Global Finance offers country economic report and best bank lists. Banks have employed the same static, beneficial business model. Crowdfunding, peer to peer lenders, mobile payments, these all seem to be no end to the sky-high valuation of these innovators. Disruptive business models are frequently powered by financing.
Few global fine techs that could be about to disrupt the banks:
The global finance company or the market has been attracting significant investment in recent years as funds; bank themselves, stock markets and technologies such as Artificial Intelligence (AI), the block-chain, and cloud computing and most famous “big data” analytics.
- Circle –
Source : coinpricetracker.com
this app is a social payment that utilizes digital currency payments based on block-chain technology to transfer money in the local area and around the world more like email. It contends with PayPal and transfer wise and utilizes artificial intelligence (AI) machine learning techniques in its operation. Circle asserts it surpassed a billion dollars in transaction volume and has grown its global consumer by last few years. However, this will clear from a low base for what is still a start-up.
- Trov –
Source : cdn-objects.trov.com
Trov has raised $91 million so far in four rounds of venture capital investment from eight different investors, containing Anthemis Group, Oak HC/FT, and Gordon Bell. The on-demand insurance platform is headquartered in California in the U.S. and will roll out in its home this year. It is an innovator in the digital insurance field that permits you to enter details about their personal property to a mobile-based app that links with partner insurance who can give cover for a laptop, camera, sports, and goods.
- Deposit solution –
Source : i.ytimg.com
it has gotten 25.5 million euros in funding from European and U.S. investors such as Valar ventures, the open banking platform is backed by Peter Thiel of PayPal fame who has fixed the series B fundraising last July. Some institutions are known as “client banks” want to shack excess from their books in this era of negative interest rates from the European central bank (ECB).
- Ripple –
Source : valuewalk.com
Ripple is payments based block-chain fin tech technology, which has raised $93.6 million so far in seed and series A and B venture capital (VC) rounds from core innovation capital among others. It began out as a protocol payment providing retail payment, foreign exchange (FX) and end users, but eager to increase into a global network that requires to send money globally.
- Onfido –
Source : s3.amazonaws.com
according to research, Onfido says it blend identity document uploads; geo-location checks and AI machine learning techniques to abet automation to authenticate the users are who they say they are, in an inexpensive manner. It has lifted 30.45 million so far in seed, angel, and series A and B rounds of investing and draws money from ventures.
Banks must focus on the following technologies to respond to future challenges:
- Distributed ledger technology (DLT) –
Source : openinnovation.blog.gov.uk
It is a decentralized electronic ledger system that permits you to save record, share transaction among the independent devices. Block-chain is the buzzword to the financial industry that is the type of DLT.
- Artificial intelligence –
Source : cdn-images-1.medium.com
The evolvements in AI for financial service industry are:
robo advisor, an algorithm AI tool for financial advice that analyses market data to manage the portfolio.
Chatbot, this tool interacts with consumers like human consumer service agent answering customer’s questions, feedback, and suggestions.
- e-KYC and identity –
Source : shuftipro.com
through this way of identity checking function banks generally make their know your customer (KYC) process easily and best.
- Great app with great UX and UI –
Source : careerfoundry.com
Mobile app-based payments are on the climb, banks require to make their mobile banking app smarter since the smartphones as getting smarter.
- Cybersecurity –
Source : ifsecglobal.com
banks and fin techs require having a system in position to tackle the cyber threat. Just a two-factor authentication (2FA) is not enough to begin the growing level of threats.
A disruption is commonly a chance long before it becomes a threat. If banks cannot feel beyond the legacy system, the best shift will be to collaborate.