The holiday season came to an end, everyone is preparing for the active phase of the business season. Ukrainian payment sphere, survived much of the last year, is waiting for the new changes and announcements. So, in 2019 began by discussing the roadmap of the NBU currency regulation. As the person who monitors global trends in payment technology, I really wonder which of them will become reality for Ukraine in 2019. My first entry this year I want to dedicate the main talking points in the world market and how they can be implemented in Ukraine.
Thanks to the development of mobile banking all realized how important end-user of the smartphone as the payment base. Last — analogue of the multitool for the modern user, because all who work with money, make projects mobile payments. Thus, the money continues and will continue to do in the FINTECH sector in a wide range of companies: aquaring, online payments, micro-credit, QR and NFC payments. From whence cometh the money? Banks will increasingly join the Finance just to have an advantage in the “figure” and to beat the competition.
Here we see a clear course of our government on cashless economy, which begins to go into meaningful action. Legislative initiatives designed to regulate, however, to make life easier FINTECH business, are accepted in the developed part of the globe (which is the implementation of PSD2), it is a question of survival in the digital future. Looking for concrete action from European regulators, the popularity of N26, Revolut and others, as well as statements made by Christine Lagarde in support of the fintech sector, the non-cash economy in the EU is seen as a competitive variety of projects for the people from the FINTECH companies, where the national banks play the role of Issuer of currency and a conditional policeman.
This all goes in Ukraine: our gosregulyator away from total supervision to differencirovannoe risk allows more payment transactions online, reducing restrictions on existing ones. Business these signals sees and begins to use it.
Definitely will grow here Ukraine is United with the world, but for different reasons. In a world of p2p money transfers continue to grow thanks to the widespread use of smartphones and the convenience offered by applications. In Ukraine, transfers grow at the expense of active labour emigration: money flows to Ukraine from abroad. Naturally, smartphoneware and “4G-zation” is also affected, but it is rather the technical aspect, reinforced by the care active population online.
Will develop as existing products in the field of translation, and new ones to appear. To declare itself and become popular, to drown in an existing niche cards will be cramped. You will need the development of new approaches and segments ninclusive audience.
Data protection: biometrics and not only
Fintech companies are using new tools to combat fraud and develop fraud control. Among them, machine learning, automation, cloud technologies. The first will significantly improve the fraud detection in conventional financial systems — and so will amplifies the processing of banks and NPSD (for example, processing LeoGaming)
Almost all billing companies have adopted biometric technologies such as fingerprint scanning and facial recognition, in their core products. The use of technology will grow exponentially thanks to mobile adoption and the fact that you can not create a system and database, and to use the build-function smartphones.
Banks and FINTECH companies: a worthy Union
The most powerful us banks with more than a century of history actively implement new solutions developed by FINTECH-strtable, for payments and lending. This is done for two reasons: first, the old technology companies are failing to keep pace of the modern world and don’t want to change. Secondly, even buy a startup is cheaper than ordering a complete solution from the old-fashioned partners. Banks is money — fintech-companies — ideas and their development. More worthy of the Union is difficult to imagine.
Banks were increasingly establishing departments of innovation development consisting of or a whole team of former FINTECH startups, or from industry professionals with a decent background. The task of such departments is to keep the customer from migration to N26, Revolut, Monzo etc.
In Ukraine the situation is almost identical, but us banks are also looking for new sources of revenue and customer retention with its Deposit accounts. Some banks go further and develop convenient tools of financial management for small businesses — without the involvement of non-Bank payment companies.
Modern payment field came to an interesting trend: not enough to provide a good working product or you can create a rewarding experience. Companies need to earn the trust of their customers, and they will beat the competition that do not take into account this moment. All this gives rise to a new bout of competition and mikronisi opportunities, which in 2019 will be much more interesting than the previous one.
Fintech Main aspects and trends of 2019: personal assessment
The holiday season has come to an end, everyone is preparing for the active phase of the business season. The Ukrainian payment industry, which has to have outlived much over the past year, is awaiting new changes and announcements — while 2019 began with an active discussion of the roadmap about the NBU currency regulation. As a person who tracks world trends in the sphere of payment technologies, I’m very interested, which of them will become a reality for Ukraine in 2019. I want to devote my first 2019-th article to the main talking points in the world market and how they can be implemented in Ukraine.
Thanks to the development of mobile banking, everyone understood how important the smartphone is to the end user as a payment base. The latter is an analogue of the multitool for a modern user, because everyone who works with money makes mobile payment projects. Thus, the money continues and will continue to flow into the Fintech sector in a wide range of companies: equity, online payments, microlending, QR and NFC payments. Where does the money come from? Banks will increasingly join the financing of everything in order to have an advantage in the “figure” and bypass competitors.
The legislative framework
Here we see a clear course of our government on the cashless economy, which is beginning to increasingly go to real actions. Legislative initiatives designed to resolve, but at the same time simplify the life of the fintech business, are taken in the developed part of the globe (which is worth implementing PSD2), it’s a question of survival in the digital future. Looking at the actions of European regulators, the popularity of N26, Revolut and others, as well as statements by Christine Lagarde in support of the fintech sphere, non-cash economies in the EU are seen as a competitive variety of projects for the customers from fintech companies, where national banks act as currency issuers and conditional gendarme.
Everything goes to this point in Ukraine: our state regulator goes from total supervision to differentiated risk monitoring, allows more and more payment transactions online reduces restrictions on existing ones. Business sees these signals and begins to use it for good.
They will definitely grow — here Ukraine is united with the world, but for different reasons. In world perspective, p2p money transfers continue to grow thanks to the widespread adoption of smartphones and the convenience offered by applications. In Ukraine, transfers grow due to active labor emigration: money comes to Ukraine from abroad. Naturally, smartphonemaking and “4G-zation” also affects, but this is rather a technical aspect, supported by the active part of the population going online.
Both existing products in the field of translations and new ones will develop. To declare oneself and become popular, it will be cramped to drown in the existing niche of card transfers. It will take the development of new approaches and segments of non-inclusive audience.
Data protection: biometrics and more
Fintech companies use new tools to combat fraud and develop fraud control. Among them are machine learning, automation, cloud technology. The first will significantly improve the detection of fraud in traditional financial systems — and this will enhance the processing of banks and non-bank financial institutions (for example, LeoGaming processing)
Almost all payment companies have adapted biometric technologies such as fingerprint scanning and face recognition, into their main products. Using this technologies will grow exponentially due to the mobile implementation and the fact that you don’t need to create your own system and database, but use the build-in functions of smartphones.
Banks and fintech companies: a worthy union
The most powerful American banks with more than a century of history are actively introducing new solutions developed by fintech for payments and loans. This is done for two reasons: first, the old technology companies don’t keep up with the pace of the modern world and don’t want to change. Secondly, even buying a startup is cheaper than ordering a complete solution from the old-fashioned partners. Banks are money, fintech companies are ideas, as well as their development. A more worthy union is hard to come up with.
Banks are increasingly creating innovation development departments, consisting either entirely of a team of former fintech startups, or of industry experts with a worthy background. The task of such departments is to keep the customer from migrating to N26, Revolut, Monzo, etc.
In Ukraine, the situation is almost identical, but our banks are also looking for new sources of income and customer retention points with his deposits. Some banks go further and develop convenient financial management tools for small entrepreneurs — wit the participation of non-bank payment companies.
The modern payment industry has come to an interesting trend: to provide a little well-functioning product or to create a useful experience. Companies need to win the trust of their customers, and they will bypass competitors who don’t take this point into account. All this creates new rounds of competition and microniches of opportunities, 2019 against which will be much more interesting than the previous one.