By Amanda Peterson, Enlightened Digital
When it comes to finance, there is no shortage of big bets on which new technologies will come to fruition and to what level they will be adopted into the market. If 2018 showed us one thing, it’s that the technological revolution has finally reached the financial sector. From expansion in cryptocurrency to chatbots for banking, financial technology, or FinTech, has demonstrated extensive growth.
Where is FinTech expected to go in 2019? Many have begun to predict FinTech’s major advancements for the year, and are expecting trends to be some of the most transformative yet. Because of this, we’ve decided to round up the four most exciting and important FinTech trends for 2019.
- Mobile Pay
While we won’t see the end of credit and debit cards anytime soon, the industry will move in that direction in 2019, especially with contactless technology (using cards or fobs that connect with payment devices wirelessly). This trend was kickstarted by Millennials, who are a considerable client segment for traditional retail banks and are the prime target audience for digital banks, taking majority in aggregate consumer spending. In fact, 82 percent of millennials bank entirely through their smartphones.
Contactless and mobile payment will become a new normal in 2019. This has already been demonstrated through capabilities such as Apple Pay. However, many anticipate that today’s largest bank chains will soon adapt the technology on a much larger scale.
- Open Banking
Though open banking is a concept that many people don’t know about yet, it will have a major impact on the banking experience in 2019. Open banking is the practice of sharing financial information electronically, securely, and only under conditions that customers approve of. Essentially, customers have more options for managing money, borrowing, and making payments. Consequently, many FinTech representatives are already using open banking technologies or are planning to implement them in the new year.
Open banking is a major topic of discussion in global banking circles as more non-bank financial services providers pop up and more firms look to help customers gain insights into their financial life. Online resources such as third-party personal financial managers that use bank account information to help track spending and reach other goals are likely to implement open banking into their services. With the rise in popularity of open banking, we should expect to see more companies emerge that are designed to help customers save, curb wasteful spending and get better rates by analyzing personalized financial data.
- Voice User Interface
As voice assistants like the Amazon Echo and Google Home become more common in the homes of many, voice is becoming one of the most prevalent user interfaces today. Studies show that consumers are much more conversational and are more likely to take action via voice device than text. In turn, service providers are forced to adapt their operations to meet the demands of voice-enabled actions.
Though some finance-based functions are able to be completed through a voice assistant, like purchasing goods from Amazon Prime or ordering a pizza from Domino’s for example, voice technology presents a major opportunity for the financial services sector. Voice redefines the way people research and purchase items and services. Imagine paying bills or transferring funds through your voice-enabled device. A simple voice command such as “Pay my auto loan” could process the user’s payment to their loan holder. FinTech firms will start to take advantage of these capabilities in 2019.
While 2018 was the year of data breaches and cyber attacks, 2019 will be the year of fraud detection and heightened security measures. FinTech leaders will utilize emerging technologies to strengthen security for proprietary or third-party services.
Financial institutions and FinTech organizations will spend much of 2019 working on and launching new and better ways for consumers to have more control of their cards and their personal information. New tools for authorization and authentication will become prominent in devices and applications we use daily. For example, use of biometric technologies, like fingerprints, facial recognition, or retina scan will be used more frequently.
Digitalization is no longer an option for financial institutions, and 2019 will likely exemplify its significance in habits of today’s consumers. The wide adoption of FinTech will continue to disrupt the industry, making it more customer-centered. Predictions for the “next big trend” in FinTech will not only impact the next year of financial services, but will leave a lasting impact in the future of technologically-equipped consumer needs.