When Deloitte Ireland hosted a gathering of fintech experts, we had just one question for them: what do you predict will be happening in fintech in 2017?
Blockchain, cybersecurity, PSD2, engagement and collaboration. These are the trends we can expect to follow in fintech in 2017.
According to Deloitte’s own David Dalton, PSD2 is the “big thing” to watch out for next year, as players prepare for the implementation of the revised EU payment services directive in 2018.
“[This] is a new piece of regulation which is focused on driving greater innovation and opening up banking, in particular,” explained Dalton, who is co-lead of the Deloitte EMEA Blockchain Lab.
In its essence, PSD2 requires banks to set up an API on top of their current account infrastructure, which enables third-parties to access users’ bank account information, where permitted.
“Over time, we see the creation of open banking platforms as a result of what PSD2 is initiating. And, potentially, there are opportunities for fintechs to partner with banks to create more interesting customer experiences on the back of this open banking platform,” said Dalton.
This era of collaboration between disruptive new start-ups and age-old financial institutions was also heralded by Keith Fingleton, IDA Ireland’s chief technology adviser for financial services, and Ross Leonard, head of credit cards at Permanent TSB.
“The word is all around collaboration,” said Fingleton.
“You don’t need to be the cleverest person in the room any more but you definitely need to be working with the cleverest people in the room. So that collaborative ecosystem is going to be vitally important,” he said, assuring IDA’s support to encourage this cross-pollination of ideas.
Meanwhile, Cillian Leonowicz, senior manager at Deloitte, believes 2017 will be the “year of the pilot” for blockchain, as it moves from a proof-of-concept technology into production.
Naturally, Jacky Fox, cybersecurity and IT forensics lead at Deloitte, is looking at a precarious future for infosec.
“The amount of attacks that are happening to organisations at the moment are increasing hugely. Denial of service is becoming much more threatening and dangerous for organisations,” she said.
Her advice is clear-cut: “Get your house in order to deal with denial of service attacks that are coming your way.”