- 70% of fintechs are using AI today, and the technology is predicted to dominate the market by 2025
- 90% of fintechs use APIs and they are currently the most widely used emerging technology
- “Fintech Five by Five” explores five core technologies that will have the biggest impact on the sector in the next five years
13th July 2021, London – Tribe Payments, a payment technology company, today reveals that 67% of fintechs believe AI is the technology that will have the biggest impact on the sector over the next five years. The finding, part of the new “Fintech Five by Five” report, examines which five emerging technologies are having the biggest impact today, tomorrow and the long term future, and exactly what changes we can expect to see as a result. 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.
Key findings from the report:
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.
- Remarkably, 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 given the technology is less hyped than the others.
Impact of emerging technologies tomorrow and in the next five years
|Most impact in the next year||Most impact in next five years|
|1. APIs||1. AI|
|2. AI||2. Blockchain|
|3. Blockchain||3. APIs|
|4. Low-code||4. Edge computing|
|5. Edge computing||5. Low-code|
- AI may still be seen by many as a “future technology”, forever several years away, but fintechs are implementing AI today, and the reputation as all hype and no substance is no longer deserved.
- Blockchain will be used more and more in smart contracts, and for privacy and confidentiality. Its success doesn’t hinge on crypto.
- APIs are already a mainstream technology, driven mostly by regulation in financial services. They will continue to be mainstream and will make integration of services simple.
- Low-code is the dark horse of these technologies. To make the most of it, there will have to be an attitude shift in how fintechs approach development.
- Edge computing is still to gain the buzz that it should, perhaps as it’s a little bit “inside baseball”—the implications are mainly understood by those closest to the technology.
“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.”
The report “Fintech Five by Five”: Five technologies and their impact over the next five years can be downloaded here https://www.tribepayments.com/fintech-5×5-report-2021?hs_preview=fHfqJXyN-49935884725.
Notes to editor
Press kit with associated imagery can be found here https://drive.google.com/drive/folders/10PtAM4HEKxGLNIpA_IyHG-Uafpts47qY.
Tribe surveyed 80 fintech executives in the UK in April and May 2021.
Selected contributor quotes
Kris Sharma, Finance Sector Lead, Canonical: “Cloud has been the home of innovation for a decade. Edge computing should be part of the toolset, as fintechs evolve to use the best solutions to underpin what they are doing. Crucially for 2021, the fintechs that start thinking about this now will remain two steps ahead of incumbents, especially those who are only now getting to grips with cloud—and one step ahead of rivals who see the cloud as their final destination.”
Teodor Blidăruș, CEO and Co-Founder of FintechOS: “We see low code being adopted across financial services and beyond. Developers are irreplaceable, and low-code means they can tackle the challenges only they can solve. Low-code is undoubtedly the future of development within businesses, enabling them to keep pace with the market.”
Daragh Morrissey, Director of AI, Microsoft Worldwide Financial Services: “Fintechs have the potential to keep leading on AI. Some incumbents have admitted to being scared by the potential of fintechs. And they should be. Smaller companies have the advantage when it comes building sophisticated AI. Without legacy technology to deal with, fintechs simply don’t have to revolutionise how they work to start implementing AI.”
Richard G Brown, Chief Technology Officer, R3: “The convergence of blockchain and Confidential Computing is my tip for 2021’s most meaningful development in financial technology. It will be the table stakes for anyone processing other people’s data in a few years’ time, but those who master it in 2021 will enjoy an amazing period of competitive advantage as the only ones in their industry who can make data security promises to their customers that their competitors could only dream of.”
Marie Steinthaler, VP of Product, Data Products at TrueLayer: “2021 is seeing significant growth in the use of APIs, particularly when it comes to instant bank transfers, powered by open banking. This isn’t just apparent in fintech, as there is a shift to embedded finance driving change across many verticals, but fintech has a chance to lead and show how it can be successfully done.”
About Tribe Payments
Tribe Payments provides modular technology to banks, fintechs and acquirers, enabling them to offer innovative payments services without compromising on speed, scalability or quality.
Tribe’s core platform – ISAAC – supports issuer and acquirer processing and offers a range of API-led enhanced services including a proprietary 3D Secure solution, data insights fraud and risk monitoring. Tribe’s technology stack also includes its Digital Banking, Bank Connect and Open Banking solutions which give fintechs and payments companies fast, easy access to banking rails and financial services capabilities.
Tribe’s cloud-based services provide clients and partners with enhanced flexibility and rapid speed to market, along with the ability to scale, expand across borders, and work better in complex regulatory environments.
Launched in 2019, Tribe is a pioneering payment technology provider. Tribe was the first processor to allow service providers to harness the power of Open Banking without developing their own APIs. As Europe’s first issuer processor to work with Mastercard, Visa and UnionPay International, Tribe supports unrivalled connectivity for card payments. And with PCI Level 1 compliance and supported by Level 4 data centres, Tribe builds global scale, safely and securely.
Find out more: https://tribepayments.com
Nabila Mahmood/Ryan O’Leary