Fintechs recognized the consumer lending niche and improved customer experience with pre-approvals and quicker funding of loans. Banks may need help. A recent study found that digital lenders doubled their market share in the past 4 years, with consumers across the credit spectrum increasingly turning to digital-first providers.

Source: PwC

Many industries are coming together to commercialize technology for financial services. This innovation and investment surge continue as blockchain and Fintech move from retail to institutional use. The use of the blockchain “public ledger” will become an integral part of financial institutions’ technology and operational infrastructure.

Financial services and tech companies are targeting capabilities like intelligence, NLP, logical reasoning, self-supervised learning, physical sensors, mobility, navigation. In three to five years, we expect evolutionary gains. After that, with new models, powerful and standard modular platforms with self-learn ability, rapid gains are anticipated.

As application offerings improve, and COOs and CIOs get comfortable with the arrangements, technology is rapidly becoming the way core activities are processed. Very soon, consumer payments, credit scoring, statements and billings for asset managers’ basic current account functions will become utilities.