The FinTech Effect and How To Survive the Revolution
By all accounts, the "fourth industrial revolution" is upon us. Everywhere you look there are smart and increasingly integrated technologies which are becoming a major part of our lives. The Fourth Industrial Revolution builds on the Digital Revolution, with technologies that are redefining how people think, act, drive, work and more. Not only through emerging technology breakthroughs in the fields of AI, robotics, nanotechnology, 3D printing, and cars that drive themselves, but in the financial world. FinTech is a part of this revolution as innovation in the financial marketplace is enhancing member experience and streamlining financial services.
To this point, investment in FinTech has seen huge growth over the past decade, from an estimated $1.8B spent globally in 2010 to $19B in 2015, and reaching $24.7B in 2016. Additionally, in a report offering an early summation for 2017, an estimated total of $150B will be spent on financial technology investments globally. With all this new financial technology influencing and driving the marketplace, having a platform and a credit union core system that can readily integrate information and data, while working transparently with these cutting edge products, is a necessity.
Experts in the FinTech industry have offered a few insights on what lies ahead for the future of the FinTech marketplace. As consumers, we need to recognize that our information is continually collected, helping to formulate a picture of each of us and our purchasing patterns. Each time use our credit card, search on our smartphones, make a purchase with a certain store card, or travel to a store (GPS tracking,) this data is collected and being analyzed. With all this sharing of information, its easy to feel exposed or that privacy has been compromised. Providing robust security measures, especially surrounding financial data, has to be a high priority. Members need to feel that while you're offering cutting edge products, you also have their well-being in mind. Experts also predict, among other things, that mobile banking technology will continue to evolve, loan decisioning will incorporate purchasing behaviors and habits, not just be based on FICO scores, and cautions that the financial market needs to prep better for Gen Z.
With all these things to consider in order to stay at the forefront of the FinTech arena, you'll need to have a core system in place that can provide technologies like streamlined mobile loan applications, instant card controls, and other E-conveniences, while also having the open architecture needed to be able to ingrate new innovations when you find them. Working with a core system that can not only handle these requirements, but also safeguards your members' financial data, will ensure your member's trust.