FinTech Trends Businesses Should Be Following In 2018


Business analysist and financial experts see the Fintech sector as the peak of technological innovation and cutting-edge advancements. And, without a doubt, this sector has changed the way we perceive and interact with the investment and banking markets.

Blockchain, artificial intelligence and machine learning are just some of the buzzwords that had a massive impact on financial services and generated enormous growth for small and large businesses alike. The fintech evolution generated more than financial growth; it also led to some new regulations and guidelines. The concept of “responsible innovation” has emerged in the fintech sector.

Because today’s consumers don’t have time for traditional bureaucracy and want to carry their transactions in an easier fashion, Fintech emerged as a much-needed alternative and finally made financial services more accessible. Also, the continuous need for on-demand financing makes the FinTech sector a highly acclaimed and widely-used one. But besides the obvious advantages brought by the sector’s evolution, which are the biggest FinTech trends that businesses should be following in 2018?


“Blockchain” has been a buzzword for quite a while now, and most certainly, those more educated on the matter expected to see it here. Many voices claim that blockchain will take over the banking and financing sector completely. While this can’t be certain, it will most likely change those fields to their core. First, blockchain is expected to improve finance through easier, less time-consuming transactions. While certain steps and activity areas of the banking and transactional system are carried out through dedicated software products, dated methods and processes still exist. In traditional banks, you still encounter paper and dated operating systems. Besides being expensive and time-consuming, financial processes carried through outdated methods also have higher fraud prospects.

The current finance and banking systems are disrupted to their core by emerging blockchain technologies. These emerging technologies bring real-time updates and make changes impossible once a transaction has been operated. In this new context, paper becomes obsolete and fraud, a less likely occurrence.

Some additional advantages brought by blockchain technology in the fintech sector are the lowered costs. In the cryptocurrency world, banking and transfer fees are inexistent, while settlements and clearings can happen immediately. In some cases, even loan applications can be assessed and approved instantly.


Automation deeply changed all industries in the past decade. According to this study, the banking and finance industry is fundamentally changed by emerging automation trends and AI technologies. In the future, the study claims, the banking and finance industry will be automated at a 25% rate. In the automation context, employees in the industry will not be forced to manually operate transactions and manage redundant tasks. Those will be fully automated. As a result, they will only manage more complex, higher-value tasks.

Consumers should expect faster and better services, as well as self-service options for redundant operations.


Big Data

Again, another FinTech trend that is here to change the sector is Big Data. While big data is already present throughout an array of industries, the finance and banking industry seems to fully benefit, as the experts at Contis Canvas claim. Data collection and processing can truly transform some of the widely-used variables and coordinates. Including today, one’s FICO score is the major determinant of their financial stability. However, for many, the FICO score is outdated and obsolete. Other variables might offer a more accurate picture of one’s financial stability, experts claim. In the future, thanks to big data analytics and with an immense aid from IoT, financial operators will be able to analyse one’s stability by using other determinants and offer better, more comprehensive financial offers. Investors and banking institutions, on the other hand, will have easy access to better and more diverse credit models, based on other lending data.

In this context, clients of various financial institutions will have more options, as these entities will assess their financial health based on more variables.

A New Type of Business Will Appear

With these developments, more and more start-ups and ICOs might choose the alternative financing path. In the near future, financial start-ups will appear and change the business climate. Instead of traditional financing options, small FinTech start-ups will find their financing sources in Initial Coin Offerings. Also, big operators in the industry choose to integrate small FinTech start-ups in their internal processes.


The most obvious example is the case of big banking institutions that in 2018, seem to start new acquisitions. And these acquisitions are, in most of the cases, FinTech companies.

New Financing Options and Products

Maybe one of the most exciting FinTech trends for businesses in 2018 is the prospect of new banking products that focus on high-profit segments. Currently, we are witnessing a descending trend in big bank earnings. Instead of focusing on their private consumer, banks will soon focus on their wholesale divisions to recover some of their losses. This way, new mortgage packages and wealth management services will emerge.

New Regulations and Guidelines

While not entirely solidified, the evolution of the FinTech sector led to new regulations and guidelines.

The idea of “responsible innovation” has been brought up more frequently with these technological advancements. While the products themselves haven’t been transformed to their core, their delivery system was fully changed in the FinTech industry. Because of this, new rules and regulations have to be found and implemented, with the consumer’s privacy and protection in mind.

Businesses of all sizes should expect to be affected by the growing influence of Fintech and embrace some of the trends above. Although some say that these emerging trends will only impact the finance and banking operators, the change is still likely to disrupt retail enterprises as well.