Some ways financial tech has transformed how we operated this past year.December 06, 2017
The world of financial technology has truly changed the tech space in 2017, from Bitcoin to blockchain, to India's demonetization. How might this all develop in the coming year?
India saw a huge transformation in 2016 when the country moved to ban specific bank notes in an aim to hamper their black market. Jason Deign reported that a whopping 68% of the country's payments were cash-based. With this change, many found an answer in digital payments. From smartphone payment apps, to blockchain and virtual currency, money transfer could become much safer.
The blockchain also made waves this year, empowering innovations in cryptocurrency like Bitcoin and beyond. Blockchain enables each virtual currency transaction to have a public ledger of those transactions, which are cryptographically secured. TechRepublic predicts a massive disruption for blockchain in 2018, much of it in supply chain finance.
Other Fintech trends for the new year include more people borrowing money using data, and a rise in investment services automation. Entrepreneur India writes that all developments will depend on what the customer needs, and that consumer behavior will only change according to consumers' conveniences.
Cisco and Fintech
So where is Cisco among the changes in financial tech? In November, the company launched smart city financing with their City Infrastructure Financing Acceleration Program. This offers $1 billion in debt and equity capital financing to cities and urban service operators. This gives cities a way to become smart, deploying new technologies with minimal initial investment.
The company's 2016 "Roadmap to Digital Value in Retail Banking" also outlines how banks can digitize and compete amongst other Fintech startups. Cisco realizes that many banks are slow to move and could use new initiatives to jump on potential values.
Another big factor in retail banking's slow digitization is cybersecurity weakness—the "Cybersecurity as a Growth Advantage" found that from 1,014 senior finance and line-of-business executives, 71% thought cybersecurity risks hindered digital innovation. Cisco's roadmap to moving quickly towards digitization could help retail banks become secure, helping them jump on innovation.