Have you noticed how CEOs, entrepreneurs and average people are all getting excited about Fintech? This is because of the potential embedded in fintech solutions to make people rich and change the way transactions are carried out. There is a wave of new technologies in the finance industry. Since there are so many inventions in the finance industry, it pays to identify trends with the greatest impact in 2018.
For the last one year, cryptocurrencies have hit the market successfully with bitcoin experiencing exponential growth. Due to the success, a number of people have emerged with various cryptocurrencies. The new cryptocurrencies are being launched on Initial Coin Offering. This presents endless choice on the crypto currency to use. Unfortunately, it is expected that some shysters will also launch their own crypto currency with the aim of ripping off some naïve investors. The good news is that the cryptocurrency market is still maturing and it’s a market to watch out for in 2018.
It is impossible to mention cryptocurrencies without mentioning blockchain. A block chain is a digital ledger that is decentralized and distributed among different users. The distribution means that no one person has the full power to manipulate the data in the ledger. It is therefore impossible for data to be changed once it is created. Blockchain is currently in use in the healthcare industry. The technology can be used in the real estate and financial industry in creating a record for each house on sale. Banks can use the information provided in the ledger while deciding on whether to give mortgage or loans to potential homeowners.
The technology uses contactless payments like implants on one’s body, modern smartphones and bank cards. NFC is already in use in some countries. Even though it still has a long way to go, 2018 might be the year when more devices will be connected to the technology. As more wearable hit the market, NFC might take advantage of the new entrants.
Although fintech is still new, there has been incredible growth in the industry and regulators are keen. As the growth continues, there is likely to be increased number of regulating bodies emphasizing on ways of regulating hardware and software. Since fintech solutions deal with people’s cash, high security measures are not an option. As long as the regulation is well done, it will lead to increased consumer confidence. The confidence will translate to increased demand and hence there will be an increase in innovation in fintech industry.
Small startups have dominated the fintech market due to their innovative capability of maintaining a good relationship with the public. However, large financial firms are now in competition with the startups to win the hearts of the public through the introduction of innovative strategies. This will create a need for the organizations to be at their best to attract most customers. The improved services will favor customers.
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