FinTech is one of the most groundbreaking and promising areas for innovation and investments. In 2015, corporate investments in FinTech amounted nearly $7.6 billion and this figure is expected to grow throughout 2016, according to Nate Matherson of Business.Com. So let’s consider a few main FinTech trends that promise to gather a lot of attention this year.
Mobile & Digital Banking Increase
Advances in computer technology require new innovative solutions. Millennial generation is gradually moving away from using banks in the traditional sense and is quickly adapting to mobile banking that guarantees time saving, ease of use, 24/7 availability and low fees. This trend will continue to evolve in 2016 as the number of customers and market players is growing every day.
Institutional Adoption of the Blockchain
The emergence of the Bitcoin cryptocurrency divided concerned people into two camps. Proponents emphasize on the revolutionary potential and innovation of the system of electronic cash. Opponents believe Bitcoin is a fraudulent system that is nothing else but the bubble in its essence. They also argue that cryptocurrency can’t compete with the banks and governments, and it’s hard to disagree. Confirmation adverse party of the system was dropping currency prices from $1,100 in 2013 to $200 in 2015. But it’s also hard to disagree with supporters of Bitcoin when it comes to innovative technologies that drive Bitcoin evolution – the blockchain, in particular.
So how does the blockchain work? Decentralized computer network analyzes and adds each transaction to the growing chain of data records that are protected from falsification. This method of data processing and storage is more reliable and much cheaper because it enables banks to make transactions without an intermediary. Thanks to the blockchain, banks will be able to save about $ 20 billion per year by 2022.
Adoption of Mobile & Contactless Payments
The number of consumers choosing to pay with their mobile phones is increasingly growing. The results of GPShopper research showed that more than 60 percent of buyers have shopping apps installed on their smartphones. But not only online purchase applications are on great demand. There’s a long anticipated possibility of payment for goods and services directly from the place of receipt using a mobile phone. Such apps as Apple Pay, Android Pay, Google Wallet are already giving us such an opportunity and in 2016 this will only trend upward.
The Rise of Robo-Advisors
Robo-advisors became innovative solutions in the digital world and have fully automated management of the investment portfolio without human intervention in financial planning. Betterment and Wealthfront robo-advisors move to the fore on the US market.