TMCnet Feature
September 09, 2019

Digital and social trends that might impact fintech's business models

 Although it seems like a long time ago that conducting our banking and other financial affairs had to be conducted face to face, the rapid emergence of fintech has been a popular phenomenon.

For fintech companies, the fast-moving pace means that they are always playing catch-up with digital and social trends which may challenge the industry’s standard business models, necessitating flexibility and a fleet-footed approach to change.

Six trends in particular are set to shake up the industry over the next few years, each one with the potential to change it in some fundamental and very significant ways.

AI and robotic process automation

The use of AI and robotics has multiple implications for fintech, and not simply in being able to reduce the number of mundane and repetitive tasks that would otherwise need to be painstakingly done by hand. It has a role to play in everything from adding security measures via language and behaviour analysis to being able to offer automated investment advice via algorithms linked to an individual’s risk profile.


Cryptocurrencies may still be struggling to shake off their image as either an over-inflated investment opportunity or a shady way to carry out financial transactions, but the blockchain technology that lies behind them is certainly here to stay. Already a number of leading banks are conducting trials to see how it can speed up processes and increase security not just in financial transactions but also in the transfer of contracts and other critical communications.


In a survey conducted by PWC and taken by CEOs of financial institutions, 69% said they were somewhat or extremely concerned about cybersecurity. Threats can come from anywhere and the overall cost to business in 2018 was reckoned to be $2.7 billion. So fintech companies wanting to continue to operate will need to up their game in terms of including protection in their products and services.

VR and AR

It’s been a long time coming but it would certainly appear that both VR and AR have finally arrived and entered the mainstream. The key area in which they are likely to be used is in enhancing the customer experience, for example by presenting data in an accessible and appealing way. At a time when branch banking is definitely on the decline, it’s hoped that these will bring even greater autonomy in home banking.

Financial Processes

Of all the processes that feature in the financial world it is mobile transactions that is seeing the biggest growth. In 2017, it was estimated that they accounted for $1 billion worth of transactions a day. So fintech companies are having to take this method of payment very seriously indeed, doing all they can to make the process as intuitive and frictionless as they possibly can.

The Cloud

Finally, a great deal has been written about The Cloud and its role in creating accessible data storage. There have also been very obvious security concerns about where the information will sit. So expect to hear much more about the so-called Hybrid Cloud which combines all the benefits of accessibility while also addressing issues of data security, governance and compliance too.

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