Named key fintech trends of 2018
2018 presented several fintech trends that set the direction for further development. The main thing that is worth noting is the great interest in the industry from business and private users. People are interested in getting banking services in a couple of taps on the screen, without a huge number of papers and regular visits to financial institutions. So, what did we learn at the end of 2018? Let’s understand more.
Leading fintech trends
Trend No. 1. Cryptocurrencies have problems. The digital asset industry faces serious challenges. There are dozens of examples. The most striking was the ban for Indian banks to cooperate with trading platforms where crypto traders worked. One would think that there is nothing good. But just India experienced the least trouble after the depreciation of bitcoin. Nevertheless, a shadow exchangers and cryptoservices continue to function in the country. However, the way of their legalization is not visible.
Trend No. 2. Convenience in obtaining loans. The business is not able to develop without credit. This is especially true for small businesses. But to get money in the Bank, you need to spend a lot of time, fill out a ton of papers, make dozens of visits to the office. And without a guaranteed result. Many companies simply closed, because one day they saw the sacred word: “Refusal.”
Now entrepreneurs do not have such problems. All papers are scanned and sent by e-mail. In rare cases, businessmen are forced to go to the department, but do not have to spend several hours. These advantages became possible after the integration of artificial intelligence and big data systems.
The banking industry is critical of lending to small and medium-sized businesses. There are many “hidden pitfalls” generated by the opacity of their activities. But let us turn to statistics. From the beginning of 2016 to March 2018, the number of loans issued to organizations fell steadily. Now there is a positive trend. Thanks to this, hundreds of startups were able to release their product to the market.
Trend No. 3. Cooperation between fintech and banks. Financial institutions keep up with the times, gradually introducing innovative services. Analysts understand that the outdated model is dying, and those who do not adapt to the realities are bankrupt. Therefore, dozens of companies around the world have invited fintech staff and invest billions of dollars in development. They do not consider technology as competitors, but rather see them as reliable partners contributing to the prosperity of the business.
Trend No. 4. Mobile wallets are coming into fashion. Just 5 years ago, such services were very difficult to apply at least somewhere. Today, programs replace bank cards. Through the terminals they pay for parking, transportation, shopping, utility bills and much more. Experts predict the emergence of applications that will make traditional financial institutions useless.
Trend No. 5. Good attitude on the part of states. Unlike the crypto industry, which is not accepted by countries, they cooperate with fintech and create the best possible conditions. The largest blockchain service in the world is developed in India. Munich and Singapore plan to become fintech capitals of the planet. Even in the post-Soviet space, legislation is being changed.