SPECIAL REPORT > TECHNOLOGY AND INNOVATION The Top Fintech Trends Driving the Next Decade From digital lending and next-gen authentication to artificial intelligence and internet-enabled devices, these six trends will shape the future of financial technology. BY ROB MORGAN T 1 en years ago, when Steve Jobs unveiled the first iPhone, few predicted that it could become the primary platform by which customers interact with their banks. New technologies are rapidly changing the way customers consume all of their products and services, and banking is no different. Customers' expectations are being set by the experiences offered to them by tech companies. In a world where you can call a cab from your phone, customers expect their banking experience to be as intuitive. America's banks are innovating and partnering with startups to deliver the services that customers want. They are also looking forward to the next wave of technologies that could shape the future of the industry. Here is a glimpse at the technologies driving bank innovation today-as well as a look ahead to the technologies coming down the pipeline that will change the way banking is done over the next 10 years. 22 ABA BANKING JOURNAL | SEPTEMBER/OCTOBER 2017 LENDING 1.DIGITAL (HERE AND NOW) Digital lending is the technology that kickstarted the fintech movement and is still the most prominent example in the media. As consumers and businesses have moved more activities online, they have created an unprecedented amount of data. Online lenders have leveraged this data to make underwriting decisions, creating computer programs that can automate loan originations without the need for a customer to ever set foot in branch. These programs can use traditional underwriting criteria- such as debt to income or cash flow analysis-or less traditional metrics such as the number of visitors to a company's website. In practice, most platforms today use traditional underwriting criteria that would be familiar to banks across the country. It is the digitization of the process where these platforms add the most value-getting quicker and more consistent decisions for customers while taking less bank employee time to process. It also expands the ability of banks to lend outside of their physical footprints, allowing smaller banks to compete.