Fintech world is so diverse and rapidly changing that consumers sometimes struggle to keep up with the latest trends and innovations. Companies are constantly developing smarter technologies and revolutionary solutions which shape up the digital future of the financial world. What will be the 3 top trends that we will watch in Fintech in 2017? Read on to find out!
1. The boom of mobile payments
2016 was a successful year for companies who are developing digital alternatives to cash and traditional banking. Consumers and merchants have started adopting mobile payment solutions and adding digital wallets to their array of traditional financial tools. According to Business Insider’s latest report between 2015-2020 mobile payment volume will “rise by a compound annual growth rate of 80% to bring mobile payments volume to $503 billion by 2020”.
We expect that in the next couple of years mobile payments will replace cash. We will walk the mile to building a cashless society where smartphones pay our bills.
Mobile payment solutions offer a hassle-free, less expensive and more secure way to pay for goods and services, and you don’t even need a bank account.
2. Blockchain is gaining momentum
According to IBM 15% of the top global banks and financial institutions will implement blockchain technology and roll out blockchain-based commercial products in 2017. Blockchain derived from digital currency bitcoin. It’s an electronic-transaction processing and record-keeping system providing full transparency of all transactions in the network, without third-party verification. It’s no surprise that the largest banks in the world have already started developing blockchain commercial products.
We can find the reasons in the need of increasing security and offering customer-tailored services which are more adequate to the fast-paced and ever changing environment. One thing is for sure in 2017 – blockchain technology will grow amazingly, changing radically the banking services and our life.
3. The age of digital currency
A few years ago, switching from coins and notes to e-money was just Utopian idea. Now, it’s becoming a reality. The global journey from cash to cashless society has started and some countries are moving faster than others. This year, the largest bank in Japan has confirmed the rumors about experimenting with its own digital currency. They’re planning to launch it in 2017 and this could be the first bank-issued virtual currency in the world.
However, this isn’t the only proof that digital currencies will strengthen positions in 2017. Sweden, for instance, is scrapping cash and already rely on e-money as more convenient and secure way to pay and get paid. According to the latest studies, Sweden is about to become the first cashless country. The amount of circulating coins and notes dropped by 40% since 2009. What’s more, according to Riskbank cash payments made up only 2% of the value of all payments in Sweden in 2015. Whether Sweden will entirely move towards cash-free society or another country will lead the race, only time will tell.
2017 is shaping to be a very interesting year for the Fintech world. We are eager to see what other trends will appear and how they’ll affect global companies, small and medium-sized enterprises (SMEs), and customers.