing Better Than Challenger Banks During the Coronavirus Crisis?

The 2009/10 financial crisis hit insurers much less than banks. Challenger banks such as Monzo, Revolut, Starling Bank and N26 took advantage of the increasing scepticism and dissatisfaction of customers. With their promise of "no bullshit banking" Read more »

Shaun Puckrin Global Processing Services (GPS)

Balancing Innovation and Regulation: FinTech Trends and Challenges

The financial services industry has been ruled by traditional banks for decades, but with the financial crash in 2008, regulation and microinspection paved the way for younger and more innovative competitors, leading to a new era of challenger banks Read more »

Liam Huxley Cassini Systems

Cassini Commentary: UMR Implementation One-Year Delay

As our clients and firms across the buy side begin to process the recent BCBS and IOSCO recommendation to delay by one year the implementation of phases 5 and 6 of the uncleared margin rules (UMR), we wanted to share why Cassini Systems supports Read more »

Huw Kwon Cognizant

Entity v process: The collective power of AI

Most, if not all, financial institutions are exploring how the range of new and emerging technologies collectively known as artificial intelligence (AI) can improve their performance across a range of activities and processes.  AI offers methods and Read more »

Magazine
ALL
Free Newsletter Sign-up
+44 (0) 208 819 32 53 +44 (0) 173 261 71 47
Download Our Mobile App
Financial It Youtube channel