This is due in large part to significant fintech investments, as more and more people are embracing the idea of on-demand finance.
But how can you make the most of fintech and ensure your business doesn’t get left behind? Here are some of the biggest trends you can expect in 2018 that will freshen up your fintech knowledge.
The rise of robo-advisors
Because human advisors only have so much learning capacity, AI-powered robo-advisors could soon be providing the soundest financial advice based on mathematical rules or algorithms. They may also help select investments, build portfolios, and make automatic trades, reducing your tax bills and requirements.
Consulting firm A.T. Kearney believes that assets under management by robo-advisors will grow by 68 per cent annually to a whopping $2.2 trillion in the next five years. So, with robo-advisors and automated wealth management services taking on more responsibility, human advisors will need to step up their game.
“Blockchain also creates efficiency,” says Prakash Santhana, managing director, Deloitte Transactions and Business Analytics LLP.
“Payment transactions typically go through a central intermediary that uses several steps to authenticate and authorize the person who’s allowed to send that value, the transfer of the transaction details, and the actual settlement.”
Greater payment security
Despite the fact most people are comfortable managing their money and business online, security concerns will always likely exist with mobile and cloud computing. After all, a number of high profile cases of hacking has lead to market demand on stronger security and better infrastructure.
Biometrics could well be the future of fintech security. Technologies such as face and fingerprint recognition are now commonplace, adding an additional layer of security that not only protects financial information but also makes consumers feel safer.
It eliminates some of the drawbacks of passwords as well, which for many people are difficult to come up with and easy to forget.
Implementation by regulators
Instead of simply responding to fintech trends like blockchain, regulators all over the world are actively looking to capitalize on it. For example, in the United Kingdom, Australia, and Singapore, regulators are testing blockchain scenarios and identifying how it could be used to solve problems.
In the United States, interest in blockchain continues to grow, with several bodies approaching the subject from a regulatory point of view. “The challenge is balancing innovation with risk and controls,” notes Santhana. “We’re in the initial observer phase. There’s no formal guidance, yet, in this space.”