Never before has it been as evident just how influential the fintech industry will be for the future of our society and according to many, 2019 will be the year when the industry really takes off.
Because of this, we’ve decided to round up the five most exciting and potentially important fintech trends of 2019.
The main change that we and many other fintech gurus are looking forward to in 2019 is how our payment systems will improve. In fact, since payment solutions are the essence of the fintech industry, we can expect to see our payment options change in correlation with the fintech industry growth. Furthermore, our other predictions for 2019 are all connected to this one. A connection you’ll soon learn more about.
However, out of all the forces that could have a profound effect on payments, blockchain systems might be the strongest one, which brings us to the next point.
In less than two years, blockchains have developed from a rather unknown innovation to a global phenomenon that in many ways is already affecting our everyday lives.
From improved and faster payments to cryptocurrencies, new banking solutions, trading opportunities, and the improvement of pretty much every industry including health care to food production and retail, blockchains will soon be a normality in our society.
And it’s without any doubt that we can tell you that blockchains will be one of the important and most exciting fintech trends in 2019.
Unlike blockchains, open banking is still a concept that many don’t know about but that doesn’t undermine its influence on our banking and payment solutions.
Open banking is a concept where third-party developers can build applications around financial services to help improve their products and their transparency as well as increase consumer protection. This can both be conducted as closed projects controlled by the said financial services or as open code solutions.
All things considered, open banking will be a major trend in 2019, and it will have a bigger impact on our day to day lives than most of us can wrap our heads around.
One of the main driving forces behind this trend will be the European Payment Services Directive 2.0 (PSD2) that will make open banking more available than ever before.
Similar to blockchain technology, smart contracts will slowly become a norm in many industries. At the moment, one of the most obvious and exciting industries that will likely be first to make smart contracts a norm is the real estate business.
With the correct use of blockchain based smart contracts, the real industry will be able to increase the efficiency in many areas which will not only make transactions easier but also lower the cost for both real estate agents and customers.
Out of all the trends that we’ve predicted for fintech in 2019, the sheer growth is what we are the most excited about.
All this development will drive growth in the industry which will push fintech companies from small-scale startups to full-blown companies that could disrupt other industries on their own.
In turn, this will lead to an increase in fintech IPOs during 2019 which will also help further establish the industry as a force to be reckoned with.
If, or rather when, this prediction becomes a reality, fintech will be considered one of the world’s largest industries next to tech, energy, banking, and food.