June 27, 2017
We, the LTP Team, are excited to share our traditional, collectively captured mid-year snapshot of the most interesting happenings in the year 2017. Following our traditional mid-year reviews (you can find the 2015 Top 10 review here), the 2017 infographic, published on MEDICI, FinTech’s Global Knowledge Network, depicts the Top 10 segments of the FinTech industry globally.
The infographic gives an overview of the following segments:
Download the full infographic for free here.
A multi-card smart card with a cool interface and a smooth UX/UI. Addressed Apple Pay/Samsung Pay/Android Pay’s interoperability issue. Despite functioning, demonstrable cards, investors backed out at the last moment, leaving the firm to file for bankruptcy.
RegTech is proving its usefulness in compliance, risk management, identity management, and fraud prevention. Incumbent firms, as well as startups, are offering cloud-based and on-premises solutions that free up banks’ and FIs’ resources for their core business. AI is being explored as a viable technology.
Bitcoin and Ethereum have jumped almost five times and six times in value respectively in the last one year, with Japan providing a major boost in May by formally recognizing the Bitcoin. The Chinese have been using it to move money to safer havens. Even the 'Wannacry' perpetrators demanded their ransom in Bitcoin!
Some use cases: data security, personalized recommendations, chatbots, alternative credit scoring, IoT, identity management, fraud detection and prevention, compliance, governance, robo-advisors, algo-trading, and smart contracts. RBS (Canada’s central bank) alone has nurtured around 50 AI companies. China is taking a massive lead.
The PSD 2 API was supposed to be the breakout moment for payments and aggregation business, leading to open banking. With the final RTS though, the openness has become subject to FSPs’ willingness to collaborate with challengers. Authentication regulations are bringing in a new set of challenges. Screen scraping has become a battleground.
Identity management has had to stay a step ahead of fraudsters, moving from simple username-password combos to second-factor authentication in various forms including biometrics. With static factors being unable to keep pace, a more dynamic approach is being explored with behavioral biometrics – leading to a more secure, yet reduced-friction model of user authentication.
In this complex world of FinTech – where taxonomy and business models could be too complicated to understand, and innovative startups difficult to keep track of… Thanks to LTP, we have MEDICI.
While getting backing from incumbent banks (BBVA invests aggressively) and alternate investors (Monzo raised ₤19.5 million), can they generate the critical mass needed for them to be sustainable? Tandem’s funding was recently called off at the last moment. TransferWise finally broke even after six years of operations, but how many can do so?
From online shopping to mobile wallet, third-party payments, P2P lending, money market fund, merchant lending, life and non-life insurance, digital-only bank, social credit scoring, in-store and online payment solutions, cross-border payments, the Alibaba group offers it all through its various group firms.
Note: Infographics are rich visual representations of information and data intended to present complex information quickly and clearly. An Infographic is a structured outcome of the primary and secondary research conducted by MEDICI analysts in more than 30 FinTech segments. Infographics can be integrated with the corresponding Segment Snapshot, Research Report and Strategic Insight for a more detailed analysis.