The New Year is only few days around. The year 2018 was characterized by the increasing trend of Financial Technology (FinTech) services. Despite some controversies, FinTech has successfully gained much attention from the community. A number of 2019 FinTech predictions have appeared. They include the increasing annual growth rate of up to 74,16 from 2019 to 2025.
Here Are Some of the 2019 Fintech Predictions
Players in FinTech industry are optimistic about its marketplace for in 2019. This assumption is certainly based upon the trends throughout 2018. The following are some of the 2019 FinTech predictions:
Insuretech Goes Mainstream
The financial technology is still slightly exposed to insurance. However, just like the conventional financial services, insurance will eventually come to this industry. Managing Director of Felicis Venture, Victoria Treyger, predicts that Insuretech will go mainstream in 2019. She is pretty sure that insurance products may be sold in a different way in 2019.
They may come in bundle with home services like home sales, apartment rentals, and many more. As a result, Treyger says that businesses will also see the changes in commercial insurance. They will be more widely available since businesses can directly buy insurance products online.
Cyber Insurance Will Grow Dramatically
A common type of Insuretech that will grow dramatically in the near future is cyber insurance. As businesses go online and hackers are more sophisticated, the need for cyber insurance is increasing. Data breaches had been more common in the last few years. The victims vary from individuals to institutions. Most hackers even target large businesses and social organizations.
Therefore, large businesses will seek for cyber insurance to protect their online transactions and stored data in cloud-based system. Treyger even predicted that some insurance companies would go thorough merger and acquisition. Traditional insurance company will not be able to survive with the current system, unless they adapt to the Fintech services.
FinTech Will Adapt to Online Lending
It is true that online lending industry had been present before the FinTech market. The Founder and Chief Executive of LendKey, Vince Passione, said that not only online marketplace would be exposed to FinTech. So would the lending platform. He predicted that FinTech would bring a new color into the online lending platforms.
Passione said that with FinTech, credit process would be faster. This will benefit the customers. Meanwhile, app developers will take part too. The FinTech-based transactions will depend much upon a reliable app to give excellent services. Therefore, a new revenue system will come to the app developers.
FinTech Will Remain Private
Most of the existing FinTech companies are still private. This is expected to remain in 2019. Until 2018, very few FinTech-based company had launched IPOs. Uber and Airbnb were no exception. Similarly, capital market data showed that most FinTech companies could launch an IPO after being in the market for more than 10 years.
Those are few of the 2019 FinTech predictions. There are, certainly, many others. The discussion above has included cryptocurrency trend as a payment method. Of course, what happens in 2019 may be different from the above predictions. Anything can happen.