A new report spells out what analysts view as the three most disruptive technologies in financial technology, or fintech, this year and next.

According to international research firm Juniper, the three are:

  • PSD2 (Payment Services Directive 2) & Open APIs (Application Programming Interfaces)
  • Regtech
  • Chatbots

Here’s a look at each of the three:

1. PSD2 & Open APIs

“The introduction of the revised European legislation ‘PSD2’ will redefine the payments sector as incumbents face new and increased competition. On the flip side, merchants and consumers will benefit from reduced fees and charges,” Juniper says..

“PSD2 will effectively lead to the creation of numerous third party start-ups which could undercut established players,” the report adds. “However, an opportunity exists for co-operation between banks and start-ups; institutions may leverage their established brands in partnership with agile technology start-ups, to press first-mover advantage.”

2. Regtech

Juniper analysts believe “regtech is on the cusp of seeing significant adoption with cost savings and time efficiencies ultimately benefitting consumers too.”

Explains Juniper: “For players in the finance and insurance industries facing constant regulatory changes, regtech will provide enhanced security. It will redefine how stakeholders approach the ever-more complex compliance, regulation and reporting aspects of business, vastly reducing time constraints and improving accuracy.”

3. Chatbots

Will chatbots replaces humans in customer interaction?

“Chatbots, or automated (script or AI-based) programs, aim to converse with consumers in the same manner as traditional human to human interaction. These will provide significant cost savings, with Juniper forecasting that banking players will save around $4.4 billion annually by 2022,” Juniper says.

Lauren Foye of Juniper adds: “Chatbots currently have low barriers to entry, and are seeing increased adoption across platforms including web-browsers and messaging applications. FIs and eCommerce players will benefit increasingly over the next few years as chatbots help consumer engagement.”

Other threats

These aren’t the only three.

Other disruptive threats include:robotics and automation, invisible payments and blockchain.

Read more about the “The Top 10 Disruptive Technologies in Fintech: 2017” at Juniper’s website.