Is the fintech boom coming to an end?

Probably not. Though funding for financial technology developers declined 26 percent from the first quarter to the second quarter of 2016, a recent report from PricewaterhouseCoopers’ DeNovo platform finds plenty of room for growth in the industry.

“Funding is down year over year, too, but there are pockets of growth and an incredible amount of innovation going on,” says Aaron Schwartz, DeNovo head of research. “When we bifurcate fintech into subsectors or trends, we see some areas that are slowing down in the later stages in the investment spectrum, and other areas that are in the early stages that show very healthy growth.”

The largest opportunity for fintech developers is linking the financial services industry with the 2 billion global adults currently absent from the formal financial system.

According to PricewaterhouseCoopers, these underserved adults represent $360 billion in unmet banking and deposit demand and $20 billion in uncaptured insurance premiums in the U.S. alone. Services and tools for underserved consumers became the most funded fintech trend in the second quarter.

A significant portion of Americans underserved by the financial industry are young adults, says Schwartz.

Faced with an industry poorly positioned to serve them and imbued with a deep distrust of financial firms, millennials are looking elsewhere for financial advice. The report says that millennials are receiving investment information from blogs, online message boards and chats instead of from advisors. Furthermore, PricewaterhouseCoopers says that “crowdsourced” recommendations from sites like Seeking Alpha tend to outperform those from professional analysts and traditional investment news.

Robo-advisors might not be the wave of the future, says Schwartz.

“Robos have attracted a lot of money, but now the incumbents are stepping into the market,” Schwartz says. “We’re starting to see more activities around different types of enabling technology.”

Increased fee and management transparency is driving consumers away from the traditional wealth management industry and toward more fintech solutions, according to PricewaterhouseCoopers.

The next generation of consumer-oriented fintech tools could look quite different from today’s budgeting, personal finance and robo-advisor offerings. Schwartz said that the development of online investment clubs or communities could change the model of wealth management altogether.

“This is a movement beyond robos, a movement beyond advisors, towards the development of social and communal views around wealth management,” Schwartz says. “We’re moving away from the old one-on-one approach of a client and an advisor towards a social approach.”

Gamification is another area ripe for development — fintech developers are exploring ways to make investing competitive and more engaging, through something like a “fantasy sports league of investing,” for example, or contests where consumers attempt to build portfolios to outperform investors like Warren Buffett or George Soros.

The collision of finance, fintech and social media is creating possibilities for social trading, where groups or individual investors follow a successful portfolio manager based on their performance, investment style or personal relationship. These could be similar to strategies that attempt to mimic active mutual fund managers, except financial technology would allow investors to automate and accelerate the process.

“There’s such a distaste around larger institutions and banks; things like gamification and social wealth management help address some of those behavioral issues,” Schwartz says. “They’re useful for breaking through that engagement wall.”

The old model of financial advice, a personalized investment advisor, is falling out of favor in lieu of self-directed investing, social investing and hybrid digital/human solutions, says the report.

Robo-advisors were just the first wave of a sea change that could sweep the traditional advisor away. Advisors’ failure to adopt technology, with just 25 percent of advisors offering digital channels beyond e-mail, could be their undoing, said PricewaterhouseCoopers.

“Wealth management is a lagging area of fintech adoption,” Schwartz says. “Very small shifts in consumer behavior can add up, yet firms are only now starting to think of the potential wealth transfer to the younger generation and how to engage young consumers.”

Insurance technology — dubbed insurtech by PricewaterhouseCoopers — is another area for potential growth. Even as overall funding for financial technology declined, insurance technology funding grew by 12 percent in each of the last two quarters.

“The companies that are getting funded are looking at distribution to smaller organizations, or are looking around the 1099 space,” Schwartz says. “Insurance companies recognize that the sharing economy has created new opportunities for growth.”

Overall, financial services companies have two tracks towards growth, says the report: scaling up at lower price points, or increasing their value proposition through more sophisticated products and services.

The slow-down in funding relates more to the record levels of funding in 2015 than any significant downturn in financial technology development, Schwartz says

“Of the top deals in all of fintech, 61 percent of the dollar amount occurred in 2015,” Schwartz says.