Last week, I shared with you where fintech is at: the growth the industry has experienced and where the investment is. So, has fintech reached its peak? Not so, according to our research. There’s still plenty of room to grow. That’s the topic of today’s blog post.
When looking at the next big trends in the fintech space, one sector that will continue to see strong growth over the next 18 months is blockchain. Investors have shown particular interest in crypto currency and blockchain technology startups recently. In 2014, investments in the sector surged to $349 million, up from $97 million in 2013. Blockchain is a great example of how the financial services community is finding new uses for disruptive technologies.
Financial services firms are also making more investments in cloud technology. A new wave of cloud adoption has banks both beginning to identify which data can be hosted in the public cloud, and using cloud technologies to transform their data centers into private clouds, which offer similar capabilities and services to public clouds.
Cyber security will also continue to see significant growth in the coming year. Financial institutions are rushing to shore up their security systems, and those of their digitally integrated partners, as hackers are getting smarter about breaking those systems down.
The bottom line is that the industry’s actions to become more digital will solidify fintech’s staying power. We’re in the midst of a major disruption in financial services as banks and insurers aggressively pursue digital transformation in various forms, from partnerships to acquisitions to strategic investments. We are on the verge of a complete digital transformation of financial services.
I hope you enjoyed this series on fintech. To learn more, read: