Five Fintech trends with which banks and financial services should employ 2,019

It has long been predicted that new and smarter financial technologies could make traditional banks and financial services unnecessary in future. A study by analysts at PricewaterhouseCoopers has now found: Banks are Fintechs towards more open and want to work together in more and more areas with them. 88 percent in a recent Fintech cooperation study financial institutions surveyed have stated in this connection that Fintechs are an integral part of its future business strategy. But which technologies and solutions applies it here to keep a careful eye? One thing is certain: It’s about much more than just clever mobile payment solutions or NFC payment devices. Instead, sought increasingly looking for integrated solutions to better use, for example, the available data mountains for business strategy, sales approach, compliance and decision making.

1. streamline data management and utilization

So far were decision-makers in particular before a question: Where to start? A recent IDC forecast is in this context believes that the global amount of data expected to rise to 163 zettabytes to 2025th That’s a tenfold increase over 2016. To classify: A Zettabyte one billion terabytes. Right here handlebar companies can start in terms Fintech. Most banks are still working with many different systems where their information is stored. The challenge: Often the systems are getting on in years and data more than once, so that a strategic use and analysis is to be difficult and complex. The targeted, comprehensive and thoughtful handling of data – whether this is customer, financial or other business-related information – has to take in 2019 a top priority. Only companies that meet this challenge and implement innovative solutions that support this are processes more sustainable and efficient in the future.

An example of the technology optimized information retrieval and an improved data management in the financial environment provides the developed in Dublin solution DataChemist . Helps banks to transform chaotic and inconsistent records in clean, structured and integrated information. This improves the decision-making and also reduces costs. DataChemist searched data sets of different sources and helps to uncover connections that are not obvious at first glance. Financial companies so learn their customers and know their needs and desires clearly better. This improves example, the “know your customer” performance significantly: You can prescribed for banks and insurance identification check of important new customers, such as anti-money laundering, perform faster and more efficiently.

2. create new business with cloud computing

Another trend that will continue to gain in 2019, is the increasing adoption of cloud-based technologies in the banking and financial sector. More and more companies are putting in this regard to customized solutions. The initial skepticism about a swap of relevant data to the cloud of knowledge has since given that make thoughtful security measures and cooperation with a reliable partner any risks or safety concerns void. Who too late opts for the cloud, can quickly lose out in terms of competitiveness and business success today. Digital and young banks have often set against the established financial houses on cloud computing, which now but to follow suit. IT giants, such as the world’s largest software manufacturers have developed in this context, platforms that are trusted by the consumer, and are in a similar form for the financial industry. The increased use of cloud computing technologies results in a further step to companies new financial services and offers much faster than before can bring to the market. In this way, increase scalability and flexibility for the entire financial sector.

As can be found using smarter financial technologies new business areas and ways of addressing customers, shows the car financing. One example is the digital solution of the Irish company Peeled Finance . Through the online financing tool car buyers can apply easily for a loan that must be repaid within five years. Thus the solution to the needs of organizations can be adapted, who are interested in entering the vehicle finance market, without having to bear the costs or barriers as lenders.

3. detect fraud and ward

The unstoppable rise of artificial intelligence, data analysis and the Internet of Things will be in 2019 and will have a profound impact on issues such as fraud detection and back-beyond. It is estimated that fraud costs businesses around 2.1 trillion dollars per year worldwide. This corresponds to the gross domestic product of Saudi Arabia, Pakistan, Switzerland and Ireland together.

Combating money laundering alone costs about 83.5 billion US dollars worldwide. However, there are Fintech innovations that allow banks and financial institutions can guard against this danger. Irish Fintechs as Kyckr help to reduce these costs and contribute at the same time help to ensure that companies comply with the increasingly stringent regulations: Due to the real-time customer testing in global trade registers the Kyckr solution reduces the counterparty risk in trade finance, transparency increases in the Know Your Customer -Prüfprozess and offers advantages in supply chain analysis.

4. Set on biometric authentication, mobile apps and BaaS

Fintechlösungen for fraud prevention and improved protection of financial processes will play an increasingly important role. To competitive strong and forward-looking to perform here, it is essential to be open to new technological approaches. This includes mobile apps and new authentication approaches. The human authentication company Daon shows how important innovation and foresight to protect the identity in today’s financial environment are. By working with a UK bank already use every day over a million people biometric authentication for their mobile banking. These include among others, the fingerprint and facial recognition.

The introduction of mobile apps offers banks countless ways to better target customers, retain and support. Finally, the average customer visits his bank branch only around ten times a year, his bank app but 300 times a year. Also this year, the success of BaaS (banking as a Service) will continue. Companies that rely on BaaS platforms, so you have a clear competitive advantage. Technologies like this will help drive the digital transformation in the financial industry, reduce anxiety, to help customers better and to make processes more efficient.

5. elicit New e way of payment processing

2019 there will be in addition, some innovations in the area of payments. This includes the Direct Currency Conversion (DCC), dynamic currency conversion, can process such as a credit card payment at the terminal in their national currency with the foreign customers. With the help of DCC services, such as Fexco , customers know directly how much they spend in their local currency and have complete transparency of exchange rates.

The trends mentioned five impressively demonstrate with which Fintech innovations and issues to banks and financial institutions should deal increasingly in the coming months. Close them to new solutions and approaches, this may hinder their success and even their survival in the worst case. Precisely for this reason a cooperation with interesting Fintech providers is 2,019 key requirement for future-oriented banks in this highly competitive and affected by many changes market.