FinTech 2017 Preview in 12 Headlines

fintech predictions 2017

fintech predictions 2017

Happy New Year! I wish you lots of bitcoin, low remittance fees, secure mobile wallets and cheap P2P insurance. Today, I have prepared a special edition of FinTech Summary for you. We will review of various predictions for 2017, as well as big and important topics that need to be address. After all, we’ve entered the most profound era of change for financial services companies since the 1970s brought us index mutual funds, discount brokers and ATMs. So exciting.

Have a wonderful week,

FinTech 2017 Preview in 12 Headlines


Pascal Bouvier shares his fintech wishlish for 2017. There are many nitty gritty problems that need solving in the financial services industry. Technology, common sense, thoughtful regulation and new business models will address these over time. There are also complex problems, bigly ones, that will require either deceptively simple solutions and/or intricate collaboration among many stakeholders.

10 Predictions for 2017 by Chris Skinner. A FinTech unicorn stumbles (this market is still nascent). Or perhaps SWIFT gets hacked again (how many times can this happen?).

For fintech, 2016 was a year of reckoning. Scandals and layoffs killed industry buzz, and deal activity took a mid-year nosedive. Regulatory uncertainty in the U.S. loomed large, as did Brexit. After a glum 2016, look for startups tackling massive opportunities like insurance and real estate to reenergize the fintech sector.



Bitcoin Blockchain Predictions

2017 Will Prove ‘Blockchain’ Was a Bad Idea. Yet, all in all, 2017 might be the final year in the pump-and-dump scheme of blockchain-without-bitcoin , the last-ditch effort to prove the marginal utility of databases on crypto-steroids. Probably some smart contract hype will clutter the debate, thanks to the smartest ones among the fools trying to outsmart even the smart contract inventor. But most of this fuss will finally leave center stage, allowing for the 2018 return of (a hopefully more fungible) bitcoin.

Another bitcoin ecosystem health check as we slide into 2017. Bitcoin is at its 3 year high. Is justifiable? Daily FinTech carries out a deep dive into bitcoin prices.

2017’s Big Question: Who Pays for the Blockchain? Not since the heady dotcom days have we seen so many experts hyping a new technology. But, amid the hype, little attention has been paid to an important question. Who pays for the blockchain?



Insurtech Regtech Predictions

What’s in Store for RegTech in 2017? RegTech has been a famous buzzword in 2016 and the industry – banking and FinTech alike – is looking eagerly at 2017.

InsurTech’s Predicted Impact on Agents in 2017. This upcoming New Year’s Day, agents and brokers should make a resolution to adopt technology that will more easily support customer requirements.

10 insurtech trends to set the stage for the digital insurance agenda in 2017. These 10 insurtech trends set the stage for the digital insurance agenda. They reinforce the need to connect insurance executives with insurtech leaders, which is basically our mission. It helps us to create an agenda for DIA 2017 Amsterdam that’s in sync with what insurers need and what the latest technologies can provide.

Banking and Payments

Banking and Payments Predictions

The top 10 trends in banking innovation. Littered with global examples, Efma has been running an awards program with Accenture for a few years now, to recognize global banking innovation showed 10 key trends emerging in the past year, of how banks are absorbing innovation.

Top 5 payments predictions for 2017. Brian Roemmele and Faisal Khan look ahead to what might change in payments in 2017.

Here’s why 2017 will be a turning point for the UK marketplace lending industry. The UK’s marketplace lending sector is one of the world’s oldest and largest, but it may be reaching a tipping point whereby growth starts to slow and market dynamics start to change.


What do you think? Leave the comment below!

Is Banking A Commodity Or An Experience?

FinTech Summary - Is Banking A Commodity Or An Experience

A commodity is a product or a service that no one cared enough about to market. Marketing creates value, by combining stories, design and care. The product or service is produced in a way that makes engaging with the item better. Commodities are in the eye of the producer. If you don’t want to sell something that’s judged merely on price, then don’t. International transfers were seen as a commodity service until TransferWise came in, so are deposit accounts (Fidor, N26, Atom), opening a bank account (Pockit), direct debits (GoCardless). There is no such thing as a commodity in banking anymore. Banking is an experience, not a service or a commodity.

Thanks for reading; YOU are awesome! 

Have a fantastic week,


Wouldn’t It Be Simpler Just To Launch A New Bank?
By Chris Skinner

Should a bank just launch another bank, rather than trying to be digital and convert the existing bank. The expectation is that the new bank will eat the old bank, over time, until at some point in the future the old bank can be shut down. This is a strategy, but it is a flawed one. First, does the new bank have the commitment to eat the old bank, or is it just being launched to show that the bank can create a digital first proposition. Second, what is the commitment to the new banks’ success? Does it have the full support of the old bank’s executive team, in terms of budget, capital, resources and talent pool? Will the SVPs be happy to see their bonus destroyed and given to the newbie upstart?


When A Payment Is More Than A Transaction
By Sofia At Lets Talk Payments

The role of electronic payments in 2016 goes far beyond basic transactions performed in vast networks to move funds from one person or entity to another. Just like banking is no longer somewhere you go but something you do, payments have turned into an experience rather than an action. Agile financial technology companies nowadays are able to turn bill payments (and other services) into a smooth and seamless, almost one-click process. As the UK government fairly noted, “good services are verbs, bad services are nouns.” As the British authority further elaborated, “To a user, a service is something that helps them to do something – like learn to drive, buy a house, or become a childminder. Notice these are all verbs.” Thinking of payments beyond transactions means understanding the value of transparent, seamless payments services.


Real-time Connections Between Regulators And Banks Is A Game-changer
By Chris Skinner

Real-time reporting will soon be norm. But this is not even reporting; this is analysis by the regulator directly of the data of the banks. This is where the conversation got really interesting as we discussed the idea that, in the near future, banks won’t even have to think about what they have to tell the regulator; the regulator will just be taking it. At that point, regulatory reporting becomes just a hygiene factor underlying the markets. There is no conscious focus on reporting, as the regulator is keeping their hand on the pulse of the markets in real-time. At this point, we then move beyond reporting to regulatory intelligence. The idea of having machine learning data analytics applied to market data by banks and the regulator should start to show systemic exposures and weaknesses pre-emptively. Before any market structural issues occur, the markets will know it.


Wearables Could Help To Heal Health & Life Insurance
By Daily FinTech

Buying Health & Life Insurance today is like filling in a form to tell Netflix what movies we say we like at that moment in time – versus what movies we actually watched recently. You fill in a snapshot report of your health, with blood samples and other tests run by a doctor and the premium is set. The fact that you later put on 40lbs and developed diabetes – or gave up smoking and alcohol and ran a marathon and reduced your blood pressure – impacts Insurance risk but is ignored by Insurance companies. Wearables could change all of that and revolutionize health and life insurance by a) personalizing insurance and risk and b) changing the delivery of healthcare. But first, there are three big hurdles to overcome.


5 things that made me smarter this week

Nike actually made those Back to the Future sneakers. Advances in batteries and motors made it possible for Nike to produce 89 pairs of the self-tying shoes.

African elephants walk on their tiptoes. The massive mammals put pressure on the outside toes of their front feet, and as little as possible on their heels.

Drunken birds dive-bombed a highway in Austria. The starlings had consumed too many fermented berries and ended up crashing into cars.

When you die, will you become an app? When a car ran her best friend down, a Russian AI specialist collected his digital traces and used them to build a bot that could talk to her, by text message, uncannily like he would have done.

Half of the mass of Eurasia and India has disappeared. Scientists thought continental crust couldn’t be swallowed by the Earth’s mantle, until it apparently happened.

FinTech Weekly Summary | Jan 10 – 17

Current status of the finance industry is… well… complicated. ‘GAFA’ (Google, Apple, Facebook and Amazon) are lurking around the corner to understand how they can become even more integral part of our digital lives. Finance is one of the channels they are not currently dominating. Huy Nguyen Trieu analyses how, why and when will ‘GAFA’ enter the world of finance. On the other front, FinTechs are trying to nip away core banking channels, such as money transfers or payments. These industries are rapidly evolving. John Doyle looks into 5 factors that will influence development of the payments industry in 2016. John Adams highlights one particular concern –  security and how banks are currently resolving it for real-time payments.

However, banks don’t need to panic just yet. FinTechs still require core banking products to provide their services. Giving financial powerhouses some breathing space to catch up with FinTech revolution, as Linda Dimyan analyses in her article.

Have a wonderful week,


Why Amazon and Google Are Bound to Enter Finance
By Huy Nguyen Trieu

From a strategic standpoint, it seems to make sense for the likes of Apple, Facebook, Amazon or Google to consider financial services with great attention. Each of these giants has a massive reach. More importantly, they compete with all other services to be at the centre of our digital lives. Since finance and money also play a critical role in our lives, it is natural that their business plans might intersect with Fintech at some point, much like Alibaba has done in China, with the finance arm of Alibaba now valued at $50bn.


5 Influences on Payments in 2016
By John Doyle

Most banks are concerned with dealing with the fallout from PPI, Packaged Bank Accounts and other mis-selling problems, and getting their infrastructures and platforms into a good state. The banks are too busy fixing to innovate, and this situation will continue (I fear) for a while yet.

What we do see is a new industry being established of companies who are feeding off the banks and providing services and products that appear to disintermediate the banks, but, in reality, don’t. 2016 will see further attempts to feed off the banks’ core business, and offer customers products and services that make transaction initiation easier, but still require the bank to be part of the chain.


Early Warning, ClearXchange Tackle the Security of Faster Payments
By John Adams

Real-time payment solutions will be a powerful tool to keep banks and credit unions at the forefront of payments while making a meaningful difference in the financial lives of their customers. However there is a lingering fear that enabling real-time transfers between consumer bank accounts will open a window for fraud that cannot be closed.

But as demand for real-time payments grows, two consortiums led by large banks hope to address the banking industry’s fraud concerns by developing an interoperable identity shield. Security and identity management are a large part of the strategy. These are among the most important concerns for consumers using digital payments and real-time payments will never achieve widespread adoption without making clear assurances about security.


Wall Street Catching Up to FinTech Revolution
By Linda Dimyan

Big banks are battling to get ahead of the technology disruption unfolding in the banking industry, with financial technology startups turning into red-hot investments. Some of the world’s major financial centers are equally becoming known as centers for FinTech innovation. But Wall Street’s adoption of technology doesn’t just stop there. In recent months, there’s been a migration between Silicon Valley and banking, underscoring how the latter is becoming a talent pool for the industry’s heavy hitters.


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