FinTech Market Trends Influencing CEOs in the FinTech Industry

1. Wider Adoption of APIs

Today more than ever, convenience is everything. Customer demands don’t just entail prime service offerings but timing preferences. However, financial institutions are having a hard time juggling customer demand with information security. As regulations evolve and banks comply, customers will see the benefit of APIs (application programming interface) to customer data. APIs serve as shortcuts to building new apps or implementing digital features — they help keep data in sync, enhance productivity and drive revenue. With an increase in open APIs in the market YoY compared to 91% internal bank-developed APIs from late 2018, new opportunities are on the horizon for fintech companies/establishments.

  • 350+ APIs available for use
  • 11,000 developers

2. Blockchain penetration

Hopefully, this is not the first time you are hearing about blockchain. Its disruption in the payments industry has secured investors due to a varies of reasons. Primarily, security of payments/transactions and the elimination of intermediaries. Cost reductions associated with blockchain have excited not only investors but customers, too. But this continued penetration has banks fearful. PWC indicates that 88% of banks have had concerns since 2017 that they’ll lose revenue to innovators using blockchain. These concerns hold validity, especially since the World Economic Forum concluded that 10% of GDP will be stored on blockchain technology by 2027.

3. Mobile-Only Banking

While this trend might frighten quite a few individuals reading, especially since many students strive to land jobs in the banking industry post-undergraduate, it might be time to reconsider. Why? Well, banks are not what they looked like 50 years ago. Physical locations are obsolete, bots are assigned to customer service roles, and mobile payments offer niche yet simple transactional features. Mobile-only banking features include contactless credit cards, P2P transfers, and up-to-date account activity. It is estimated that brick and mortar banks will decrease from 0.4–1.6% YoY.

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Disrupt - The FinTech Initiative

Disrupt - The FinTech Initiative

Disrupt is a student-led organization that aims to create a community which drives advancement, education, and engagement in FinTech at Northeastern University.