It’s amazing to think we’re at the end of 2016, but so we are and it’s time to look ahead to all the materialization we may expect from the digitalization of financial services in 2017.
1. Opening up banks via the thrust upon interfaces (APIs)
PSD2 has been a thoroughly discussed topic over the past year and it will remain so. However, more banks have been pro-actively opening up their core banking services to third parties and the disintermediation has begun. This further accentuates the need to invest in new product innovation and client services, which will further accelerate the cooperation between banks and challengers and even the consolidation of the industry.
2. Institutions embrace financial inclusion on all levels
The “unbanked” represent a vast opportunity for banks to reach out to and offer bespoke service to. Fintech and digitalization of finance represent a lowering client acquisition cost and the opportunity to truly diversify audiences and tailor service to new clientele, both in countries such as the US where large demographics still lack access to bank accounts and credit facilities to emerging markets with large potential.
3. Blockchain challenges status quo
During the year of 2016, evaluations into the use of the decentralized technology were vast and in 2017, pilots will be replaced by working prototypes in financial services institutions. While no one knows their success, it is clear the discussion between a closed up black box financial system and the promise of a decentralized, distributed and ‘incorruptible’ ledgering system bring two philosophies at odds with one another to the table.
4. Automation, AI and efficiency accelerates value chain transitions
Through the work toward efficiency in financial systems, organizations have been able to lower the cost of origination, capital acquisition and deal making. This allows organizations to diversify into new product lines and deal with new client segments in new ways. What this also underscores, is the trend toward more corporate efficiency and shapes value chains internally in the organizations. This trend will continue to shake up roles to drive human competence into the areas where it can have the most profound impact and conversely, away from areas where tasks are repetitive and mundane.
5. Large institutions enter the fray, in a prominent way
From our work with institutions around the world, we can see that challengers will be met with institutional level competition and partnerships. Consolidation aside, competition will emerge with blue chip company brands staking a claim to market and attracting client interest from millions of existing clients. Segments will include vertical domains such as private company crowd funding, real estate syndication and peer to peer services. We believe this will serve as a further catalyst toward market development and long term holistic viability.
Looking ahead, 2018 onward
Crowd Valley would like to wish its clients, partners and stakeholders the most sincere year end greetings and share our enthusiasm for the future. Together we are privileged to work with an ecosystem re-imagining itself in practice and see the clear exertions from stakeholders small and large toward seeing a more user-centric, inclusive and transparent financial market emerge. Each step of the journey is important, and we see that leaps are being made in the market and expect a great many results with a profound impact to be rolled out in the coming years.
PSD2 has been a thoroughly discussed topic over the past year and it will remain so. However, more banks have been pro-actively opening up their core banking services to third parties and the disintermediation has begun. This further accentuates the need to invest in new product innovation and client services, which will further accelerate the cooperation between banks and challengers and even the consolidation of the industry.
2. Institutions embrace financial inclusion on all levels
The “unbanked” represent a vast opportunity for banks to reach out to and offer bespoke service to. Fintech and digitalization of finance represent a lowering client acquisition cost and the opportunity to truly diversify audiences and tailor service to new clientele, both in countries such as the US where large demographics still lack access to bank accounts and credit facilities to emerging markets with large potential.
3. Blockchain challenges status quo
During the year of 2016, evaluations into the use of the decentralized technology were vast and in 2017, pilots will be replaced by working prototypes in financial services institutions. While no one knows their success, it is clear the discussion between a closed up black box financial system and the promise of a decentralized, distributed and ‘incorruptible’ ledgering system bring two philosophies at odds with one another to the table.
4. Automation, AI and efficiency accelerates value chain transitions
Through the work toward efficiency in financial systems, organizations have been able to lower the cost of origination, capital acquisition and deal making. This allows organizations to diversify into new product lines and deal with new client segments in new ways. What this also underscores, is the trend toward more corporate efficiency and shapes value chains internally in the organizations. This trend will continue to shake up roles to drive human competence into the areas where it can have the most profound impact and conversely, away from areas where tasks are repetitive and mundane.
5. Large institutions enter the fray, in a prominent way
From our work with institutions around the world, we can see that challengers will be met with institutional level competition and partnerships. Consolidation aside, competition will emerge with blue chip company brands staking a claim to market and attracting client interest from millions of existing clients. Segments will include vertical domains such as private company crowd funding, real estate syndication and peer to peer services. We believe this will serve as a further catalyst toward market development and long term holistic viability.
Looking ahead, 2018 onward
Crowd Valley would like to wish its clients, partners and stakeholders the most sincere year end greetings and share our enthusiasm for the future. Together we are privileged to work with an ecosystem re-imagining itself in practice and see the clear exertions from stakeholders small and large toward seeing a more user-centric, inclusive and transparent financial market emerge. Each step of the journey is important, and we see that leaps are being made in the market and expect a great many results with a profound impact to be rolled out in the coming years.

About the author - Markus Lampinen
Internationally awarded digital finance entrepreneur, active in pioneering new securities models worldwide. Has worked in digital finance since 2009, recruited over 100 individuals, built up a operations on six continents and been recognized as one of the top 100 thought leaders in crowdfunding. Markus has pioneered new funding models in the US and Europe, advised policy makers worldwide - including the SEC, the European Commission and Italian regulator CONSOB - for more effective markets, and worked with visionary organizations such as the World Bank and the Kauffman Foundation to improve frameworks for digital finance. Markus has studied computer science and economics (M.Sc).
Internationally awarded digital finance entrepreneur, active in pioneering new securities models worldwide. Has worked in digital finance since 2009, recruited over 100 individuals, built up a operations on six continents and been recognized as one of the top 100 thought leaders in crowdfunding. Markus has pioneered new funding models in the US and Europe, advised policy makers worldwide - including the SEC, the European Commission and Italian regulator CONSOB - for more effective markets, and worked with visionary organizations such as the World Bank and the Kauffman Foundation to improve frameworks for digital finance. Markus has studied computer science and economics (M.Sc).