11 Ways Fintech and Banking Will Change in 2017 Page 2
4. Consolidation, and Winners Emerging
Brew Johnson and Brett Crosby, Cofounders, PeerStreet
Brew: “I think the biggest trends will be consolidation in the marketplace lending and crowdfunding space, and increased partnerships/collaboration between banks and fintech companies.”
Brett: “I’d add that we’ll see a widening spread between the healthy businesses and those that aren’t as healthy. Some dying off and others really taking off. Winners will begin emerging in each of the verticals.”
5. More Mobile Wallet Fraud
Madeline Aufseeser, CEO, Tender Armor
“There should be no doubt that we will see more incidents like the one above where fraudsters will target mobile wallets and apps to get at payment card data… ATM fraud will mount especially as we see FIs expand Cardless ATM applications on mobile devices and through digital wallets. Mobile wallet adoption stays tepid in the absence of a better consumer value proposition and cardholder payment data theft fears remain unassuaged.”
6. Machine Learning Helps the Financially Underserved
Ken Rees, CEO, Elevate
“2017 is the year that where machine learning and data analytics moves beyond the hype and actually starts delivering results. Online lenders in particular are going to start using online information from providers like Yodlee… I think where we’re going to see the biggest impact is services that are focused on the underserved customers, because you really don’t need machine learning to help a customer with a 750 credit score.”
7. Banks Help Connect Merchants and Consumers
Devon Watson, VP Strategy and Operations, Global Fintech, Diebold Nixdorf
“Banks are in a position to better connect customers and merchants together, and I think there is a lot of innovation that will happen next year that will help banks better connect merchants and consumers… I see the bank as a great connective tissue between these two groups and it rarely ever gets used that way, but I think data analytics are the technology under the hood that banks need to turn outward and monetize.”
