FinTech has taken center stage in the financial world. In 2019, it is expected to become even more prominent in a number of ways:
- RegTech – compliance, complexity, cost and bureaucratic processes have always stifled the development of the finance industry. But the development of RegTech (regulation technology) is benefitting from the move from Big Data to Smart Data. This, coupled with new technologies like artificial intelligence, allows financial institutions to more easily and quickly comply with regulations and internal policies.
- Artificial intelligence – bankers used to have personal connections with customers, but digitization has caused this process to become almost arcane. Artificial intelligence (AI) is looking to change that, albeit in a slightly different way. AI-driven platforms are becoming more “human” than ever before. With the ability to instantly access and analyze millions of data points, it could be used to bring back the idea of personal connections, just via a machine instead of a person.
- Blockchain – blockchain has enormous potential, and several financial institutions are planning significant investments in it. It could be used to streamline and, perhaps more importantly, secure most aspects of the financial industry.
- Financial inclusion – the very idea of FinTech revolves around facilitating faster, easier access to financial systems. FinTech developments the world over promise to open up financial services to millions who were previously unserved or underserved by traditional financial service providers.
FinTech represents the second-most significant transformation in the history of finance (the first being banknotes). It is set to completely reshape the way we think and live. What’s more interesting is that we are just at the beginning of the FinTech ride.