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Demystifying the Top 5 Fintech Trends



Dawid Przespolewski, Head of Business Development at Future Processing


Recent years have seen major disruption, business challenges and digital transformation. And the impact on the financial services sector was no different. Driven by fintech innovations, businesses were opened up to a wide range of services that were more accessible than those offered by traditional banking institutions. While dealing with digitally-savvy consumers, who demand quick global payments at their fingertips, organisations soon realised that they must leverage fintech trends in order to meet their customers’ needs and create a profit in the longer term.

Join me for the rest of the article as we demystify the top five fintech trends of 2022 so far and the implications these will have on the wider industry.


The Rise in Decentralised Finance

The emergence of decentralised finance (DeFi) – also known as the Open Finance movement – is separate from the control of a single entity such as the central bank or government agencies. It is a concept that defines financial services that are created in public blockchains, similarly to Bitcoin and Ethereum.

Although financial services companies (centralised systems) have been efficient for years, they offer much less transparency to their customers on how the money is used compared to the open-source and decentralised DeFi applications. That is where DeFi has an advantage, without intermediaries such as brokers, exchanges, or banks to manage settlements of transactions payments happen in real-time. And this seems to be what the financial market needs, taking power away from the institutions that manage money behind the scenes and giving it back to the customers.

Currently, one of the main disadvantages of DeFi is that it is not immune to risks of fraud and theft. Technical issues associated with the protocols can make assets vulnerable to cyber criminals, which is the main reason some may be extra cautious when investing their capital. Additionally recent fluctuations on cryptocurrency market shown how unpredictable DeFi still is and requires much more maturing before becoming a real competition to centralised banking. Nevertheless it is an area to keep an eye on.


Invisible Forms of Identification

Traditional financial institutions often use Know Your Customer (KYC) standards for verification, which protects them against fraud, corruption, money laundering and terrorist financing. Fintech tools will now allow users to create bank accounts without the need for those forms of identification, with all necessary information stored virtually in the cloud.

In particular, fintech will help many companies in opening bank accounts without the need for KYC verification using identification documents. Supplying more individuals with financial services is likely to render far greater access to financial services such as borrowing and even the investment tools that could become a crucial step in financial security, better debt management and the creation of businesses.


Exploring Artificial Intelligence Capabilities

Artificial Intelligence (AI)-powered finance assistants have drastically risen in popularity during and following the pandemic. As data gets systematically stored in the cloud, it allows for AI to step in to solve problems regarding frequent issues, which allows for quicker response. The human touch is reserved for more personal matters like advising or supporting clients’ understanding of their financial situation.

But AI can be serving a much wider purpose than just customer assistance. AI-powered analytics are highly efficient when applied to data-based procedures. AI systems can now be utilised in fraud detection, lending decision-making, credit risk assessment, insurance, wealth management and more. Precision levels and high-speed query resolution of AI systems are showing results unmatched by any other system. It is safe to say that in the next few years, we will be able to observe many more processes using AI in the fintech industry.


Cloud Technology Continues to Thrive

The emergence of hybrid cloud solutions has allowed for real-time data integration which opens services to share information between different applications, bringing the benefits of scalability and security to the rapidly growing platforms.

Cloud enables the management of financial processes from afar. Self-service applications based on cloud technology allow businesses to deliver at a fast pace. Also, businesses can utilise cloud technology to collect and store large amounts of data securely and accessible at any time. Especially for fintech which utilises data from onboarding and identity verification procedures to account management, balance checking, and analysis of spending patterns. Beyond day-to-day processes, the cloud allows the creation of a recovery plan for any digital infrastructure in case of a disaster, which would save any business but is simply necessary for financial technology.

Over the last decade, the cloud has become the foundation of many business operations. The financial industry in particular will continue adopting the solution across many platforms, as it shows how big an impact cloud computing has on making the financial world more accessible.



Sustainability is a growing trend reflected in the fintech sector, which can be observed in product design, tracking carbon footprints, or providing accessibility and financial inclusion.

This trend is showing a real need for a shift in the economy. As sustainability becomes a huge part of all industries, consumers are more conscious and demand from brands they choose to share their values. Lately, the introduction of regulations demanding that organisations implement ESG in their operations makes sustainability more than just leverage, but a requirement. Additionally, as communities expect more action toward sustainability, financing those startups that aim to aid environmental issues become an area that fintech can support.

Fintech is a growing force in the financial market and has already shown to be a great driver in shaping a better future. As more organisations trust new ways of managing their finances, it paths the way for technological innovation in the financial world. Over the next few years, we will be able to see further applications and developments of the above-mentioned trends and as 15 years ago no one knew that banking could evolve into a service that is widely available to almost anyone and any business, certainly we can expect more improvement in this area in the future.



Where is the value in generative AI for financial services?




AI and machine learning

Michael Conway, Executive Partner, Data, AI and Technology Transformation Service Line Leader at IBM Consulting


The New York Times recently suggested generative AI has reached a tipping point. According to the newspaper, it’s having a “Netscape moment” – the instant where a technology triggers wide-spread, irrevocable change. Back in the ‘90s the Netscape browser unleashed the nascent power of the internet. Today, generative AI applications that can instantly produce natural language or even computer code are creating a similarly epoch-defining moment.

While it has been the consumer-focused applications of generative AI that have driven sensational headlines and captured mainstream attention, the underlying capabilities have caused businesses to sit up and pay attention. Recent IBM research found that 64% of CEOs face significant pressure from investors, creditors, and lenders to accelerate adoption of generative AI.

The banking sector has a reputation for being on the front foot with technology, but many institutions remain underprepared or unsure about how to profit from generative AI. In tandem, commentators are now talking about us reaching ‘peak generative AI’, adding to the confusion facing leaders. This risks undermining the potential benefits the technology has to offer.

Success in the long-term depends on experimentation and iteration. Here are three fundamentals that businesses can focus on now that will place them among the early winners in the generative AI era.

Michael Conway

Start with the customer experience

Today, every product is a digital product — and every company is selling a digital experience. The increasing demand for a seamless, personalised experience is driving steep competition, but businesses that can tap into the power of generative AI will leap miles ahead of their peers.

For example, a bank could use generative AI to rapidly analyse their own customer data—as well as data from social sources and partner organisations to determine which customers are most likely to take certain actions, such as opening a new account, investing assets, or applying for a loan. The AI system can then help bankers achieve true one-to-one marketing with a personalised strategy and automated, point-in-time customised offers, translated into the customer’s preferred language.

Financial services businesses can also leverage generative AI to shift digital customer service interactions from the customer needing to ask the right question, to the virtual assistant making the right suggestions intuitively. It could ‘remember’ previous conversations with the customer and know which products and services the customer is using, allowing it to provide smarter, more helpful advice. When combined with more human-like language skills, this deeper level of service will help financial institutions to build better, longer-term relationships with customers.

Supporting and upskilling employees

Looking beyond chat bots, AI can also add more value for customer service professionals. With AI and automation tools taking care of the more repetitive, mundane tasks, teams will have more time to work with customers on more complex needs and situations that call for more of a human touch. The businesses that excel in using AI and automation to augment their workforce are likely to have a sizeable competitive advantage.

To be successful, companies must be prepared to invest appropriately in upskilling colleagues so that they can work with the latest AI tools. Working with partners that can bring the right AI transformation expertise can also help businesses to bridge their skills gaps in the more immediate term. At IBM, we’ve set up the Centre of Excellence for Generative AI within IBM Consulting to help clients move forward quickly with putting this capability to work in their business.

Invest wisely in the right AI platform and expertise

It’s important to underline here that, when it comes to business use cases, we’re not talking about any old generative AI tools. While consumer applications can get away with producing incorrect or even offensive output, financial institutions have no such room for error. Customers of banks need accurate, reliable information, delivered in a professional manner that’s consistent with the bank’s overall brand experience. And that’s before you get into the requirements of financial regulators.

Using an AI platform designed for the needs of enterprises in highly regulated industries is therefore a must in financial services. That means the AI models being used are comprised of data that has been screened for things like bias or harmful content and which can be traced to its source. It means the data and the AI models the institution is using have governance controls baked in, so that the outputs are explainable and transparent.

Financial institutions also need AI models that are tailored for the specific domain areas of their business and that are interoperable across different cloud environments, which is important to regulators like the FCA. As IBM AI is built for businesses, we have built all of these requirements into our watsonx AI and data platform for the enterpise.

Commercial value beyond the hype

Are we in a generative AI hype cycle? Yes. But don’t be fooled. This technology is already starting to transform financial services – and virtually every other industry. Those who can harness it effectively stand to reap immense benefits – from more satisfied customers to lower costs, greater productivity and faster innovation.

Don’t wait for the perfect conditions, they’ll never come. Start now, start small, then scale your generative AI applications across the business. Focus on the use cases where you can gain early commercial value – such as customer experience and automating repetitive tasks – and work with technology designed for the enterprise. In a couple of years, you’ll be very glad you did.

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Investing In Bitcoin: What You Need To Understand Before You Buy




Bitcoin—the digital currency that launched a financial revolution—is more than a trending investment. This decentralized currency, free from traditional banking systems, presents a unique set of opportunities and challenges. It’s crucial for investors to tread carefully, fully grasping the intricacies of this complex yet alluring financial landscape.

The Birth and Evolution of Bitcoin

In 2009, an unknown entity going by the name of Satoshi Nakamoto introduced Bitcoin to the world. Unlike traditional fiat currencies, Bitcoin is a digital currency that operates without a central bank. Transactions are verified by network nodes and recorded on a public ledger known as the blockchain. Over the past decade, Bitcoin’s value has fluctuated wildly, reflecting the market’s ebbs and flows, as well as its adoption into mainstream finance.

Developers continually adapt and modify the Bitcoin codebase, making it more robust and secure. However, being open-source also makes Bitcoin susceptible to scrutiny, potential regulation, and even forks—events that create new, separate cryptocurrencies. An understanding of Bitcoin’s origins and technical underpinnings can give investors a more profound comprehension of its true value and potential drawbacks.

Keeping Tabs on Market Conditions

Cryptocurrency markets are notoriously volatile, and Bitcoin is no exception. Prices can swing dramatically within short periods, influenced by market sentiment, macroeconomic factors, and regulatory changes. Seasoned traders often use technical analysis, charting historical price movements to predict future trends.

To stay updated on market trends, many investors turn to a reliable crypto and bitcoin news site like News BTC. This source provides up-to-date information that can be vital for making informed investment decisions. Additionally, the burgeoning field of crypto analytics offers tools and platforms that provide deep insights into market behavior, helping you decipher the market’s seemingly random oscillations.

Understanding the Risks

Risk management is at the heart of any investment strategy, but with Bitcoin, the rules are still being written. The cryptocurrency landscape is rife with tales of lost fortunes due to forgotten passwords, hacks, and market crashes. Security is paramount; using hardware wallets, two-factor authentication, and keeping backup phrases secure can go a long way in safeguarding your investment.

But risk extends beyond security. Regulation is a looming specter in the crypto world, and government actions can have immediate and dramatic effects on Bitcoin’s price. For example, when China banned financial institutions from offering Bitcoin-related services, the market reacted with a swift and significant downturn. A nuanced approach to these risks can make the difference between capital preservation and costly mistakes.

Diversification and Investment Strategies

Adhering to an investment strategy can also help manage risks effectively. Whether you choose to day trade or hold long-term, having a disciplined approach is essential. Strategies like dollar-cost averaging, where investments are made at regular intervals regardless of price, can help mitigate the impact of volatility and lower the average cost of your Bitcoin holdings over time.

Tax Implications and Record-Keeping

While it’s easy to get caught up in the allure of high returns, it’s essential to understand the tax implications of your Bitcoin investments. In many jurisdictions, cryptocurrencies are considered property, not currency, and are therefore subject to capital gains tax. Investors must keep meticulous records of all transactions, as well-rounded documentation will simplify tax reporting and potentially save you from penalties.

Professional advice from tax experts familiar with cryptocurrency regulations can provide invaluable insights. Also, various software tools are available to help track your transactions and calculate potential tax obligations. Ignorance is not a defense in the eyes of tax authorities, making it crucial to stay informed and prepared.

The Takeaway

Bitcoin investment is not for the faint of heart. From understanding its complex technical foundations to keeping tabs on market conditions and managing risks effectively, the arena demands a well-rounded, educated approach. With potential for high rewards but equally high risks, Bitcoin requires investors to be vigilant, diversified, and ever-adaptive. As the world of finance continues to evolve at a breakneck speed, it’s those who invest the time to understand this dynamic landscape that will likely reap the most significant benefits.

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