Fintech is in an interesting place. It's been around long enough that a fair number of people know what it is, but it certainly can't be called old. Also, fintech lending doesn't command as large a share of the underbanked and credit invisible customers as it did a few years ago, as traditional lending standards slowly grow less restrictive.
"There are several notable developments on the horizon for fintech."
Nevertheless, exciting movement is occurring on the vanguard of this market. Let's look at some of its most notable trends and developments:
Advanced forms of user authentication
Security ranks near the top of every financial services firm's priority list, but no organization or network is truly foolproof. Still, advancements that are either available or will soon become reasonably accessible have the potential to reduce risk to an ultimately negligible share.
According to PaymentsSource, contactless payment platforms will be able to identify reliable or potentially risky consumers by evaluating individuals' mobile devices and retaining records of them, via a process called device fingerprinting. Other methods of security include biometric authentication and the ability to limit the likelihood of online fraud through AI-based gauging of device trust.
Blockchain helps drive investment to record highs
CB Insights found that in 2017, fintech firms received more than 35 mega-round investments - capital infusions of $100 million or more apiece. This is a record number of investments at that sum, and indicates a growing level of belief in the field's future among the established financial elite. Blockchain, in keeping with its steady rise to prominence overall, had a significant encouraging effect on investment, with projects launched through initial coin offerings attracting notable attention.
Regulators taking an interest
Skepticism about fintech often centers around its lack of regulation. However, according to Deloitte, regulatory agencies in the U.S. and elsewhere are beginning to monitor it more closely. The codification of regulations could make people feel more safe using advanced financial services, benefiting businesses and consumers alike.