2017 has seen a growing trend of established financial institutions looking to launch their own fintech or digital bank. These spin offs combine the best of two worlds, the resources and experience of an incumbent with the technology and culture of a fintech.

By operating independently these spin offs are able deliver significant results in a short period of time, free of the legacy technology and thinking which often anchors their parent organisations.

2018 will see new entrants leverage lean and agile technologies using cloud services that are empowered by regulators and fuelled by strong funding. They will leverage API-enabled ecosystems to access best in class technologies and provide a unique digital customer experience to take on new entrants.

I expect to see a trend in fintechs seeking out new technology for their evolving ecosystem as part of their transformation strategy and long-term planning. This is an opportunity for them to capitalise on momentum, focus on customer experience while leveraging best of breed technology to deliver seamlessly.

The growing move away from monoliths towards API-enabled ecosystems will continue to grow in 2018. These help institutions to attain speed, both in execution and time to market as well as business agility, to be relative and competitive in a changing market.

The pace of services they can connect to, from credit scoring to payments and the adoption of new services will fundamentally enhance their services and customer experience.

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New entrants are already leveraging this lean and agile technology to streamline operations, innovate, enable automated processes and reduce the overall cost of doing business.

Eugene Danilkis is CEO of Mambu.