Here’s where fintech is heading next

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(By Nikolai Kuznetsov, Forbes, 22/11/2016)

Thus far, growth in the Fintech sector has been exponential, but that has largely been the result of many years of under-development and a general absence of regulatory hurdles. That has left many other segments within the Fintech sector underdeveloped.  Those areas include insurance, wealth management and corporate finance, which require a “friendly” regulatory environment. As a result, those sectors have seen much less innovation, but that, of course, leaves plenty of growth potential.

What are the new frontier technologies that will push for the next hype in Fintech? Here are some of the more interesting ones:

Robo Advisors: Robo Advisors are online investment services that assess a user’s risk profile and match it with a diversified and low-cost investment portfolio. Algorithms keep managing the investments to optimize returns and taxes. The first wave of robo-advisors is selling model portfolios only, but the future looks much more personalized. Swanest calls itself an investment assistant and recently completed a round of $800,000 in seed funding. The startup uses robo-technology to redesign the brokerage experience. Interestingly, Swanest co-develops the solution together with its community of self-directed investors.

robo-advisors

Smart Contracts: Smart Contracts involves the use of Blockchain technology to validate, negotiate and enforce digital contracts from a distance. Those contracts could be for essentially anything, ranging from insurance policies and pensions to asset management and real estate contracts. In fact one of the most notable cooperation in the field of smart contracts started earlier this year between BNP Paribas, France’s largest bank and smart contract startup CommonAccord to standardize a protocol for smart contracts.

Colored Coins: Colored coins is a new technology that puts another layer of information on digital currencies and will allow to easily mint new types of digital currencies for different uses as well as transfer ownership of assets through an extra layer in the blockchain. In fact colored coins start-up Colu has already been able to digitally “mint” currencies such as the Camden Pound. And this may very well be only the beginning. According to Amos Meiri , CEO of Colu, “It’s a picture of an entirely new way of thinking about money,”

colored-coins

(link to the full article:http://www.forbes.com/sites/nikolaikuznetsov/2016/11/22/the-next-phase-in-fintech/#1bf6058c4a29)