Opportunities continue to emerge in the financial sector. Leading the way are innovations in computer processes combined with cost-effective data storage. The most significant for fintech are analytical techniques and service applications. Both, digital banking and robo-advisers, offers a wealth of opportunities. While blockchains are grabbing headlines, artificial intelligence is quietly advancing fintech in the background.


All areas of fintech are being impacted by technology. This includes improvements to operational efficiency, costs, and customizations. Both organizations and customers stand to benefit. Balanced policy-making will be important to maximize these opportunities. Modernization will also need to be strategic. Ultimately, it will be a good balance between innovation and regulations that determine how effective the fintech space becomes.

Risks Mitigation and Best Practices

Overwhelming opportunity also brings higher risks. Failing to identify, understand, and mitigate risks could be catastrophic for the modern financial system. Regulation, cybersecurity, partnerships, and a growing interconnected global community must all be accounted for. Regulators will impact the development of both the overall fintech space and the incentives for innovation. As cryptocurrencies increase their presence, they have brought risk to the forefront of government discourse. However, the financial sector needs to focus on overall risk management when implementing innovation.


An increasingly interconnected world makes new partnerships and cybersecurity a greater concern. Outsourcing and acquisitions are often needed to keep pace with innovation, but they also introduce new risks. Strategic partnerships are not perfect, and until they are fully integrated, the potential for hacking and other threats increases.

Cybersecurity remains one of the most demanding fields in the modern era. The past U.S. election demonstrates how influential it has become. Open sourceware and application programming interfaces (API) make trust an ever-increasing concern. Here again, an interconnected world comes to know a maturing digital age that is constantly innovating. Balancing risks with emerging opportunities will determine how well the financial sector develops.

Best practices in mitigation will become a large part of the answer. A world demanding customized products can also shock the system through volatile herding behavior. Simply put, a product that many compete for may not be best served by a system geared toward customization. Mitigating between streamlined exchanges and distribution in an interconnected fintech space would serve to curb superfluous innovation.