Top 5 Trends to Watch in 2018 [Page 3]
Fintech Regulation
Following PSD2, the major European regulation that requires European banks to open their APIs to non-bank payment services providers, many industry experts are predicting that the North America market will take a cue and adapt some changes. Just look at Bank of America Merrill Lynch’s recent launch of its API Gateway, for instance.
Although it is important to note that the PSD2 was a regulatory mandate from the Council of the European Union. In the U.S., banks do not have a regulatory body mandating such changes, but that doesn’t mean they will not happen.
It is also important to remember that while European regulations like PSD2 or even MiFID II (or Markets in Financial Instruments Directive 2) are key components to moving the global narrative forward, it doesn’t all begin and end in Europe. As Matthias Setzer, chief commercial officer of payments processor PayU, told Bank Innovation, “It’s important not to forget that regulation is a global trend.”
Take India for instance. Through government backed efforts (like the Adhaar card) various fintechs, banks and tech companies are working to make the country predominantly cashless with features like Google Tez and cardless ATMs, among other things. Then there’s Brazil, which recently introduced regulatory changes for marketplaces similar to PSD2.
Fintech regulation, indeed, seems like a global trend. Stay tuned.
Aside from the above mentioned top five, there are some honorable mentions that Bank Innovation predicts will make it big this year. Digital lending from large financial institutions like Goldman Sachs through Marcus to smaller fintechs like Affirm, likely to have a transformative year. Then there’s cross-border payment and money remittances, two areas that have a lot of potential for growth. In 2018, banks and FIs are likely to focus more attention on these areas and use new technologies to make their mark here. In fact, Bank of America, with its many blockchain technology patents, might already be working on that. IBM certainly is, at least.
Hello 2018.
— Grace Noto, Associate Editor, and Phil Ryan, Senior Editor, contributed to this article.
To learn more about the latest developments in all things fintech and digital banking, join us on March 5-6, 2018 at the Parc 55 in San Francisco for Bank Innovation 2018. Click here to register.
