Given how pervasive financial services are around the world, this is where there are tremendous opportunities for startups of IT Trend In Finance And Trade. Some startups that have attracted investment are already transforming almost every type of financial activity today.
Meanwhile, the old guard is trying to solve mysteries –
what is the modern technological revolution in the field of finance, how can you benefit from the growth of digital technologies, how to avoid their obsolescence?
Below are our top financial IT forecasts for coming time. They are based on research that BI Intelligence conducted, including industry trend forecasts, data tracking, and conversations with industry executives.
1. Blockchain technology will become more and more popular, global banks are joining the one-stop solution for interbank transactions using it.
The Blockchain technology that underpins bit coin eliminates trusted intermediaries, lowering transaction costs. While banks have different views on the future of Block chain, most consider it to be potentially interesting.
We believe that in future banks will rally around a single solution for managing interbank transactions. It is likely to be implemented gradually over the years. Thirty global banks have already joined Blockchain startup R3CEV.
2. Apple, Google and Samsung will build their commercial projects around their own payment products.
We have realized that the future of mobile payments was shaping with the release of Android Pay and Samsung Pay, both of which closely resemble Apple Pay. But mobile transactions are just the beginning.
Now we will see these companies focus on building their commercial projects around their own payment products, which include the functionality of loyalty programs, store cards and coupons. These will include an in-store component that uses sensors to send offers to customers’ phones.
Ecosystems like these will be key drivers of mobile payments adoption. Special offers and rewards are the main incentives to use mobile payments.
3. Business applications hosted on mobile points of sale will become a necessity for small businesses.
According to some studies, more than 40% of small businesses in the West are ready to use mPOS devices (mobile point of sale) offered by Clover and ShopKeep. Applications that can help process point-of-sale data and generate ideas will become widespread. Companies adopting the new products will benefit from increased traffic and deal size, as well as improved back-office efficiency. For developers, new technologies will bring revenue growth.
4. Mobile ordering applications will become an important operational channel for fast food restaurants.
Fast food restaurants are introducing digital ordering platforms to increase average revenue, order frequency, customer loyalty, and ultimately, sales. For example, the average number of Taco Bell orders in mobile apps is 20% higher than in stores.
Starbucks recently launched its own mobile ordering feature, which the company says is heavily used. Other fast food restaurants are looking for new directions of development and now 80% of the TOP-20 of this market are offering or testing mobile ordering systems.
In order to maximize the benefits of new technologies, restaurants are likely to incentivize service use through loyalty programs and bonuses. Marketing activities will accelerate the adoption of mobile ordering systems.
5. Traditional financial institutions will respond to threats from financial startups by becoming their partners.
Outdated banks face the biggest threat not from other banks providing similar services. Their existence is threatened by innovative start-ups that can radically transform the conservative financial market. Several options for responding to this threat are being considered, including creating similar in-house products, acquiring competitors, or creating partner alliances.
We think banks will adopt a strategy of partnering with small finance startups to optimize their services and grow their audience. This approach is easier than building your own internal services. Startups can focus on creating a user-friendly interface, while banks must overcome the friction of innovation within an outdated system.
However, many of the startups have to prove that they should be targeted for acquisition. Partnerships enable banks to try before they buy.
This strategy has already been adopted IT Trend in the alternative lending industry. Big banks like ING and JPMorgan Chase have partnered with digital services like Kabbage and OnDeck to better fund small businesses.
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