Why fintech is still a way off disrupting lending

Great article at the end of last week in Financial News London discussing why FinTech is still a way off disrupting lending.

Mostly because despite advancements in automated lending decisions it’s still very clear that most FinTech’s still rely heavily on traditional risk employees within their business to help with lending decisions on a more manual basis. It sounds like the argument is that only when FinTechs can prove they can lend on a purely automated basis, that doesn’t prove a detriment to the quality of lending decisions, will they have truly disrupted the traditional lending space!

Original article can be read here!

https://www.fnlondon.com/articles/why-fintech-is-way-off-disrupting-lending-20180125

Top 10 FinTech predictions for 2018

We saw a great Infographic on Chris Skinners’ blog this week (although original credit goes to clari5 by Customer XPS), which talked about the top 10 FinTech predictions for 2018! Thought this could be a good way to start off the year! So here goes…

  1. Digital 2.0 Adoption Critical for Success
    US $350bn potential addition to bottom line over the next 3-5 years on complete Digitisation
  2. Enter the Machine-Led customer Front-End
    -Contextual Personalisation of services will rule
    -10% of purchase decisions will be influenced by intelligent machines
  3. AI-Led FinTech is here to stay!
    -30% of large Financial Institutions are investing in Artificial Intelligence
    -25% of AI projects will overwhelm as they will succeed in syncing with operational model
  4. Open Banking to Lay Siege on Data
    -Amazon, Google, Facebook and other FinTech providers will create innovative financial ecosystems
    -Banking business models will be redefined- 50% of banks will fail to exploit open banking
  5. Security Investments will translate to profit
    -10% of firms will translate security investments to profit
    -Identity management will become central to security for profit measures
    -Security data will be used for personalisation and CX enhancement
  6. Custom Tech Solutions
    -New FinTech and other tech delivery across banking ecosystem with open API’s
    -Cloud for improved agility, flexibility, and eliminating on-premise dependency
  7. Contextual Offerings will be key
    -Segment specific offerings for millenials, small businesses and underbanked
    -Mastery of digital media for better customer lifecycle management for mind share / wallet share
  8. Blockchain to continue to make inroads
    -30% of PoCs will continue to accelerate blockchain usage
    -77% are expected to adopt blockchain as a strategy especially against cyber security threats
  9. Key Investment by FI’s
    -74% in Data Analytics
    -51% in Mobile
    -34% in AI
    -32% Cyber Security
  10. Security to be foundation for new offerings
    -Security and RegTech to be critical components in new service or product offerings
    -Threat Intelligence services key in mitigation of security risks