Tribe Payments, a payment technology company, has revealed
that 67% of fintechs believe AI is the technology that will have the biggest
impact on the sector over the next five years.
This insight comes from their Fintech Five by Five report,
which provides unique insight into exactly how fintech is changing today, from
those closest to the technologies creating that change. The report is based on
a survey of 80 fintech executives and features contributions from leading
technology providers including Canonical, FintechOS, Microsoft, R3 and
TrueLayer.
The aim of the survey was to determine what fintech
professionals thought of the five different technologies that we saw as having
the biggest potential impact over the next five years. The emerging
technologies were: application programming interfaces (APIs), AI, blockchain,
low code and edge computing.
Emerging technology use today
90% of fintechs use
APIs and they are the most widely used emerging technology today, primarily
driven by the success of Open Banking.
70% of fintechs are already using AI despite it generally
being perceived as a future technology.
20% of fintechs are using blockchain technology,
demonstrating that it has moved beyond the hype and is now being implemented
more widely.
Low-code is being used by 16% of fintechs, as firms seek to
increase the pace of development and refocus developer time on high value
projects.
10% of fintechs are using edge computing, a surprisingly
high adoption rate given the technology is less hyped than the others.
Although AI may still be seen by many as a “future
technology” fintechs are implementing AI today. Blockchain is going to be used
more and more in smart contracts, and for privacy and confidentiality. APIs are
already a mainstream technology, driven mostly by regulation in financial
services. They will continue to be mainstream and will make the integration of
services simple. To make the most of low code, there will have to be an
attitude shift in how fintechs approach development and the report suggests
that Edge Computing is perhaps too technical to have cut through, but its
advantages will become better understood in time.
“Fintech may be seen by some as a revolution made possible
by technology, but it’s just as much a shift of attitude—an ongoing change
where openness to, and understanding of new technology is vital,” said Alex
Reddish, Chief Commercial Officer at Tribe Payments. “This report not only
offers insight into the technologies from those closest to them, it suggests
next steps for fintechs who don’t want to be left behind.”
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