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01. 15. 2018

20 European fintech startups to watch in 2018 – W.UP Digital Banking Weekly

Invoice-financing, P2P payment and AI-supported investment platforms are on the top list of the hottest European fintechs to watch this year.

Fintech startups 2018

20 European fintech startups to watch

Who are the fintech startups in Europe worth banking on in the year ahead? The ones Silicon Republic considers worth watching in 2018 include Advanon, an online platform for invoice-financing SMEs, Capital.com, which runs a mobile trading app that uses AI to allow customers invest in financial instruments and Circle, a P2P payment platform with native euro support.

Europe is in the grip of a fintech revolution and 2018 is set to be a pivotal year, Silicon Republic said.

GAFA expansion: the new banks are here

Google, Amazon, Facebook and Apple (GAFA) do want to enter banking, but they don’t want to become banks, said Martin Moeller, digital transformation principal for banking & finance at Microsoft. He says GAFA firms target the revenue rich parts of the banking value chain while leaving the regulatory heavy parts with incumbent banks.

With this strategy the non-banking challengers like GAFA put up to 65% of banks’ revenues at risk as well 20% of ROE, according to McKinsey. Like Airbnb not owning a single property and Uber not owning a single car, “Google, Amazon, Facebook and Apple are set to become the largest banking providers without needing a cent worth of balance sheet,” Moeller said.

Top tech priorities for banks include AI, ML

Banks, industry analysts and tech firms expect five areas to be in focus this year, according to the American Banker.

These are the advancement of artificial intelligence and machine learning, APIs and open banking, cybersecurity and biometrics, and commercial banking innovation.

Is Digital Banking Henry Ford’s Faster Horse?

Banks face a danger of defining their business in terms of past practices souped up with fancy new technology like AI and machine learning. They could take a lesson from design thinking and ask what customers want, or need, not simply what is good for the bank, Forbes said.

Banks are possibly focused on their own issues – streamlining processes, reducing costs, and using data to pitch more products more accurately to consumers – creating a faster horse rather than developing something customers want, such as an automobile, Forbes said.

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