Personal assistants such as Samsung’s Bixby is looking into integrating banking services through their partnership with South Korean banks. This is an addition to Samsung’s current Samsung Pay which allows for P2P transactions through voice commands. Mashable has also speculated that there is a possibility of a different form of banking authentication which leverages on current phone security features such as face recognition, fingerprint scanners and iris scanners.
Open banking is expected to rise in 2018 where banks are required to share data with external organizations. General Data Protection Regulation are implemented to ensure a bank’s accountability in securing consumer’s data. Regulations are implemented to ensure that customers data are kept within the organizations. Additionally, banks have to take a privacy impact assessment and hefty punishments are implemented in the event of a data breach. While there are some fears on fintech security in the early days, MacKenzie and Goodbrand are optimistic on its security.
Despite speculation, investors have expressed that they do not believe a fintech startup can replace traditional banks. Investors believe traditional institutions are here to stay. In fact, investors place their trust in fintech startups who aim to work alongside with banks to value add to their processes.
A decentralized network allows for emergence of cryptocurrencies such as bitcoin, creating a global market. With such a system, innovations such as Initial Ticket Offerings (ITO) have emerged. This allows for investors from all over the world to invest in growing companies in Silicon Valley. Wall Street West (VCs in Silicon Valley) no longer have the competitive advantage they had – their close proximity to fast growth startups. Additionally, a decentralized network removes companies need for a data centre which was one of the core reasons many companies searched for venture funding in the first place. A decentralised network allows for a global Wall Street and a fair playing field.
Disruption must start from within and this can be done through partnering with fintech startups. Citi has a history of cooperation through their partnerships with fintech startups. Several fintech startups specializes in a specific consumer group and banks can leverage on this knowledge to better appeal to the consumers to derive greater customer satisfaction.