In response to the unbundling of big banks and the boom in emerging players across various fintech sub-sectors, I expect to hear a lot more about technology regulations – or regtech as it’s becoming known – in 2016. Compliance and regulation are critical to a fintech’s success and sustainability. With financial regulation and reporting requirements becoming more complex, a growing industry will emerge around the periphery to ensure both large, traditional financial services companies as well as emerging companies stay on the right side of the regulators.
There’s so much potential for growth and disruption here – the insurance industry is two steps behind in terms of technology, user experience and customer engagement. We expect to see significant enhancements in the way businesses and consumers insure themselves.
Consolidation in the alternative lending space
The ever-increasing cost of regulation and customer acquisition will result in market consolidation, especially in the alternative lending space which has become increasingly competitive. We’re predicting numerous strategic acquisitions by the fastest-growing players in 2016 and beyond.
Infrastructure and payments
In December 2015, we asked fintech leaders where they see the greatest opportunity for disruption in fintech. The majority (37%) said infrastructure and payments, where London is still very much in build mode. Expect substantial growth here.
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