Ebook

The State of Fintech and Fraud in 2019

Examining current and future trends for the security of online banking, insurance, lending and payment providers.

1. What is driving the fintech boom
2. Key trends for the future of fintech
3. Fintech’s increasing range of digital threats
4. Fraud fighting for fintechs
5. Key takeaways

What is Driving
the Fintech Boom

THE BROADER FINTECH CATEGORY
CAN BE SEGMENTED INTO FOUR VARIANTS

McKinsey & Company | Source: McKinsey analysis

Aside for the aforementioned catalyst that was the 2008 credit crisis, a number of market forces are creating the ideal ecosystem for fintechs to flourish, whether they are challenger banks or online loan providers.

 

1.1 ACCELERATION OF THE MOBILE ECONOMY

DIGITAL AROUND THE WORLD IN 2018

The world’s ongoing appetite for smartphone use is without a doubt driving the transition from a cash-driven society to one that favours digitized financial services. According to the GMSA 2019 report of the state of the mobile economy, the number of mobile internet users is expected to reach 5 Billion by 2025, growing at a CAGR of 4.8%.

And the list of digitized financial services continues to grow. While nobody would have imagined using a QR code to say, pay for an electricity bill a decade ago, it is just one of the numerous processes facilitated by mobile adoption, along with loan application, mobile banking and insurance purchases, amongst others.

1.2 INCREASE IN PAYMENT CHANNELS

These days, even your local corner coffee shop needs to offer in-store as well as desktop and mobile ordering options. This means accepting physical payment in cash, credit, debit, gift cards, as well as digital payments from mobile wallets on phones and wearables, money transfers from apps, and sometimes even in a variety of cryptocurrencies.

Here is, for instance, a list of the payment methods accepted at Starbucks, according to their website:

  • Gift cards
  • Starbucks Mobile App
  • Chase Pay
  • Apple Pay
  • PayPal
  • Visa Checkout
  • Credit Cards
  • Cash

All of these forms of payment need to occur instantaneously, while ensuring security, reliability, and integration across the business’s other systems. For many firms, offering such a complex web of payments options requires working with third-party fintechs that offer point-of sale hardware, cloud-based software solutions, or payments infrastructure to facilitate these transactions.

Sign up to download

In order to download and read the full e-book please
sign up to our newsletter.