Five the most current trends in financial techniques

Financial technologies are growing at the speed of light and the year 2016 certainly shows quite a few innovations. Today we are going to focus on the fivemain fields where the largest breakthrough is happening. Let’s dive in.

The Blockchain development

Currently a few banks are bringing in blockchain into their core banking systems, yet we all know that the banks are very slow with innovation. Even though bitcoin and the blockchain technology certainly have a great impact on the finance, it doesn’t seem that blockchain will bring in world-changing products in 2016. It should take a year or two for it to fully mature.

Banking APIs

The legal environment that surrounds European Union is changing drastically as of October 2015. For decades, banks have kept customers’ data under the lock and key, yet now they are requested by the EU authorities to open up the data if the client feels like it. This opens up a lot of possibilities for the banks and fintech companies.

Lots of startups are working with banks to deliver better services to users. In CEE, Poland based Kontomatik is offering banks software to quickly open accounts so clients can login just like registering on a website using Facebook or Twitter credentials.

The growth of the fintech ecosystem

Startups, VCs, accelerators, challengers, corporate innovation and investor teams the network of players that is powering the growth of financial technology – the ecosystem has grown exponentially in 2015. 

There will definitely be a shakeout at some point – some clear winners, in the way that Amazon changed the retail commerce and book industry, and some losers. The battle between digital financial services companies and the incumbent financial services industry is nascent but the public markets will continue to shift value to the challengers.

Vertical integration of e-wallets

PayPal, Skrill, Neteller and other Internet wallets have taken a large slice from the banking transactions pie. As these systems are aggregating more and more users, in 2016 they will start offering different financial services next to the payments. Recently PayPal started offering quick loans for e-commerce purchases and this is certainly a path to follow for its rivals. Next to lending, digital wallets might include personal finance management tools, affiliate promotions and integration of other, non-core, services.

The Use of Robo-Advisors

Many people find it interesting to invest their money into robo-advisor trend. Instead of using a financial advisor alone, robo-advisors take into account algorithms and statistical trends, which will help them invest, or will invest their money for them to earn the best yield possible.

Here are just several tips for profitable investments, though we would appreciate, if you share with us your ideas!

Have a nice week,
Your Ardas Team