Many FinTech experts agree that 2017 will be all about artificial intelligence. As the capabilities of AI evolve, FinTech companies will harness this technology to make better decisions and offer improved solutions. They’ll make use of predictive analytics to break down big data and analyse large volumes of consumer information. APIs will allow for seamless integration and partnerships between established banks and FinTech start-ups.
This will create an enhanced user experience, with more intuitive interfaces, assisted customer interactions and robo-advice. To maximise the benefits of Artificial intelligence (AI) in 2017, banks will need to develop a better understanding of “off-the-shelf offerings” and “architectural requirements.” They should also “carefully look into features (such as scalability of solutions) and check on regulatory aspects,” while deploying AI.
GREATER MOBILE TRANSACTIONS
In 2017, almost a quarter of all U.S. adult smartphone users (45.8 million people) will use a P2P payment app at least once a month. According to the Pew Research Centre, 72 per cent of U.S. adults now own a smartphone, which means there will be greater demand for mobile transactions. Mobile and contactless solutions will continue to gain traction in the coming year. This will allow retailers and payment providers to offer seamless transactions for purchases of all types and sizes.
This will impact our day-to-day lives significantly in the coming years. An upwardly mobile world combined with improved technology will create “more opportunity for disruptive models to find success,” which can only be good news for FinTech.
Just as we can cross borders without speaking to a customs official with an e-chip passport, we’ll start to identify ourselves the same way when making payments. Over the next few months, we’ll see mobile apps appearing that use biometric information for completing payment transactions
WALLETS BECOME SUPERFLUOUS
As consumer purchasing habits evolve, the smartphone attached to your hand will be more important than a physical credit card. With contactless card transactions expected to double worldwide by 2021, you’ll start leaving your wallet at home this year. FinTech companies and apps will make purchasing easier and stores will allow payments directly from a mobile.
There will be less need for separate cards and cash as one-click purchasing from your handheld will become the new norm. If you’re the kind of person who struggles to get out of the house with all your necessary personal items, then you finally have one less thing to think about.
As mobile and contactless transactions increase, there will be a need for improved security measures to prevent fraud. This will shift to being biometric in nature and make consumer data infinitely more precious. According to Engadget, fingerprints alone are not enough. So, it’s likely that transactions will involve multistep security, such as fingerprint recognition, face recognition or iris scans. Pretty great if you’re always forgetting your passwords!
This technology is already widely used in government applications but will move towards consumer transactions this year. Just as we can cross borders without speaking to a customs official with an e-chip passport, we’ll start to identify ourselves the same way when making payments. Over the next few months, we’ll see mobile apps appearing that use biometric information for completing payment transactions.