This year the fintech industry has shown a movement towards the practical implementation of technologies. Projects that were in development or were just actively discussed began to materialize in the form of solutions ready to scale.
One of such cases was the bulk payment solutions. Fast C2C transfers, which banks began testing in early 2019, showed high demand. Now C2B is on its way. At the banks’ stands, it was possible to test transfers from an individual to a legal entity via a QR code in offline and online scenarios.
In the future, they are expected to launch digital fintech solutions provides on fast B2B transfers. Transfers between legal entities will help a business to reduce transaction costs, optimize the development of complex payment cases and simplify the customer journey. The next case may be payments by the digital money transfer software, where one of the participants will be the conditioned.
Face instead of a plastic card
The unified biometric system is another project that has demonstrated new vectors of development. The regulator, banks and Rostelecom are actively involved in the development of the EBS. Banks are learning to make mobile biometrics acceptance points and integrate biometrics into transactional cases.
Several companies, including Ak Bars Bank, demonstrated payment for face biometrics at the forum. The biometric processor developed by the bank can be used in various scenarios: both for remote identification of customers and payment for goods at the checkout without a bank card, and for access to a building.
At the current stage, the market needs more successful pilots to test the technology, as well as the simple onboarding of biometric technologies into business processes. The more basic applied cases of biometrics application, the higher will be the level of motivation among the population to use it.
Smartphones are replacing payment terminals
At the forum, technology companies presented several cases when a smartphone is used as a terminal for accepting payments by bank cards. While this technology has obvious growth points – it is not available on all mobile devices and may not integrate with all accounting systems and additive services.
In the future, merchants will be able to use mobile phones not only for payments, but also to generate a QR code for subsequent payment in the peer to peer payment solution, as well as biometric payments. The solution can become popular among business categories for which mobility and cost savings are important.
Banks open to fintech
We are witnessing the emergence of the BaaS market (bank as a service). The demand for such services is generated by companies operating in the Internet economy. So far, questions remain open regarding the regulation of relations between the bank and consumers of the banking API, including the issues of providing access to the client base.
For example, Ak Bars Bank at the forum signed an agreement with the open-banking platform APIBank, through which fintechs will gain access to the bank’s payment infrastructure. This will allow the partners of the platform to create banking services for clients – to open accounts for users within their services, to ensure safe transactions, to issue branded cards and other services.
Mass installments require modern security conventions. This incorporates innovation like Secured Sockets Layer (SSL). It’s an encryption procedure that guarantees the information is mixed the subsequent it is submitted. It can’t be perused during preparing.
The quantity of bulk payment solutions
Traditionally, startups are active participants. The VISA booth demonstrated a startup that is transforming the shopping experience in the checkout area, including using biometrics, as well as a voice bot for automated customer calls. Among the residents of the fund, one can note a technological solution for managing operational credit risks and a platform for creating a digital bank office with the ability to manage work with clients via a remote channel.
The fintech start-up market has gone through several stages of its life cycle. Within the framework of these cycles, some of them “fired”, some have failed according to the law of the market, the rest have transformed and continue to scale. The startup founder’s portrait is changing. More and more often, among the founders, you can find a professional with rich corporate experience.
Banks are experimenting with delegating some of the functionality: control of front-office or middle-office processes is transferred to external partners. All these factors together contribute to the qualitative development of Russian fintech startups.