The scourge of innovation in the financial sector has long been the legacy technology on which banking systems are built. Whether back, middle or front office, inefficient and uncompromising systems have hindered improvements to customer service and expectations.

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Six Fintech Trends of Foremost Importance
in 2017
2016 was a whirlwind year for the FinTech world and it’s about to get even better. According to
the annual FinTech Report, cumulative investment globally will exceed $150 billion in 2017. As
the next industrial revolution matures, many areas in banking and finance are being
transformed.So, we have this pleasure to feature a study series speaking exclusively on Fintech
developments across the globe.
Here is our 1st part of Fintech series where we update ourselves with the latest trends in Fintech
ecosystem. Here we go!
1.Open banking
The scourge of innovation in the financial sector has long been the legacy technology on which
banking systems are built. Whether back, middle or front office, inefficient and uncompromising
systems have hindered improvements to customer service and expectations.
Open banking platforms have the potential to eradicate (or lessen) many of these problems. They
support development through collaboration and growth through competition. Greater adoption by
the incumbents will dramatically increase the impact that Fintech can have, and the speed at
which they can do so. For the consumer, this will manifest in more enjoyable customer
experiences and greater visibility regarding their financial options and wealth management.
2. Artificial Intelligence

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There’s virtually not a field that Artificial Intelligence hasn’t touched, and the financial industry
is no exception. Machine learning algorithms are particularly adept at analyzing huge amounts of
data and finding patterns that would go unnoticed to humans.
Already, hedge funds and stock exchanges are making use of AI algorithms to become more
efficient in forecasting the stock market and make smarter decisions. AI is also finding its way
into banking. An Accenture survey of 600 top bankers found that AI will become the main way
banks interact with their customers in the next three years, easing the workload for employees
and enhancing the consumer experience.
Artificial Intelligence can also play a pivotal role in preventing fraud in banking and other online
payment systems.
3. Mobile transactions go viral
In recent years, the use of debit and credit cards has gone down significantly with the appearance
of mobile wallets and the option of contactless payments for goods and services. With changed
shopping habits, shoppers are gradually preferring to have their phone nearby, rather than a
physical wallet.
Mobile wallet companies look to be the Fintech trend ahead for online transactions. This
inexpensive and easy-to-use alternative to credit cards, with their high interest rates, and debit
cards, with their high fees is another Fintech trend that is picking up pace in 2017.
4. Blockchain
The Blockchain is a public, digital ledger -- almost like a global spreadsheet -- that can be
programmed to record everything of value. It has the potential to store information with
unquestionable accuracy, which is why it was initially devised for the digital currency, Bitcoin.
However, the Financial Services industry has recently been finding other uses for Blockchain
technology.
The benefits of Blockchain technology for use within the Financial Services are plentiful:
 It allows for fast and secure transactions
 It reduces costs
 It improves transparency
According to a survey conducted by TABB Group:
"89% of senior executives believe Blockchain will be in everyday use in the Financial Services
industry by 2026."
However, the biggest challenge for companies set to implement Blockchain is a lack of human
resources. 70% of senior-level, global financial services decision makers agree that their

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organisations currently don't have enough talent capable of implementing Blockchain
technology.
5. Lending and leasing
Fintech trends are making traditional lending and leasing organizations realize that they need to
transform their operations in order to remain preferred lenders. While large corporations are still
heavily dependent on traditional lending, SMEs and retail customers are finding it easier to deal
with more flexible alternative lenders.
Greater automation, machine learning, data analytics, smart contracts, and enhanced
cybersecurity are expected to not only increase operational efficiency but also result in lower
costs and a better customer experience.
6. Levelling up customer service
Effective digital banking rids customers of queues and frustrating phone calls; innovative
KYC/AML, biometric authentication and social payments reduce logistical friction; and third-
party remittance platforms have stolen market share thanks to their ease of use and the perennial
consumer magnet, reduced cost.
For the many end-users that see FinTech only as a front-end, what will determine success in their
eyes are speed, cost, and ease of use. And so increasingly, a key FinTech battleground will be
UX.
Overall, 2017 is set to be a disruptive year in terms of technology trends for the Financial
Services industry wherethelandscape becomes more competitive.