Many predictions from our last year's summary of trends are now starting to come true, and are taking shape in implemented projects. We now present a new set of trends for 2018, the predicted results of the growing maturity of technology in banking.
We present practical tips and recommendations on what to back in the coming year, when building an electronic banking platform. These recommendations are a direct result of our experience and observation of the development of the banking and fintech markets.
For the managers of banking platforms, 2018 will be a year of technological renaissance oriented to speed (time-to-market), verified solutions and the ubiquity of technology. There will be no great revolutions, but many well-known solutions will be redefined into much more valuable forms, providing practical tools for both the client and the bank. The characteristics of the coming year will be the transfer of already tested methods to new terrain: mobile technology in the offline phygital world, hybridization of native applications, microservices in the sphere of team management, transfer of fintech marketplaces to bank ecosystems, and instalments already available during checkout to pay later.
We have never seen such a strong interspersal of experiences from the real world and the digital world as today. Technologies that enable this have been developing for years, but now is the time when they will be used on a large scale across the board – including in banking and financial services. We are not talking only about the three-screen omnichannel here, but a trend much broader than the use of a digital screen – we are talking phygital insights.
In the world of business programming, a quiet revolution has been taking place for some time - a turn towards microservice-based software. Many global companies have set themselves the goal of migrating systems to this model. Before our eyes, the revolution proceeds a few steps further. Microservice architecture is no longer implemented only in the technological layer of enterprises, but also seeps into the operating dimension of organizations.
PFM is dead,
long live PFE
Discussions over the years about whether banks can exist without a Personal Finance Manager have finally come to a conclusion. Today it is clear that PFM is essential – but just as a tool for understanding data and the world of finance. According to the title of the Celent report "PFM Is Dead, Long Live PFE", PFM died in its former form, and remains a background tool hidden from users. Now PFE, or Personal Finance Experience, is used to provide information to clients.
Electronic and non-cash payments are systematically replacing paper money. Customers effortlessly use contactless cards, and carrying a credit card in your wallet is nothing unusual. But still, for a large part of customers, shopping and making payments online is associated with stress. Fresh ideas in banking, promising high usability and convenience, are keys to building a competitive advantage on the ever-dwindling banking market.
The revolution in implementing mobile solutions is taking place at various levels, and has sparked much discussion over the years. 2018 will signify an era of prosperity, of appreciation, and of full use of hybrid applications. Thanks to the development of more and more modern mobile devices with increasingly efficient processors and due to the maturity of frameworks used to build hybrid applications, they have become fully-fledged alternatives to native applications.
in open banking
In 2018 PSD and API will not only dominate industry discussions, but will also be the basis for solutions implemented in the financial industry. Banks will also rely on open banking to fill gaps in their product offers through integration with highly specialized suppliers, in areas such as deposits, trading, investments, insurance and coupons. For many banks this will mean a change in the business partnership model and the need to find their feet in a new reality.