Fidor Bank: Predictions For 2018

Fidor Bank: Predictions For 2018
06.12.2017 08:59 am

Fidor Bank: Predictions For 2018

Payments , Banking

1. Payment Services Directive (PSD2) Finally Goes Live

“It has has been a long road to PSD2, given that it was approved in November 2015 by the Council of the European Union. However, it will finally be coming into force in January 2018 and that means that banks must open up their customer data to third parties on request - whether these third parties are their direct competitors, challenger banks or nascent fintech startups.”

“For everyday consumers, much will change next year due to this. We’ll see a huge increase in banks seeking to become a ‘one-stop shop’ for their customers. In realitythis means that banks will provide wide access to a range of services, from the ability to pay from bank accounts at a touch of a finger to accessing integrated comparison tools to find the best banking deals.”

“Thanks to PSD2, banking as a whole will become much more personalised. The simple fact is that data is now as valuable as gold to financial organisations, and they need to treat it as such.”

2. RegTech Takes Off

“2018 is the year when RegTech really takes off, thanks to two key pieces of European-wide legislation coming into force, MiFID II and GDPR.”

“Due to the need to be fully compliant with these new rules, financial organisations will be looking at immediate options to help them decrease their regulatory risk and costs, while also improving the customer experience next year. The new regulations will, in future, have a huge effect as financial organisations’ relationships with regulators will rely upon real time data to be shared to improve and speed up risk management and market stability, all through the power of APIs.”

3. “Real AI” Really Progresses in 2018

“2017 has been the breakout year for artificial intelligence (AI), as the technology moved from the backroom of financial organisations to actually pointing to how banks will operate in the future.”

“Next year will see this progress further as the first real AI based consumer products and solutions come to the fore, in the form of responsive chatbots, which will become the new norm for banking customers around the world. Meanwhile, in the background, such technology will be heavily used to collect and organise data, which is especially needed with the implementation of PSD2 and will ultimately lead to more personalised banking for consumers, not only improving the customer experience but ensuring that the bank remains relevant by offering consumers the right offers at the right time and supporting them with proactive notifications whenever they encounter a situation that require the support of the bank.”

4. SME Banking Comes To The Fore

“While this year the UK government struck a deal with Britain’s biggest high street banks to extend millions of pounds of lending to SMEs, loan applications actually fell.”

“However, due to the challenging environment that European SMEs will find themselves in next year, we’ll likely see more players enter this market, which already picked up since last year, especially from new innovative fintech companies. These challengers will be focused on simplifying onboarding process, facilitating access to banking services and cutting down the red tape faced by SMEs in applying for a business loan, especially around lengthy and complex application procedures. With more players on the market, it will also become the time to find the right business models for those players, those being potentially different across geographies”

5. Cashless Society Continues. Blockchain Will Help

“Despite the UK introducing new one pound coins and ten pound notes this year, we’ll see a further acceleration to a cashless society, not only in Britain but globally in 2018. This profound shift in how people pay for goods and services will also have an effect on the rise in Blockchain adoption. As all money can more easily be traced to its rightful owner and beyond government’s control, Bitcoin will continue to rise in popularity and also valuation.”

6. Banking As A Service (BaaS) Goes International & The Rise Of The Marketplace

“Banking As A Service (BaaS) will take off globally next year, as to date it has been primarily driven in Europe. What this means is that we’ll see an increasing number of companies competing to provide ‘white label’ banking products to organisations struggling to keep up with the digital revolution. Despite a proliferation of competitors globally in this area next year, established players, such as Fidor Solutions, will appeal more broadly due to a track record of getting it right.”

“In tandem with white label products taking off next year, banking marketplaces, which offer consumers a host of different financial products will be a natural byproduct of this. They offer banks a huge opportunity to remain relevant and remain the main contact for consumers in terms of their financial needs as marketplaces will have all the financial products that a consumer could want, all in one place. Fidor Solutions, to keep ahead of this trend, will also be launching its own marketplace globally, Fidor FinanceBay in 2018, after a successful roll-out of its Beta version.”

Related News

mPOS Solution Cracks Down on UK Train Network Fraudsters

Fare evasion costs UK rail operators in the region of £240m annually. Tackling fraudulent travel by those travelling without a valid ticket, providing false information or more... Read more »

At the forefront of 3rd Nextgen Payments Forum: the world’s first blockchain powered conglomerate - OpenLedger

The 3rd Nextgen Payments Forum, taking place on 27-28 February 2018, in Malta, will be providing delegates with a fully-loaded programme over two days with 14 talks and... Read more »

Standardized Accounting and Payment Processing for E-commerce at Arvato Financial Solutions

With its standardized accounting and payment processing solution Aqount, Arvato Financial Solutions now allows retailers to take complete control of all their financial... Read more »

Google's P2P Payments App Tez Now Handles Utility Bills

Paying bills takes time, whether it's queuing, hopping around to multiple offices, or jumping between apps. 

Read more »

nexo standards Becomes First Association to be Granted ECSG Conformance Label

nexo standards, the open, global association dedicated to removing the barriers present in today’s fragmented global card payment acceptance ecosystem, has become the first... Read more »

TiENPAY Limited Announces Expansion Into South Korea With New Joint Venture

TiENPAY Limited announced their new subsidiary by means of a Joint Venture: TiENPAY Korea Co., Limited. TiENPAY Korea will serve as TiENPAY's first foray and springboard into... Read more »

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