Fintech is a new area evolving and drawing attention. Every year Fintech trends change, but it always tends to be qualitative innovations. Following up on the newest tendencies, we formed the top 5 trends in Fintech to watch in 2019.
What Are The Top FinTech Trends for 2019?
1. Finance Goes Mobile
The financial sphere is becoming more client-focused. As a result, mobile technology is more entrenched in this sector. Like many others, the finance industry is driven by mobile technology. And in the future, this tendency will continue to rise. There are predictions that by 2019 mobile banking and payments will cross the $92 billion point. Mobile Fintech simplifies some crucial financial processes for customers, thus saving them time. For example, mobile allows people to manage their finances without visiting the branch. Customers crave for technologies that will ensure accurate data management, eliminating human intermediates. Mobile app N26 is a vivid example of such changes. This is a financial application that enables the management of personal expenses via a mobile device.
2. Millennials are The Key Audience
Millennials are the largest part of financial consumers. This group has already reached the age of significant financial decisions. Thus, they become the target audience for all banks and financial institutions. These people are involved in digital technologies and do not imagine their lives without mobile communication. To connect with millennials, banks need a comprehensive approach to engaging them as customers. 67% of Millennials want digital banking tools from their banks. This stat shows a great gap between the Y generation and financial institutions. At the same time, this is an incredible opportunity.
Yet, financial companies are taking some steps toward engaging Millennials. They, for example, integrate financial services into popular digital tools. An example of a startup that matches the needs of the younger generation is Paykey. It is the first payment keyboard. The startup is designed to fix the gap between applications and social networks. Thereby making banking operations more effective. PayKey technology allows banks to offer P2P payments through any social network or messenger.
3. Shift to Conversational Banking
4. Biometric Identification Comes in Handy
After moving to mobile, security became the top priority for financial services. Banks have started to refer to biometrics to ensure full data protection. Banks try to find technologies to reduce friction and make customer’s life easier. It could be a combination of voice, face identification, and fingerprints. Biometrics force out traditional means of security. For example, customers with newer iPhones model can ditch the password for fingerprints or face scanning.
It looks like biometric identification is becoming mainstream in the financial sphere. Although nearly 80% of respondents from the financial sector already perceive biometrics as mainstream.
5. The Blockchain is Becoming Mainstream
Blockchain technology is at the top of popularity in the Fintech industry. Due to security reasons, financial institutions switch to blockchain solutions in their operations. This makes blockchain an important tool for building trust between consumers and businesses. In 2018 blockchain technology will be in great demand in the financial industry. According to a PWC survey, almost three-quarters of the financial services industry plans on adopting blockchain technology by 2020. Such popularity will benefit specialists who have strong knowledge in this area.
To sum up
FinTech has reshaped the traditional financial services sector, and technology will continue disrupting the industry in 2019. We have witnessed how the general concept of finance transformed. Fintech opened the way for institutions of the new generation: startups, and digital banks, which approach their costumer using unusual tools.
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