Fintech flow: what to expect in 2019? 

The term “fintech” is not just a fashionable word anymore. Now, it is a vast industry, fastly developing and closely observed by millions. Have a look at five trends, which will define the future of the technological market in 2019. 

1. Blockchain integration

The world expects blockchain integration at all levels and that will simplify labor-intensive and long processes, for example, bureaucratic paper procedures in banks. The blockchain technology simplifies confirmation of identity and registration of transactions. Startups actively develop the concept of blockchain use in logistics, education, health care. According to PwC report, 20% of financial trade will operate using blockchain by 2020.

2. Broad use of artificial intelligence

AI stands for artificial intelligence. Already now, with the introduction of virtual assistants such as Alexa and Siri, the robotic future, described in books by fantasts, seems not so far any more. Corporations and the companies realized the huge capacity of AI and develop it to simplify financial transactions.

The banks are already on the way to integrate financial management in digital space. They expect to lower business costs by $8 billion by 2022 with the help of artificial intelligence. Bank of America already created a bot Erica: she helps bank customers.

3. West vs East

While European and American cities try hard to maintain the advantageous positions in financial technologies, China, Singapore and other Asian states are hard on their heels. Experts also predict that Indian and African cities will be able to join soon. The huge amount of investments are at stake, therefore the leadership race becomes more interesting and more fascinating every day.

Probably, the most promising to watch now is Ant Financial, the "daughter" of the Chinese giant Alibaba Group. In my opinion, it has perspectives to become not less famous as its “dad”.

4. ICO as fundraising tool

The year of 2017 was the year of cryptocurrencies and blockchain. ICO (Initial Coin Offering) attracted millions of followers even though not everyone is happy about it. For example, the block.one company raised about $185 million in July, 2017 during ICO. The money were used to implement the EOS project idea.

Attracting venture capital is a quite long process, but ICO saves time and resources of all parties and allows receiving investments almost instantly. And this is crucial for startups. In this way, project founders receive capital, and investors have highly profitable, but risky means.

A bit of numbers: ICO market has increased by 40% in 2017. The year before blockchain startups received $96.3 billion in total.

5. Ensuring cyber security

Safety in cyberspace is one of the top problems of the fintech community. Hackers become more devious and each company, irrespective of activity scale, puts a lot of effort to secure themselves and customers against malefactors.

Based on a McAfee poll, 54% of cyber experts expect largest corporations to be hacked in the nearest future. There is no surprise that head of the financial organizations sacrifice a lot of money to develop technologies, promising to provide safety in cyberspace.

We already know, LG Electronics and Honeywell cooperate in the field of developing automobile software and solution to fights the threats, arising when connecting transport to communication networks. Let’s see what they will bring up to us!