The Fintech sector has a lot to offer - what will 2018 bring?

The Fintech sector has a lot to offer - what will 2018 bring?

Total investments in the fintech sector in the period from January to November 2017 in Europe reached USD 46.5 billion. It is over 3 times more than last year. The number of transactions increased slightly with the significantly higher average value. This is proof that the sector is growing and that fintech companies are growing and attracting more and more capital. What can investors expect in 2018?

This year will bring important changes in the regulations regarding protection of customer data, which may also be an opportunity, according to Łukasz Wierdak, Investment Partner at  MCI Capital . While meeting the PSD2 directive requirements, banks and payment institutions will try to evolve in the so-called one-stop shop for their clients, which in practice may result in offering new services. Also fintechs proposing solutions that meet MiFID II Directive and the GDPR Regulation, reducing compliance costs and at the same time improving user experience, will be highly sought after.

In 2017, more and more people talked about AI and solutions moved more often from the back-office to customer relations. Data collection and analysis will be even stronger in terms of competitive advantage and will enable a more personalized approach by improving user experience, offering products and services tailored to the customer.

Fintechs are much more interested in the SME’s sector. The key will be to combine the ease and speed of the application process with the appropriate verification mechanism of potential customers to minimize the operational risk. The fintech sector has many other areas for growth and further development. That is why the main players will be looking for opportunities for strategic acquisitions or partnerships with providers of innovative solutions.