With the advent of PSD2 in Europe, financial services companies have embarked on their Open Banking initiatives, which are set for full swing in 2018. Banks have been writing and exposing APIs for third parties to pull data and perform actions on the banks platforms through these APIs in order to provide more customer facing service innovation. For many banks this is the final step for complying with the PSD2 regulation, but the reality is that it’s only the very first step in the total transformation to an open financial services ecosystem.
Big changes are happening in the financial services industry, with Fintech that has experienced a fantastic growth and with financial technology companies now on pace to see the level of investments to reach a new record in 2017. As part of this, there is a case represented by Real Estate, a trillions dollars sector that has been slow to change, which is seeing a wave of innovation with property technology, or Proptech.
As the adoption of innovative technologies like Artificial Intelligence, Machine Learning, Blockchain, etc. increases, it impacts the rate at which the Fintech ecosystem evolves and affects different markets.
Having discussed the very best Fintech events and conferences for this year, and our suggestions on the 5 best newsletters for Fintech innovators, we thought it would be beneficial by presenting the 20 best Fintech blogs and publications that you may like to follow to keep up with the latest news and developments in the fast changing financial services space.
The sharing economy is defined as “the peer to peer based activity of obtaining, giving, or sharing access to good and services”. Alternative names for this phenomenon include gig economy, platform economy, access economy, and collaborative consumption.
Managing regulations and compliance is becoming increasingly difficult for banks because it is time consuming and expensive, experts claim. For example, when asked by a journalist about the difficulties for top banks in managing compliance costs, a top investor commented: “(…) that is a massive challenge for these banks.”
Non-performing loans are an area of concern for banks especially in tough economic times. NPL portfolios will impact profitability in two areas: 1) loss of the value of the loan not recovered and 2) ongoing management using labor intensive and manual workflows.
2016, a look in the rearview mirror
In mid-2016, the marketplace lending sector experienced some turmoil leading to increased scrutiny from regulators and institutional investors’ concerns about the securitization process and the quality of the underlying loans. However, this slowdown was temporary and personal marketplace loans globally grew by 210% (+64% for small business marketplace loans).
In recent times, everywhere one turns, disruption seems to impacting every aspect of the diversified financial services space, leaving no sector unturned whether it is in lending, borrowing, alternative finance or investment space. Financial technology coupled with social media input is altering the dynamic of the sector in pushing costs lower while creating a more efficient but equally more personalized user experience for investors and borrowers.