HOW THE 2019 FINTECH CHANGES AFFECTS NEW ZEALAND
[block]0[/block]Fintech is one of the fastest-growing segments of New Zealand’s technology sector with an increase of 42% annually towards the end of 2018. What’s In Store For Kiwis With The Introduced 2019 Fintech Changes?
As per reports from CIO New Zealand, FintechNZ general manager James Brown says that old established markets like insurance and real estate need to be ready for disruption – the introduced changes will drive more competition and more transparency as NZ has done so in the life insurance sector.
Brown confirms that this is all happening right this year – new investment platforms like Sharesies and now Hatch will emerge.
Brown also states that the much-anticipated wearable technology will advance and its the early adopters will most likely be the younger generation. For example, Visa is looking at payment options via sunglasses.
“Regtech will help speed up the anti-money laundering and know your customer process which will lead to more partnering between the large incumbents and fintechs. Using machine learning and better technology will not only speed up the process but make it more secure thus reducing fraud,” says Brown.
Old traditional and established markets like estate agencies will become targets to new disruptive tech entrants.
Since buying and selling a property is a tedious and costly process and with new providers not having lots of branches, they can offer the same service, with an app that allows the seller, agent and potential buyer to be in contact to answer any questions. The app provides more information such as police statistics about an area, which can potentially save thousands of dollars for the users.
Intangible assets such as Uber and Airbnb, who don’t own taxis or hotels and yet deliver better service than the traditional taxi or hotel chains, will be more openly discussed and banks could consider lending against it. Intangible assets account for 87% of a companies’ value.
Brown also confirms that NZ will now move away from open banking and into open data with the chief executive of one of the big banks already announcing the likely impact to their bottom line. This is because ‘open banking’ is focused only on the financial services sector, but ‘open data’ is more focused on the end-user and their experiences.
“Customer experience will be pushed more into the limelight,” he adds further.
FinTech To Become Seamlessly Integrated With Customer Experience
Looking ahead into 2020 and beyond, fintech is heading towards enabling the seamless experience of transacting within the customer experience. Fintech will further expand to work in the background leveraging the desire for ease and quality of service from customers.
As of July 2019, FintechNZ backed the Financial Markets Authority (FMA) to publicize its annual corporate work plans which are expected to result in better insurtech customer service. The plan outlines priorities to improve behavioural standards across different financial services sectors, including governance, credible deterrence of misconduct, implementation of potential remit changes, investor and customer decision-making and promoting trust and confidence in capital markets.
Note: At the time of writing this article, there are no specific details and documentation available yet. If you want to discuss FinTech integration to your platform, talk to us.
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