Our Atlanta friend Ali Raza, head of UL’s Transaction Security unit, has penned a forward looking piece reviewing the top five payments trends we should look for in 2018. In reviewing the piece, we think he is spot on in his analysis. In particular, we feel blockchain technology (and not just pertaining to bitcoin) and artificial intelligence will continue to sweep across all sectors of fintech, and make much stronger headway in the coming year and beyond. Great piece and worth the read.
By Ali Raza, Lead Principal, Head of North American Advisory for UL Transaction Security
“Gone are the days where standing in a checkout line at the grocery store meant you likely had cash or a checkbook in hand. Gone, too, are the moments where chipping in for pizza to have dinner with a friend required a trip to the ATM to take out money.
These days, technological innovations have fundamentally revolutionized how we pay merchants, as well as each other, for everyday goods and services. This greater digitization of money is driving the dynamics of and changes to the payments ecosystem in unprecedented ways.
“For consumers and the industry at large, this is a magical time,” said Ali Raza, lead principal advisor with UL’s Transaction Security business unit, which supports the finance and payments industry by advising on, testing and certifying new solutions before implementation. “Technology is enabling greater choice, better products and innovative solutions, plus more convenience – all built on a framework of personalized data.”
Over the next several years, people will benefit greatly from the combination of emerging technologies. But before those benefits trickle down to consumers, players within the finance and payments industry will first have to prioritize the investment in and adoption of these emerging technologies and re-calibrate their operational structures to support them.
The following are the top trends poised to impact the finance and payments industry in the coming year, according to Raza:
Artificial Intelligence (AI). While the early stages of solutions using AI technology focused on fraud management, trading, and regulatory and compliance management, there’s no reason why the same principles at work can’t be applied to risk management, marketing and customer relationship management.
Real-Time Payments. The United States Federal Reserve has largely driven the introduction and adoption of real-time payments over the past 18 months, fueled by a desire to support faster, simpler and more intuitive methods across all payment channels…
Blockchain. As it relates to distributed ledger technology, more commonly known as “blockchain,” most developments have occurred either in cross-border payments or in corporate or commercial payments and treasuries…
Open Banking. The most significant development set to re-shape the fast-evolving EU payments market is the revised Payment Services Directive, PSD2, which enables the open sharing of data that banks have historically kept within the confines of their systems…
Fintech-Bank Collaboration. The relationship between fintech companies and banks has shifted from disruption, disintermediation and displacement to collaboration, engagement and acquisition. Both parties now recognize the opportunities for mutually beneficial engagements to both themselves and their customers….”
Full Article at UL.com blog