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Three Emerging Fintech Trends Every Entrepreneur Needs To Watch

These Fintech Trends Will Redefine The Way We Conduct Our Businesses

We are right on the cusp of seeing almost every industry be radically transformed by the advancement and incorporation of fintech and the growth of the digital economy. with the numerous tech innovations emerging constantly amidst this exciting transitional time, it isn’t always certain which technological trends are true disruptors with staying power and which are merely overhyped.

With that in mind, here are the top fintech trends every entrepreneur should be keeping an eye on in order to thrive through this age of massive technological disruption poised to transform the finance sector.


Cryptocurrency Will Continue To Gain More Legitimacy

While many governments have resisted adopting crypotcurrencies, its popularity in the stock market and incorporation into industries across the world shows no sign of abating. In September, China banned mainland residents from trading in cryptocurrencies on exchanges and made it illegal for Chinese start-ups to raise funds via Initial Coin Offerings (ICOs) – essentially an unregulated alternative form of crowdfunding that has helped a lot of companies and startups get the funding required to start their businesses. In an ICO event,a percentage of the cryptocurrency is sold to early backers of the cryptocurrency startup project in exchange for Bitcoin. Yet the price of the largest cryptocurrency in the world, Bitcoin, has since bounced back after initial fall in stock prices, climbing to a high of $7,769.84 just yesterday. 

As major transnational companies start accepting cryptocurrencies as a legitimate currency for their product and services, it is only a matter of time before it becomes a mainstay in our everyday transactions. For instance, the tech giant Microsoft has been accepting Bitcoin for online purchases of Xbox games and its Windows apps since 2014. 

According to the start-up marketing expert, Yoav Vilner, "ICOs is one of the main trends entrepreneurs should pay close attention to in 2018. ICOs events usually extend for one or more weeks where everyone is allowed to purchase newly issued tokens in exchange for established cryptocurrencies like Bitcoin. ICOs are a part of the crypto world that is most likely here to stay."

With the advent of ICOs, government regulation will inevitably also come into action to ensure consumers are protected from exploitation but inadvertently may also hinder innovation in the field.


The Advent Of Mobile App Trading Brings New Players Into The Market

Trading in the open market has been traditionally perceived as a highly restrictive and secretive process. However, the advent of FinTech has brought with it new and easier ways to invest, making the lucrative trading in the stock market exchange accessible to new and inexperienced investors. Many FinTech apps, like Robinhood and Stash, offer users the ability to invest in the stock market free-of-charge. They make money by offering optional premium services or by taking tiny shares of users’ trades as fees. The bitcoin company, Luno, offers consumers a Bitcoin wallet for Bitcoin transactions and storage. They allow customers to trade in Bitcoin or Ethereum in 40 countries and tracks the daily Bitcoin stock prices all on its mobile app.

Though such services may not entice seasoned traders or experienced entrepreneurs, the significantly lower barriers-of-entry opens the world of trading to millions of young people, allowing them to try their hand at trading.


Biometric Technology Will Enhance Payment Security And Authentication

A new study by Juniper Research, Mobile Payment Security: Biometric Authentication & Tokenization 2017-2021, has found that the number of mobile payments authenticated by biometrics will rise to nearly 2 billion this year, up by more than three times from just over 600 million in 2016. 

The research emphasized the increasing momentum behind alternative biometric solutions. Mastercard was recognised as an early leader in this space with the launch of the Identity Check Mobile capability, due to go live in the latter part of this year. Informally known as “selfie pay”, it allows users to scan their fingerprints and/or take selfies for identity authentication to authorise payments. The biometric data that is linked to a bank account, the verification process acts as both authentication and transaction enabler.

The research also stressed that one of the key challenge for service providers and offering these new processes would be striking the right balance between end-user convenience and optimising security.

According to the research author, Dr Windsor Holden, “Typically, the more secure the solution, the more time-consuming the authentication process. It is essential to offer a range of verification options allowing clients to determine what level of security is required for a given authentication.”




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