It’s almost been a year since the last time we dusted off our crystal ball to take a sneak peek at how the future of financial technology is shaping up, and what a year it’s been.
Agility, innovation and speed have earned their place in the FinTech dictionary of words that have been most used to describe the response in our industry to the sheer scale and pace of change that we have all seen.
Here at Eliga Services, we have been hard at work looking at how we can better support our clients in deploying the cutting-edge, agile solutions that customers are demanding. Open finance has been a major development area for us. The team has been looking at how we can give clients the agility they need to meet the demands of a fast-growing digital customer base that is looking to securely manage their finances in one place. Utilising our cutting-edge Eliga Open Finance API platform, we plan to reach out to financial services and retail domains to demonstrate the transformational benefits and value that open finance can deliver for both their company and the end user. That’s one major trend and growth area for next year. But what can the numbers tell us about the other big opportunities and challenges ahead in our sector?
What else is shaping the future of FinTech?
Let’s take a look at 11 statistics which give us a glimpse at the outlook for financial technology…
- 88% of senior leaders in financial firms say that investment in technology is a top strategic priority over the coming year, compared with 63% that say it is responding to the pandemic (Lloyds Bank)
- Improving productivity (71%) and customer experience (70%) are the key drivers of these investment decisions (Lloyds Bank)
Disruptive technology and digital transformation
- 66% of banking executives report that AI, machine learning and internet of things will have the biggest impact on banks over the next five years (Content Stack)
- 84% of banking executives think that DevOps and cutting-edge cloud platforms will drive core banking transformations (Economist Intelligence Unit / Temenos)
- 44% of consumers were willing to buy insurance from Big Techs in April 2020 compared with 36% in January (CapGemini / Efma)
- Open banking innovation will help drive consumer adoption. 64% of consumers will understand how open banking benefits them by 2022 compared with just 18% this year. (PwC)
Skills shortages and newly created roles
- 90% of businesses in all sectors will need Automation Architects by 2025 as automation becomes a vehicle for DevOps and Agile-based infrastructure operations (up from 20% today). (Gartner)
- Due to skills shortages, 44% of global financial services firms report that they have lost a market opportunity and 55% say they are failing to innovate. (Questionmark)
- 75% of financial institutions do not have the capability to use data and analytics to determine the next best action. (Digital Banking Report)
- Only 38% of insurers have implemented open APIs and 48% have a cloud-native enterprise (CapGemini / Efma)
- 84% of bankers believe that a multi-cloud strategy will be a regulatory requirement (Economist Intelligence Unit / Temenos)
What’s on your roadmap?
This is just a glimpse into how our sector is shaping up. What are the investment priorities for your business? What’s on your roadmap? What are the biggest challenges that your organisation faces? We’re here if you need our help.
Have a peaceful New Year. Keep safe – Team Eliga.