Fintech was big news in 2018 and it’s set to get even bigger in 2019.
Financial technology, or fintech, is quickly gaining popularity. It’s delivering ever more innovative ways to provide consumers and businesses with financial products – from insurance to everyday banking.
Here CashLady looks at five big Fintech trends to look out for in 2019, including the rise and rise of mobile banking and a likely image enhancement for blockchain.
Fintech trends for 2019
The beauty of fintech is that it has the potential to provide us all with quick and easy to access to financial products.
Online bank accounts, using your smartphone instead of your debit or credit card to make payments, and even in-car telematics, are all great examples of recent advances in financial technology.
As we enter the new year, the question on everyone’s lips is, what’s next?
#1 Payments getting faster thanks to fintech
A fintech trend that’s bound to benefit all of us is faster payments in 2019.
Speaking to Bloomberg, fintech experts predict that banks will speed up the experience for customers paying for items in the offline world, such as at the supermarket checkout.
Tapping instead of entering a pin number will become the norm for customers in the UK, while tapping will replace swiping over in the US, which has been slower to catch on.
#2 The rise of voice banking
An exciting fintech trend for 2019 is the rise of voice banking, also known as conversational banking.
Research has found that customers typically prefer human-like interactions over touch screens and keyboards – especially when it comes to managing their money.
Website Pandle, reports that global management consulting firm, Accenture, backs this up, revealing that 63% of us now use messaging apps to speak to businesses.
When it comes to banking, messaging platforms, instant messaging applications, chatbots and conversational user interfaces (CUI) will revolutionise the future of banking for customer experience.
As the popularity of virtual assistants, such as Siri, Cortana and Google Assistant, also continues to rise, it’s only a matter of time before virtual assistants perform voice-activated banking transactions for users.
#3 Blockchain is going to get bigger
A key fintech trend for 2019 is advancements in data security and Blockchain is likely to be a huge part of that.
Known widely as a controversial cryptocurrency, Blockchain is also a digital ledger that lists data records as a series of blocks, which are recorded chronologically and publicly.
This makes it a robust and incorruptible decentralised technology and has many applications across businesses for data security and management of supply chains.
Key to the blockchain industry in 2019 is, according to Finextra, working on its image to distinguish blockchain from cryptocurrency in the minds of business.
As part of this, it’s likely that we’ll see a change in terminology, with blockchain increasingly referred to as distributed ledger technology or DLT instead.
#4 Mobile banking will overtake online banking
A fintech trend for 2019 that we’ve all been watching closely is that mobile banking is going to overtake online banking.
Providing enhanced speed and convenience for users, banking via smartphones instead of computers has been gaining momentum during 2018.
Back in May Moneywise published an online article stating that mobile banking was more popular than ever and set to overtake online banking in 2019.
It referred to a report from Financial services analyst CACI, which showed that 22 million customers used mobile banking apps to manage their current accounts in 2017.
This was a whopping average increase of 3.4 million users each year over the past five years.
Commenting on the data, Anne Boden, chief executive of mobile-only Starling Bank, says:
“App-only banking is popular because it allows consumers full control of their money on the move – no laptops, no card readers.
“As mobile payments rapidly become more commonplace, and the big banks struggle to keep pace with the technology, I wouldn’t be at all surprised to see banking apps overtake online banking by next year.”
#5 Up in the cloud
One of the final fintech trends to watch out for in 2019, is banks increasingly making use of the cloud.
The Fintech Times predicts that traditional banks and financial institutions will embrace cloud computing despite being hesitant about in the past.
Spurned on by the need to become fully digitalised, secure, and regulatory compliant it’s likely that these institutions will make better use of cloud-based solutions, which make for easier data management.