As multiple fintech companies have added billions to the already multi-billion-dollars-worth industry during the course of 2018, many analysts are positive about the rising trend of investing in various sectors of financial industry as 2019 is progressing and Q1 is coming to a closure.
While Stripe Incorporation, for instance, was rated by investors at a higher rank than nearly 250 top companies on the S&P 500 Index, other companies like Robinhood Markets Incorporation, are adding billions of dollars to their sector with enabling and offering new services to the market obviously hungry for fintech products.
In the spirit of a massive growth potential that fintech industry has showcased in the course of the last several years, analysts are emphasizing the importance of fintech industry trends coming up in 2019.
Trends to Look Out for in Fintech Industry in 2019
IPOs being issued by fintech companies is said to be the rising trend among investors interested in financial technology, and although some analysts consider that issuing a booming IPO in 2019 is a venture that won’t result with the same outcome as with fintech IPOs released in the previous period, some multi-billion-dollars-worth fintech firms are aiming at going public in 2019.
Given the rising prices in the market in financial technology and with notable growth potential, fintech IPOs may still remain “a thing” in 2019.
Moreover, experts have made a consensus on the matter of acquisitions in the fintech industry, reporting that many of the fintech startups are ready for acquisitions which matches the increased interest that institutional investors are showcasing for this sector, which is why analysts consider that a there will be a satisfying number of acquisitions made in 2019 within the sector of financial technology.
These trends are pushing the industry of financial technology towards numerous opportunities, which further affects the positive rate of growth within the sector with high hopes for the industry in 2019.
Fintech Trends 2019: Disruptive technology in financial services come with challenges that need time to solve
Disruptive technology in financial services come with challenges that need time to solve. The financial sector is increasing its investments in Fintech firms as the research suggests that customers go for the idea of on-demand finance.
This is to challenge the agility and flexibility afforded by the Fintech firms that make them lethal to the traditional structures.
According to the Goldman Sachs equity report, these young Fintech firms are expected to eat away $4.7 trillion in revenue and $450 billion in profit from the traditional financial services firms.
Future Fintech trends
In this regard, the Deloitte’s report highlights the following present and future trends:
- Trend 1: Financial firms are taking the role as venture capitalist for the new Fintech firms
- Trend 2: The potential benefits of blockchain technology continue to grow.
- Trend 3: Regulator are also heeding to these Fintech companies, but they are giving them enough laxity so that they can solve their problems on their own.
- Trend 4: The executives are beginning to understand the challenges associated with the technology.
- Trend 5: The industry is realizing that the implementation of the technology will take time.
Future trends in Fintech industry in 2019?
What are the future trends in Fintech industry in 2019? One thing which is for sure is that the Fintech industry is always innovating. It always comes up with newer and newer solutions in order to expand its reach. Similarly, in 2019 as well, there are plenty of innovations which are slated to happen in the Fintech industry. We shed some light on some of these innovations.
Currently, the biometrics market is limited in use. It is only used by financial and corporate organizations as well as banks. However, in 2018 it will bring up newer solutions which will be accessible to the common public as well. These will not just be limited to the finance industry but they will also be utilized in the healthcare, retail as well as government organizations. This will ensure that biometrics actually go mainstream.
Apple also recently revealed its plans that there will be facial mapping with the help of the technology in the latest iPhone. This can be easily used to buy the app developers.
Rules engines will no longer be compatible:
According to Moore’s Law, data has been doubling every 2 years. However, with the increasing data, the rules engines will not apply to the fraud detection departments. Instead of detecting the loophole and thereafter filling it, the banks, as well as financial organizations, will have to change the rules before the breach actually occurs. Only then, they will be able to get superior security on their platform.
Online transaction verification will be eliminated:
With most of the e-commerce consumers using their smartphones, there is no need for online transaction verification. Most of the consumers are directly logged into the application. This means that they will be able to directly verify their identity. As a result, the online verification protocols will be eliminated. If at all, some of the e-commerce stores actually use those protocols it will be based on biometrics technology. This will provide an enhanced security when it comes to conducting online transactions.
Thus, when you’re looking into the innovations in 2018 in the Fintech industry, these are some of the innovations which you have to look into. These innovations will surely be done keeping the customer at the focal point. Indeed, the experience will not only be made easier for the consumer but also safer for the consumer. This will benefit the Fintech industry as well as the consumers.