Data mining, deapps and quantum computing to disrupt FinTech
Juniper Research highlights the most disruptive technologies for FinTech
Data mining, decentralised apps and quantum computing are set to be the most disruptive technologies in FinTech this year, according to Juniper Research.
The company has assessed these technologies as having the most impact on FinTech in the coming five years.
In data mining, Juniper says that companies need to be aware of increased scrutiny and new regulations that will impact on how organisations extract value from data.
Data is still an essential asset, but the introduction of GDPR means that companies now need to be aware of their regulatory obligations and to ensure compliance with these regulations. This creates an opportunity for companies that produce data protection solutions.
Even outside of GDPR, there is a growing concern among consumers about how companies treat data, which can be an opportunity for companies that are proactive about data protection and transparency.
"There is the opportunity for data collectors to build a more positive and open approach to consumer data, whilst being wary of betraying user trust. Such an approach, combining transparency and honesty, will be well received, so businesses should seek to prioritise this; those that do not will face considerable suspicion and, potentially, a customer backlash," the report noted.
The research also praises Microsoft, which announced plans to impose GDPR restrictions across all operations worldwide, not just for EU customers, and argues that this approach should see replication by other global businesses.
The coming year will see a significant expansion in the deployment of Decentralised Apps (Dapps). Utilising blockchain as their underlying technology, these will create an innovative open-source software ecosystem, both secure and easy to develop for.
Research author Lauren Foye explained: "Dapps will pool resources across numerous machines globally, harnessing the power of thousands of idle computers. The results are applications which do not belong to a sole entity; rather are community driven".
Whilst the requirement to use crypto-based tokens as payment could be seen as a barrier, the desire for a secure, recorded series of processes will drive adoption, with users willing to spend for the benefit and peace of mind.
Juniper believes 2018 will see quantum supremacy, defined as a quantum computer that can carry out tasks that are not possible or practical with a traditional computer. Implications include the rapid solving of complex algorithms, redefining areas such as FinTech, logistics, and research & development. Whilst mainstream use is unlikely until 2023 at the earliest, industry players should plan accordingly, to avoid falling behind rivals.