# The Fintech Revolution: Trends to Watch in 2016 Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2016-09-07 Category: BUSINESS Category URL: https://financedigest.com/category/business Meta Title: Key Fintech Trends for 2016: Blockchain, Open APIs, Meta Description: Discover the latest Fintech trends for 2016, including Blockchain, Open APIs, Insurtech, and Mobile services. Don't miss out on the future of finance! URL: https://financedigest.com/the-fintech-revolution-trends-to-watch-in-2016html ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/hands-coffee-cup-apple-1736844546069-compressed.jpg) Fintech is revolutionising the financial sector.  Last year, the financial industry erupted with Fintech companies reportedly making $7.6 billion in investments, a 69% increase on 2014 and a 407% increase on 2013. With Fintech threatening to profoundly shake up traditional business models in industries ranging from insurance and banking to [investment management](http://www.ramseycrookall.com/), its soaring success and popularity is posing imminent challenges and opportunities for many existing players. It is an exciting time for Fintech as we start to see some interesting patterns emerge for the future. Let’s explore some-must [watch trends](https://www.financedigest.com/top-5-investment-trends-to-watch-this-summer.html "Top 5 Investment Trends to Watch this Summer") for 2016. **Blockchain** Blockchain has become a buzzword of the financial [sector](https://www.financedigest.com/the-importance-of-role-models-and-policy-in-encouraging-more-women-to-pursue-careers-in-the-finance-sector.html "The importance of role models and policy in encouraging more women to pursue careers in the finance sector") in the last 12 months. Steve Norton gives the perfect layman’s definition of [Blockchain as being a ‘data structure that makes it possible to create a digital ledger](https://www.financedigest.com/blockchain-a-case-for-the-general-ledger.html "BLOCKCHAIN: A CASE FOR THE GENERAL LEDGER") of transactions and share it among a distributed network of computers. It uses cryptography to allow each participant on the network to then manipulate the ledger in a [secure way](https://www.financedigest.com/behavioral-biometrics-simple-and-secure-way-to-authenticate-consumers-digital-identities.html "Behavioral Biometrics: Simple and Secure way to Authenticate Consumers’ Digital Identities") without the need for a central authority.’ A recent report from the World Economic Forum predicts that Blockchain will eventually occupy a central [role in the global financial system](https://www.financedigest.com/the-role-embedded-finance-systems-will-play-as-commerce-goes-increasingly-digital.html "The Role Embedded Finance Systems Will Play as Commerce Goes Increasingly Digital").  This is one of the strongest endorsements yet for the new technology. **Open APIs** Utilising [open APIs for financial services is on the rise](https://www.financedigest.com/the-future-of-financial-services-how-apis-are-fuelling-the-rapid-rise-of-open-banking.html "The future of financial services – how APIs are fuelling the rapid rise of Open Banking"). It is thought that APIs are one of the principal reasons that start-ups are able to build their products at a faster rate. With open APIs, developers are able to build custom [applications that are versatile for any type of user](https://www.financedigest.com/industrial-gauges-market-competitive-growth-strategies-based-on-type-applications-end-user-and-region.html "Industrial Gauges Market Competitive Growth Strategies Based on Type, Applications, End User and Region"). They can be used by any developer in order to provide a quick and proven [solution to any software](https://www.financedigest.com/healthcare-software-solutions-to-ride-the-pneumatic-compression-therapy-market.html "Healthcare Software Solutions to ride the Pneumatic Compression Therapy Market") diagnostics. Not only are Fintech start-ups benefitting for open APIs, but banks like Capital One, Citigroup and the Bank of America are also acknowledging the fact that open APIs are a method of retaining and engaging [digital customers](https://www.financedigest.com/the-advanced-wound-management-technologies-market-to-grow-based-on-customized-digitization.html "The Advanced Wound Management Technologies Market to grow based on customized digitization"). **Insurtech** The [insurance sector](https://www.financedigest.com/how-process-automation-increases-productivity-in-the-insurance-sector-while-giving-employees-room-for-more-high-value-activity.html "How Process Automation increases productivity in the insurance sector while giving employees room for more high value activity") is screaming out for Fintech in a way unlike any other sector. Tech solutions can allow providers to target the right customers, [cut the cost](https://www.financedigest.com/trend-micro-vision-one-stops-threats-faster-streamlines-operations-and-cuts-costs.html "Trend Micro Vision One Stops Threats Faster, Streamlines Operations and Cuts Costs") of their claims, price efficiently, and referee risky behaviour. A key instance of Insurtech feeding into our everyday lives is a home security system [global insurance](https://www.financedigest.com/how-the-global-insurance-market-will-keep-pace-with-evolving-risks-through-data-analytics-and-technology.html "How the global insurance market will keep pace with evolving risks, through data, analytics and technology") giant Aviva backs. Cacoon is a home security system which tracks any sound made by intruders, and then videos them. Users of this technology benefit from traceability of intruders, and increased security. Most importantly, insurers can monitor how frequently a house is left unattended, allowing companies to provide more accurate pricing. Elsewhere, a London-based start-upfocuses on targeting millennials through their chat-bot automated [digital insurance](https://www.financedigest.com/insurers-beware-fraudsters-love-digital.html "INSURERS BEWARE: FRAUDSTERS LOVE DIGITAL!") agent which uses personalised user data to provide a tailored conversation. Their [platform allows users to communicate](https://www.financedigest.com/cloud-communication-platform-market-2022-scope-of-current-and-future-industry-2030.html "Cloud Communication Platform Market 2022 | Scope of Current and Future Industry 2030") with the chat-bot in the same way they would with a friend on Whatsapp, Skype or Facebook Messenger. [**Mobile services**](https://www.financedigest.com/rebound-in-the-oil-gas-exploration-and-production-activities-to-boost-mobile-servicing-rig-market-fact-mr-report.html "Rebound In the Oil & Gas Exploration and Production Activities to Boost Mobile Servicing Rig Market, Fact.MR Report") Approximately $27 billion is [expected to be spent through global](https://www.financedigest.com/polyurethane-dispersion-market-globally-expected-to-drive-growth-through-2031.html "Polyurethane Dispersion Market Globally Expected to Drive Growth through 2031") mobile payment transactions in 2016 alone. On an individual level, it is expected that each user will spend an [average of $721.47 annually](https://www.financedigest.com/average-annual-uk-grocery-bill-highest-since-at-least-2008-industry-data.html "Average annual UK grocery bill highest since at least 2008 -industry data"). Users [across the globe](https://www.financedigest.com/germany-u-s-agree-to-new-covid-curbs-as-omicron-spreads-across-globe.html "Germany, U.S. agree to new COVID curbs as Omicron spreads across globe") are increasingly drawn to online-enabled banking due to its convenience. Mobile and online banking is the first time customers can take their banking into their own hands, without having to enter into a financial [institution](https://www.financedigest.com/top-5-security-technologies-that-every-finance-institution-workplace-should-consider.html "Top 5 Security Technologies That Every Finance Institution Workplace Should Consider"). Not only is [mobile banking](https://www.financedigest.com/why-you-should-use-a-mobile-banking-app-and-how-to-make-the-most-of-it.html "Why You Should Use a Mobile Banking App – and How to Make the Most of It") extremely accessible, it is becoming more personalized every year, allowing financial services to interact with their customers and users to receive the best experience. **[Artificial Intelligence](https://www.financedigest.com/artificial-intelligence-ai-to-catalyze-the-trichomonas-rapid-testing-market.html "Artificial Intelligence (AI) to catalyze the Trichomonas Rapid Testing Market") (AI)** One of the biggest [technology trends in 2016 has been artificial intelligence](https://www.financedigest.com/artificial-intelligence-ai-to-catalyze-the-blood-brain-barrier-technologies-market.html "Artificial Intelligence (AI) to catalyze the Blood Brain Barrier Technologies Market") in various forms. Google have announced using AI systems in 2016, particularly in order to return the most accurate and reasonable results for users’ search queries. This AI trend has no doubt spread to [Fintech companies](https://www.financedigest.com/7-cyber-threats-fintech-companies-should-watch-out-for.html "7 Cyber Threats FinTech Companies Should Watch Out For") too. AI in the Fintech [industry is not used in order](https://www.financedigest.com/german-industrial-orders-drop-in-sept-on-foreign-demand-slump.html "German industrial orders drop in Sept on foreign demand slump") to eradicate human intelligence, but rather to encourage us to make more informed decisions, more efficiently and faster. Barclays have even claimed that they think AI is the future of banking. Artificial intelligence can keep [costs down while enhancing customer experience](https://www.financedigest.com/how-omnichannel-identity-servers-help-enterprises-enhance-customer-experience-unlock-cost-savings-and-accelerate-time-to-market.html "How omnichannel identity servers help enterprises enhance customer experience, unlock cost savings and accelerate time to market"). AI comes in the shape of robo-advisors or automated online investment platforms in the financial [industry](https://www.financedigest.com/global-crises-that-need-the-finance-industry.html "Global Crises That Need The Finance Industry"). Leading banks, like [Deutsche Bank](https://www.financedigest.com/deutsche-banks-rollercoaster-ride-towards-more-stability.html "Deutsche Bank’s rollercoaster ride towards more stability") for example, have already launched their robo-advisor services. **Wearables** Consumer demand for wearable technology is not slowing down in 2016. This is why it is more important now than ever for the [banking industry](https://www.financedigest.com/enabling-decision-making-success-in-the-banking-industry-3-considerations.html "Enabling decision-making success in the banking industry – 3 considerations") to expand their strategy in order to keep up. According to PRWeb, 82% of financial professionals have confidence that smartwatches will facilitate financial transactions in the future. What really interests the financial industry in embracing wearables is proximity payment and greater [fraud protection](https://www.financedigest.com/fraud-protection-why-customer-onboarding-requires-digital-identity-processing.html "Fraud Protection: Why Customer Onboarding Requires Digital Identity Processing"). [Recent studies](https://www.financedigest.com/silicon-capacitors-market-to-garner-us-3100-million-by-2027-at-8-cagr-recent-study-by-tmr.html "Silicon Capacitors Market to Garner US$ 3,100 million by 2027 at 8% CAGR – Recent study by TMR") have shown that 15% of banks already have or are in the process of rolling out wearable apps for their customers. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---