Top 10 fintech predictions for 2018

The global fintech ecosystem continued to mature at an accelerated pace over the course of 2017. According to the 4Q17 edition of The Pulse of Fintech by KPMG International, total global investment in fintech remained steady at over US$31 billion, year-over-year.

With big developments ranging from the rise of open banking, increasing regulatory clarity and maturation of AI and blockchain, 2018 promises to be another big year for fintech. Alvinlvin Gan, executivedirecof

director of KPMG Management Consultingnsulting in Malaysia, has beenn observing howemergtechnologies

emerging technologies like big data, AI, robotics, blockchain,ckchain, coupled withh ever-changing customertomerexpectans,

expectations, are reshaping howw the Malaysian financialancial institutions (FIs)s) deliver services.

“The introduction of roboticotic processaumation

automation (RPA) andd chatbots, for example, hadd enabled greaterater productivity proctivity hencencealw

all o w i n g FIss ttoo addressdress more complexmplex customertomer needs.ds.

“Many also recogniseognise AIbeming

becoming a pivotal technologyhnologybed

behind fintechinvation,

innovation, pre- senting massive opportunities to be the first mover in causing a shift in customer expectations by being able to know what their customers need, even before they know it themselves,” said Alvin. With these developments in play, Alvin is not surprised to see greater collaborations between FIs and large-scale technology providers to build customised solutions and value creation. Globally, FIs have invested more than USD27 billion in fintech and digital innovation since 20151. Alvin added, “Collaborations such as these are becoming more rampant in Malaysia, not only between organizations within the private sector, but between regulators and non-profit organizations as well. “The application of blockchain technology into the financial sector is an excellent example. In the Asean region, we are seeing FIs working closely with the regulators to develop a blockc h a i n proof- ofconcept aimed at streamlining know- your- customer processes.

“As we move further into 2018, we expect blockchain to continue being a hot area of focus in this part of the world as it does globally.”

With these digital transformations and emerging disruptors taking place in 2018 and beyond, KPMG sees fintechs enabling the provision of more effective products and services in the financial sector.

“Fintechs, being the disruptors and facilitators, will see corporations, innovators and regulators come together to use technology and innovative propositions to improve financial inclusion and enhance customer experience in Malaysia.

“We will see greater access for customers that were previously excluded from the traditional financial system as product innovations and lowering of costs will allow them to enjoy the same standards of services as other customers.

“Also, there will be a significant increase in customer engagement and experience as fintechs are able to analyze customer data to offer personalized services and provide more interactive communication through multiple channels,” Alvin concluded.

“The introduction in of robotic process automation automati (RPA) and chatbots, for example, exa had enabled greater productivityproduc hence allowing FIs to addressaddre more complex customer needs.” need Alvin Gan, executive director of KPMG ManaManagement Consulting