Fintech has managed to transform the industry of financial services over the past few years and will continue to do so in the next few years through better and more innovative products. Here are a few trends you can expect in the Fintech industry in 2019:
More AI and RPA solutions in development
More than 75% of financial service institutions will start using RPA software applications by the end of 2019. This will eliminate built-in human inefficiencies and increase the speed of completing tasks. Robots will be trained to handle various tasks of various departments to increase efficiency and reduce errors. Tedious but repeatable tasks will become faster and more accurate with RPA programs taking over.
Mobile payments to grow globally
With more and more people using smartphones the volume of mobile payments is expected to grow by 60% across the world, in the next two years. A smartphone with an internet access makes anyone eligible to become a part of the financial system, eliminating the need to open a traditional bank account. 2019 will see a rapid growth in mobile banking in areas that are currently reliant on technology. More security will be added to mobile payment solutions through the use of Block chain technology. Adopting 5G technology will reduce transaction times and latency and help the network in handling large amount of transactions simultaneously.
Fintech Application Development to Improve
More than 75 percent of the large banks will start engaging in developing Fintech applications via open banking in 2019. This will be driven by PSD2, a regulatory directive of European Union, designed to solicit participation from non-banks, increase competition within the industry, and protect users of payment solutions. The wide-spread use of the concept of open banking has led to a growth in financial product development, thereby increasing competition in banking and enhancing consumer protection. This has also led to a lot of innovation in the financial services sector. More and more products will be creating utilizing the data that banks will be releasing in a secure and standardized manner. Nevertheless, banks will still control how this data can be used and even get something out of it.
Fintech Companies to become the Norm
From the role of disruptors Fintech companies will now move on to becoming partners of the financial services industry. With powerful regulatory bodies regulating rules to govern Fintech, Fintech companies will now start contributing towards the evolution of the financial services industry by partnering with traditional financial services institutions. The traditional financial services institutions will stand to gain by such partnerships by leveraging advanced technological tools and resources that can help them complete promising projects.
Regulatory technology to increase
The investment of Regtech or regulatory technology in the financial services sector is likely to increase 500% by the end of 2020. This will ensure better regulatory compliance and make the financial services sector work in the direction of protecting the interests of their consumers.
If you are a Fintech startup looking to establish your business in 2019, knowing these trends will put you on the right path. You can read the company profile of Yellowstone Capital LLC if you are looking for funds to expand your business. Have a plan in mind and move ahead with focus.