Top Three Disruptive Fintechs to Watch in 2017

Juniper Research has revealed the top three technologies set to disrupt the fintech industry in 2017 and 2018. These are:

* PSD2 (Payment Services Directive 2) and Open APIs
* Regtech.
* Chatbots.

PSD2 and Open APIs
The introduction of the revised European legislation ‘PSD2’ will redefine the payments sector as incumbents face new and increased competition. On the flip side, merchants and consumers will benefit from reduced fees and charges.

PSD2 will effectively lead to the creation of numerous third party start-ups which could undercut established players. However, an opportunity exists for co-operation between banks and start-ups; institutions may leverage their established brands in partnership with agile technology start-ups, to press first-mover advantage.

Regtech
Juniper believes Regtech is on the cusp of seeing significant adoption with cost savings and time efficiencies ultimately benefitting consumers too.

For players in the finance and insurance industries facing constant regulatory changes, Regtech will provide enhanced security. It will redefine how stakeholders approach the ever-more complex compliance, regulation and reporting aspects of business, vastly reducing time constraints and improving accuracy.

Chatbots
Chatbots, or automated (script or AI-based) programs, aim to converse with consumers in the same manner as traditional human to human interaction. These will provide significant cost savings, with Juniper forecasting that banking players will save around $4.4 billion annually by 2022.

Research author Lauren Foye explained: “Chatbots currently have low barriers to entry, and are seeing increased adoption across platforms including web-browsers and messaging applications. FIs and eCommerce players will benefit increasingly over the next few years as chatbots help consumer engagement.”