RFS’ 5 key trends in fintech for 2019

What will drive the fintech landscape in 2019? We think the following five key trends might play a major role:

  1. Venture Capital (VC) funding will become more selective, driven by rising interest rates and higher market volatility. For example, the VC heavyweight Softbank withdrew its planned USD 16 bn. investment in coworking space operator WeWork.

  2. Incumbents will strike back or collaborate with fintechs. Examples are Goldman Sachs’ Marcus (US) or Neon’s collaboration with Hypothekarbank Lenzburg (Switzerland).

  3. Infrastructure fintechs gain in importance. By offering bank operating solutions related to the core banking system (CBS), they shift their value propositions away from B2C to B2B.

  4. BigTech emerges further as a threat to existing banking. Just this week, Google Pay received a license for e-money from Latvia, enabling the tech giant to enter Switzerland’s payment market.

  5. China’s fintechs gain further momentum: Already today, some of the world’s biggest fintechs such as Ant Financial are of Chinese origin.