Five FinTech Predictions for 2018

Predictions: “Methods including water divining, astrology, numerology, fortune telling, interpretation of dreams, and many other forms of divination, have been used for millennia to attempt to predict the future. These means of prediction have not been proven by scientific experiments.” (Wikipedia)

I have no experience in any of the above but it seems like the time of year when every man and his dog decides to make a prediction about the future. I thought I might as well have a crack at predicting what I think might happen in the world of FinTech during the next year…

 

 

1) Aggregation

We have seen challenger banks like Monzo and Starling roll out current accounts, FX payments companies like Revolut tackling foreign currency transfers and ‘robo-advisers’ like Nutmeg manage digital investments.

These FinTech offerings have matured to the point where we have a range of choice within each sub-sector; there are multiple companies that will give you an app for whatever you want to do with your money. But consumers are starting to want ease of use more than shiny and new.

2018 will be the year of aggregation and convergence. The Monzo and Starling strategies are different but seem to be heading for a similar end goal: marketplace banking. People love choice and it’s great to have different service providers giving you the best deals on all your financial products. But do I really want one app each for my mortgage, my current account and my international currency conversions?

One company leading with this trend is Curve – the card that could replace all your other cards. You can choose which card it becomes, and even “time-travel” backwards to change the card you used for a transaction, in case you used one that has no money on it!

This is just one example of what I think will be a bigger convergence of FinTech apps in 2018 – because we all like ease of use as well as greater choice.  (If you’re reading this Curve, it’s my life goal for 2018 to get your card to simplify my ridiculous wallet, so please send me one!)

 

2) Crypto for the masses

Bitcoin prices went crazy in Q4 of 2017, everyone wants a piece. Hovering close to $20,000 for one bitcoin, the price of this cryptocurrency drove Coinbase to be the no.1 downloaded app in the US App Store at a certain point in December.

Demand is there, but is where’s the supply?

It seems most people are seeing the meteoric price rises and want to HODL (hold on for dear life). But more and more very early buyers are cashing out in small amounts – they have made ridiculous sums already. There are also miners making money who will be selling bitcoins.

The problem with the state of crypto now is that it is difficult to understand and difficult to enter into the space as an average person. You can trade certain better-known cryptocurrencies on platforms like eToro, and Coinbase is the top app for buying and selling. But it has high fees and gives you no control over your own private keys.

2018 will be the year when more consumer-friendly applications emerge to enable people like you and me to actually use cryptocurrencies.

That’s very exciting in itself, but remember to research and understand what you’re buying if you’re planning on putting money into these things. If it all goes tits up, there’s no helpline or customer service desk – your money will be lost.

 

3) PSD2 (EU) & Open Banking (UK) implementation

In January 2018 the EU’s second Payment Services Directive will come into effect. I wrote about PSD2 and Open Banking (the UK’s implementation of open data access in banking) in this post a few weeks ago.

PSD2 will let you authorise any registered and approved company to access your bank account and either give you information based on your data, or make payments on your behalf.

It’s likely large technology companies like Facebook, Google and Amazon will jump in here, harnessing the huge volumes of non-financial data they already have for customers to offer them an even more personalised service.

Smaller FinTechs also have an opportunity to provide new services to customers. But no one really understands what’s going on with PSD2 or Open Banking. Unless you work in finance you might not even have heard of it.

So unless banks and regulators start educating people on how things will change, we won’t start seeing the effects of PSD2 because there won’t be the demand for the new things that could be offered.

 

 

4) Slow down of first-time adopters

Monzo has been going over 2 years and has amassed more than 470,000 customers in the UK during that time. Revolut has over a million customers across Europe. Many of these people are young, tech-savvy and interested in FinTech, some may even work in the sector. I predict that there will be a point in 2018 when this huge customer growth slows down.

Because after the millennial FinTech lovers, who will bother switching to a digital bank?

The Current Account Switch service has been around since 2013 in the UK and the website says over 3 million accounts have been switched since then. But most people find it painful and complicated to think about dealing with their finances. FinTech offerings are supposedly there to remedy that, but I’m not sure everyone’s got the memo… Yet.

I am a FinTech fan (obviously) and even I wouldn’t have made it into the ‘Super-user’ category in EY’s FinTech Adoption Index 2017 (using 5 or more FinTech services).  So there will be a slower growth curve I suspect in new customers rushing to FinTechs next year.

This is why I find Starling so interesting… Because according to Julian Sawyer’s (the COO) talk at FinTech Connect Live a couple of weeks ago, they want to target people who currently bank with one of the larger incumbent banks and who would like to switch to a digital offering.

Not the young techies who want the cool new FinTech app and the bright coral card this year, moving onto the future cool new thing next year. That’s the real challenge for FinTechs – after the first wave of adoption – can you attract everyone else?

 

5) Commercial use and adoption of blockchain technology (past POCs)

2018 will be the test of blockchain technology in enterprise across different industries – not only financial services. Both public, permissionless and private, permissioned networks will be implemented by large corporate organisations beyond the Proof of Concept phase we have seen to date.

This may be accompanied by high-profile ‘failures’ – for example hacks or operational issues, but I think 2018 will be the year that people see the potential of blockchain technology in a more concrete way.

On a smaller scale, startups will continue to raise funding and ICOs probably won’t go anywhere. Some people have predicted a decrease in ICO popularity in future, which could happen as regulators globally start making more pronouncements and weighing in.

But equally the regulation and adoption of best practices and standardisation of ICOs might make it an attractive way to raise funds for companies that were previously nervous of this emergent area.

Therefore 2018 might not be the year of ICO decrease, but of a higher quality of ICO in the market. You could argue this necessarily means fewer ICOs, if you think the large majority are scams, but I’ll leave that up to you!

No one knows how to predict the future (Brexit, Trump and Bitcoin are all good examples), despite the ‘millennia’ that we have apparently been practising for. At some point during 2018 we can come back to this post and see whether I was at least partly on track or just completely nuts!

112 Trackbacks / Pingbacks

  1. buy cialis online no prescription
  2. buy cialis
  3. tadalafil generic
  4. sildenafil citrate
  5. sildenafil 100mg coupon
  6. buy viagra
  7. cialis
  8. viagra
  9. sildenafil 100mg
  10. cialis generic
  11. cialis coupon
  12. cialis 20mg
  13. levitra
  14. generic cialis
  15. cialis online
  16. tadalafil 5mg
  17. tadalafil 20mg
  18. viagra tablets
  19. sildenafil
  20. tadalafil
  21. cialis dosage
  22. cialis prices
  23. cialis tablets
  24. viagra vs cialis
  25. generic viagra
  26. viagra connect
  27. viagra without doctor prescription
  28. viagra natural
  29. cialis online without a prescription
  30. online prescriptions without a doctor
  31. cialis vs viagra
  32. tadalafil 20 mg
  33. cialis 20 mg
  34. cialis 5 mg
  35. cialis pills
  36. cheap cialis
  37. cialis coupons
  38. cialis canada
  39. viagra pills
  40. viagra 100mg
  41. viagra online
  42. viagra prices
  43. viagra generic
  44. generic viagra 100mg
  45. viagra coupons
  46. cheap viagra
  47. generic viagra available
  48. buy viagra online
  49. viagra tablet
  50. sildenafil 20 mg
  51. sildenafil 100
  52. buy biaxin
  53. buy ceftin
  54. buy chloromycetin
  55. buy biaxin online
  56. buy ceftin online
  57. chloromycetin
  58. buy cordarone
  59. cialis 20mg generic
  60. generic cialis 20mg
  61. generic cialis available
  62. generic cialis tadalafil
  63. female viagra
  64. sildenafil tablets
  65. prednisone 20 mg
  66. buy sildenafil
  67. sildenafil generic
  68. viagra doctor prescription
  69. sildenafil 50 mg
  70. sildenafil coupons
  71. sildenafil 100 mg
  72. sildenafil citrate 100mg
  73. buy cialis online
  74. cialis tadalafil
  75. sildenafil citrate tablets
  76. fluoxetine 20 mg
  77. prozac generic
  78. bactrim ds
  79. biaxin antibiotic
  80. ceftin antibiotic
  81. cephalexin 500mg
  82. ciprofloxacin 500mg
  83. fluconazole 150 mg
  84. levofloxacin 500 mg
  85. cefdinir 300 mg
  86. bactrim antibiotic
  87. azithromycin 250 mg
  88. baclofen
  89. 100mg viagra without a doctor prescription
  90. natural viagra
  91. viagra on line
  92. over the counter viagra
  93. female viagra pills
  94. viagra for men
  95. viagra for women
  96. viagra without a doctor prescription
  97. viagra without a doctor prescription usa
  98. viagra medicine online order
  99. viagra without doctor prescription usa
  100. cialis generico
  101. cialis generika
  102. tadalafila
  103. amitriptyline 100 for migraine
  104. roboxin and baclofen
  105. doxepin and escitalopram
  106. how long taking prednisone will you gain weight
  107. prescriptions from canada without
  108. canadian pharmacies that ship to us
  109. Viagra lowest price
  110. Viagra 20mg prix en pharmacie
  111. Viagra pills
  112. Viagra for daily use

Leave a Reply