A few days ago, the famous American startup incubator Y Combinator (YC) 2016 Summer Demo Day was held as scheduled, debuting the field of new companies covering artificial intelligence and robotics, biotechnology, educational technology and financial technology.
In Fintech's financial technology field, which is considered as one of the next outlets, its growth has fallen from a ratio of 26% of YC Demo Day in summer 2015 to a change of about 10% in the quarter so far, causing the industry to pay attention to its future trends and directions. Well, in fact, Fintech's development has been in place for nearly a decade now. Looking at the future of Fintech today, what changes and trends will it present? Comprehensive CBInsights, Bank Innovation, and FINOVATE latest report forecasts are organized as follows:
Biology will be closely integrated with financial managementBank Innovation pointed out that Prudential UK first proposed the concept of “life cycle financial plan†which is based on biological knowledge and algorithm technology to help people understand the dynamic characteristics of current financial risks, and then based on the risk analysis of each life cycle of each person. , plan insurance plans that are suitable for responding to changing risks.
This may seem difficult to achieve, but in reality we only need to continuously optimize our AI deep learning algorithms and models. Today's insurance technology start-up companies are exploring this model in this direction.
According to the latest report from CBInsights and KPMG, financing in the global financial technology sector in the second quarter of this year was 49% lower than the previous quarter and 51% lower than the same period of last year. However, insurance technology, which is not yet covered by FinTech, still attracts a lot of financing. The amount of financing in the second quarter reached US$1 billion.
Weather data will be more important
Bank Innovation pointed out that in the past few years, improvements in algorithms and advancements in technology have made humans' weather forecasts more accurate. The weather data began to affect our economic operations more profoundly.
According to Lux Capital Capital Samuel Arbesman, “First of all, mastering weather changes is critical for a large number of human activities, from transportation to raising agricultural production, and even managing disasters,†he wrote.
From the perspective of financial opportunities, better understanding of weather data will give us an opportunity to improve our business loan, risk management, insurance, and credit rating.
The "weaponization" of financial services will continue to expandCan you imagine what would happen if a country could not pay by credit card? And when a country can no longer use SWIFT (Society for Global Banking Financial Telecommunication), how will this affect its economy?
Although a brief review of the geopolitical issues in the United States and Iraq can also be found, financial services will become increasingly “weaponized†in 2016 and in the future. The core of the geopolitical issues between the United States and Iraq is the financial sanctions imposed by the White House. In this way, it seems fair to say that as financial services become more common, whether or not NFC payment or blockchain and other more dynamic digital financial services have brought about changes, the impact of “weaponization of financial services†is of far-reaching significance. .
Break the rules: digital financial transactions
A report last month by CBInsights on fintech’s next nine predictions pointed out that banks will be challenged by increasing numbers.
Up to now, several digital banks have been launched in the UK, Germany and other places, including domestic attempts. These banks under the relevant supervision, based on face recognition, big data and other technologies, can run entirely through the app. In essence, the challenge facing banks is the challenge of technology to the rules of traditional financial institutions—intelligent to simplify rules.
In a number of start-up companies in the 2016 Summer Y Combinator Demo Day, the use of algorithms to complete litigation financing, complete loan documents, and new financial exchanges designed to eliminate competition in the same network are the elimination of traditional rules.
Technology giants make system payments
According to CBInsights' investigation and forecast, from the current development trend of mobile payment, the future payment field will be dominated by Samsung, Apple, Google and other technology giants.
AI-led hedge fund transaction development
Relying on computer algorithms and specific mathematical models for trading, this has been commonplace on Wall Street. According to the data of Preqin at the beginning of the month, there are about 1,360 hedge fund transactions in the United States which are programmatic transactions. They account for approximately 9% of the entire hedge fund market, and the amount of funds managed is approximately US$197 billion.
People who fail to get full financial services will be concerned
In today's world, a considerable number of people still do not have sufficient financial services. They do not even have their own bank accounts. Of course, it is also difficult to enjoy related services such as lending and investment banking because of the lack of credit assessment data. Therefore, financial technology companies such as Big Data Credit will face great market demand.
Not only that, despite the fact that the market has already appeared in a few payment-like fintech companies, there are still two pay-themed start-up companies in the summer 2016 Y Combinator Demo Day, one of which is Flutterwave to solve Africa's broken, low The problem of an efficient financial payment system aims to achieve a unified integration of disparate and disparate payments. Unlike previous payment changes aimed at decentralization, Flutterwave wants to create a center. Faced with all aspects of the backward market, blind pursuit of the latest technology does not seem to be the best solution.