2017: A year of firsts

2017: A year of firsts

2017. What a year it has been. On many fronts, it has been a fantastic year of firsts and non-stop travel. We launched our first market innovation report to lay out the opportunities for innovating for the older adults, a population that financial services startups and entrepreneurs largely ignore. We hosted our first fintech demo day where we convened entrepreneurs, thought leaders, venture capitalists, and consumers. I am particularly proud of the diversity of our founders, whom I believe represent the melting pot nature of the America that we live in today. On a personal level, I completed my first Half Marathon in September. I am honored to be selected as LinkedIn Top Voice for Economy and Finance this year, and named Number 2 on Top Female FinTech influencers by Onalytica.

To cap off an amazing year, I recently launched a new series called Parlez-vous Female in Tech to showcase amazing entrepreneurs who are working hard each day and every day to make a difference. I have the honor of having Ramya and Catherine from Pefin as my guests for the first post. Be on the lookout for more to come.

While there are plenty of recap and prediction articles during this “season of trends”, with one of my favorite ones being the brand new "Top 10 Retail Banking Trends and Predictions for 2018", there are few interesting themes in 2017 that I believe are worth noting.

Artificial intelligence

There is no doubt that artificial intelligence (AI) has become a sensation. Most startup pitch decks that I have come across this year have a sprinkle of “AI pixie dust” on them. Gartner identified AI (along with transparently immersive experiences and digital platforms) as the top three emerging technology mega-trends. Tech companies begin to switch their strategies from “Mobile First” to “AI First”. In the Google I/O 2017 keynote in May 2017, Google CEO Sundar Pichai described transitioning Google from “searching and organizing the world’s information” to “AI and machine learning”. On one hand, we feel giddy with excitement at the mention of AI, with its promise of rich user experience, convenience, and beyond (e.g. smart robots, connected homes). On the other hand, some people begin to fear the AI apocalypse. In the latest McKinsey report titled “Jobs lost, jobs gained: Workforce transitions in a time of automation”, it was noted that “while automation and AI will lift productivity and economic growth, millions of people worldwide may need to switch occupations or re-train for the new economy.”

Looking ahead, I remain hopeful with AI’s potential, particularly around financial planning and well-being of sandwiched generation and older adults. The combination of big data and machine learning can enable support for more complex use cases such as decumulation and financial planning for multiple households across generations. It will allow financial institutions to better anticipate their customers’ needs, be more responsive, and deliver a more comprehensive solution as we navigate the future of longevity and multi-stage life, where age is no longer a determinant of what life stage we should be at and what we should be doing. Such technology can also enable more advanced fraud detection mechanism. For older adults who are more susceptible to financial exploitation, this could prove beneficial.

Digital transformation

Technology has drastically reshaped the way we live our lives. The amount of time it takes for consumers to adopt new technology has greatly reduced. Corporations have slowly (finally) begun to understand that innovation on digital experience is key to enhancing customer experience and survival.

No market segment is immune from the effects of digitization. Take insurance companies for example. As cited by American Banker based on the Accenture Insurance Technology Vision 2017 Report, 95% of insurance executives think digital partners are critical, and 79% of them are under extreme pressure to innovate.

Sensing the changing landscape, some banks are starting to strengthen their bench with more technical leadership. Citibank, for instance, has recently hired three female executives in technology: Lisa Cochran (Head of Operations Digitization and Technology), Yasaman Hadjibashi (Head of Data), and Jayne Opperman (Head of Technology for the Asia-Pacific and Europe, Middle East and Africa regions).

This leads right to my next theme: Collaboration.

Collaboration

Collaboration is finally in the air this year between fintech startups and incumbent financial institutions. There is less “us versus them” sentiment when both parties realize that they need each other to thrive. In the Global FinTech Report released by PwC, “82% of incumbents stated that they expect to increase fintech partnerships in the next three to five years”. Incumbent financial institutions are learning to embrace the symbiotic relationship with fintech startups as a way for them to respond to market changes with more holistic best-of-breed solutions.

This is a welcoming trend especially for consumers. At the end of the day, technology is just a means to an end. Incumbents and startups need to think beyond creating a product and deliver value-add to solve a customer’s needs and pain points, and to help them make more informed decisions to improve their financial well-being. Changes and innovation brought by partnership might just be the silver bullet the financial institutions need to deliver a better and more personalized experience for the customers that is suited to their digital lifestyles. It is through innovation and thoughtfulness that we can re-invent ourselves for the customers of the future. 

Financial inclusion

“With opportunities come responsibilities”; that was part of Dan Schulman’s keynote at Money 20/20 in Las Vegas. Financial inclusion is becoming more front and center in fintech events this year. There are two billion people in the world without access to savings and credit; digital finance could bring about positive impact for this unbanked population. A report by McKinsey Global Institute concluded that “widespread adoption and use of digital finance could increase the GDPs of all emerging economies by $3.7 trillion by 2025, creating up to 95 million new jobs across all sectors of the economy”. 1.6 billion newly included individuals would have access to financial services, with more than half of them being women. These figures are simply too large to ignore. And this is a good opportunity for us to do well while doing good.

Looking ahead

So where do we go from here? How will technological advances in artificial intelligence transform our daily lives? Will Amazon and big tech continue to blur the lines between industries? Will 2018 mark the year traditional banks fight back for our trust? Will we finally be able to look beyond our backyard and bring diversity to our innovation economy?

As I often say, the future is not yet written. As an optimist, I would like to believe in our ability to write our own destiny. And ultimately, technology will enable and empower us to become better humans, better spouses, better friends, and better citizens of the world.

Whatever it is that 2018 will bring, let’s dare to dream.

“That's how we're gonna win. Not fighting what we hate, saving what we love” ~Star Wars, The Last Jedi

 

 

Great summary. Thank you. Indeed 2017 was a milestone year for AI . Not just big tech but several other. One that took my eye is Remark Holdings with its Kankan AI platform. I noticed Bank of China licensed the Kankan AI FinTech offering recently. AI will drive revolutionary changes in FinTech.

Craig Iskowitz

Leader in #Wealthtech Strategy | Helping #WealthManagement firms drive tech value | #DataStrategy | EzraGroupllc.com

6y

While it's true that some companies use "AI pixie dust" as a throwaway buzzword, I believe that AI is soon going to be part of almost every technology product and service, especially so in financial services. You were spot on that AI will help advisors *anticipate* client needs, but the benefits will multiple for younger life stages, since they will have more online data to crunch, on average. The best current uses combine AI/BD/ML to analyze terabytes of client data and create actionable intelligence for advisors.

Nitin Thukral

Digital | AI | Software | Strategy | Leadership

6y

Great summary of 2017, thanks for sharing... Bonus props for the quote at the end! 👍🏼

To view or add a comment, sign in

Insights from the community

Explore topics