1. PSD2 (Payment Services Directive 2) & Open APIs (Application Programming Interfaces)
1. PSD2 & Open APIs
The introduction of the revised European legislation ‘PSD2’ will redefine the payments sector as incumbents face new and increased competition. On the flip side, merchants and consumers will benefit from reduced fees and charges.
The Top 10 Disruptive Technologies in Fintech: 2017, found that PSD2 will effectively lead to the creation of numerous third party start-ups which could undercut established players. However, an opportunity exists for co-operation between banks and start-ups; institutions may leverage their established brands in partnership with agile technology start-ups, to press first-mover advantage.
For more insights, download our free whitepaper: Top 3 Disruptive Fintech to Watch in 2017
Juniper believes Regtech is on the cusp of seeing significant adoption with cost savings and time efficiencies ultimately benefitting consumers too.
For players in the finance and insurance industries facing constant regulatory changes, Regtech will provide enhanced security. It will redefine how stakeholders approach the ever-more complex compliance, regulation and reporting aspects of business, vastly reducing time constraints and improving accuracy.
Chatbots, or automated (script or AI-based) programs, aim to converse with consumers in the same manner as traditional human to human interaction. These will provide significant cost savings, with Juniper forecasting that banking players will save around $4.4 billion annually by 2022.
Research author Lauren Foye explained: “Chatbots currently have low barriers to entry, and are seeing increased adoption across platforms including web-browsers and messaging applications. FIs and eCommerce players will benefit increasingly over the next few years as chatbots help consumer engagement.”
New Technologies – New disruption
The research found additional technologies with significant potential to disrupt, including robotics and automation, invisible payments and blockchain, are currently hindered by factors including lack of adoption and limited regulatory agreement. Juniper’s new research examines the potential for these technologies and how they can impact the market.
Juniper Research provides research and analytical services to the global hi-tech communications sector, providing consultancy, analyst reports and industry commentary.