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Fintech platform revenues to reach $638 billion in 2024 as inovative services become „the new normal”

15 mai 2019

AI & Blockchain to Catalyse Fintech Adoption

New data from Juniper Research has found that fintech platform revenues will reach $638 billion by 2024, up from an estimated $263 billion in 2019; driven by increasing consumer acceptance of fintech-powered solutions.

According to the new research, Fintech Futures: Leading Innovators, Segment Analysis & Regional Readiness 2019-2024, technologies such as machine learning, Big Data analytics and blockchain will be the cornerstone of fintech platforms. These will fundamentally alter the way financial services are delivered and drive fintech platforms to become the ‘new normal’. Such technologies will make new use cases mainstream, including smart contracts, loan underwriting using AI to analyse non-traditional data sources, and personalised insurance policies based on IoT-generated data.

For more insights, download the free whitepaper: The Future of Fintech ~ The New Standard.

Incumbents Not Idly Standing By

In light of rising customer acceptance of digital platforms for financial services, traditional players are responding rapidly. Incumbents are attempting to replicate the fintech firms’ offerings; for example with digital banking offshoots (Marcus from Goldman Sachs) or new services (HSBC’s Wealth Compass). The research argued that incumbents will use these strategies to appeal to users outside their normal target audience, such as millennials, to secure future revenue streams.

Where incumbents cannot replicate the fintech platforms, they are partnering with fintechs. For example, Austrian banking group Bawag is using Spotcap’s lending-as-a-service platform to support SME lending. However, the research claimed that the challenge would be to integrate these partnerships in a seamless way, keeping friction low and maintaining control of the overall customer journey.

Research author Michael Larner explained: ‘The distinction between the fintech suppliers and traditional incumbents will blur in the 2020s; digital engagement will become the norm. The winners will be those that provide personalisation allied to an outstanding customer experience’.

Regulation in Fintech Major Stumbling Block

Meanwhile, the research found that heavy regulatory burdens imposed on financial institutions after the 2008 financial crisis also mean that direct entry, beyond partnerships, remains unlikely in the medium term for even large technology companies.

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Anders Olofsson – former Head of Payments Finastra

Banking 4.0 – „how was the experience for you”

So many people are coming here to Bucharest, people that I see and interact on linkedin and now I get the change to meet them in person. It was like being to the Football World Cup but this was the World Cup on linkedin in payments and open banking.”

Many more interesting quotes in the video below:

Sondaj

In 23 septembrie 2019, BNR a anuntat infiintarea unui Fintech Innovation Hub pentru a sustine inovatia in domeniul serviciilor financiare si de plata. In acest sens, care credeti ca ar trebui sa fie urmatorul pas al bancii centrale?