It wouldn’t be wrong to say that digitization faced immense momentum during the year of the pandemic, especially in the fintech industry.
Given that rapid rate of growth, fintech advances will lead us into an unpredictable future, according to many financial infrastructure leaders.
What can we expect from fintech companies in the coming years? We can never know for sure. However, here is information from some of the leading fintech experts on the future of fintech and the trends that will continue to grow in the near future.
Prediction n. # 1: Digital banks and neobanks will face more hurdles and challenges as BigTech and financial services emerge.
Rich Silverman, founder and president of RTS Strategic Communications, predicted that “digital banking will be redefined in the coming years and will face significant changes. Notably, several neobanks were closed during 2020. This drop makes it obvious that people prefer traditional banking to digital platforms, which affects the reputation of digital banking in different ways. “
Therefore, digital banking service providers must improve the security features and all those mandatory requirements for the development of transparency between clients and companies. At the same time, numerous platforms were developed based on the unique financial services challenges of specific groups, including Greenwood, Paybby, Tenth. Companies like these understand their own financial requirements and why these groups tend to move away from traditional banks. It would be interesting to see how these companies will emerge in 2021 and beyond and how these business plans resonate with their specific prospects.
Prediction n. 2: more and more people will trust Bitcoin
Digital assets like the cryptocurrency Bitcoin and Ethereum faced immense growth, especially during the year of the pandemic. The main factor that people are prone to is trust and reliability. More conservative investors like JP Morgan predicted that they see potential in the emergence of digital currencies. Trust is the only thing that has value specifically in financial infrastructures. Central banks have been corroding over time from trust alone, culminating in the aftermath of the coronavirus. Furthermore, excessive leverage has played a crucial role in that correlation.
The founder and CEO of the Dadiani union, Eleesa Dadiani, stated that:
“The recent advent of Bitcoin is testament to trust transitions and this surge will continue to grow at the speed of light in the near future. From state-backed money to state-agnostic assets, be it gold or Bitcoin, trust is the key. “
Prediction # 3: The number of fintech unicorns will continue to grow, but analysts believe the chart will face a dip.
Tipalti CMO Rob Israch commented that:
“With five companies receiving unicorn status during the first week of the year, 2021 will be the year that companies will step up to invest a considerable amount in improvements. Businesses crawl in search of the latest innovative ways to continue to prosper and advance. When we take an in-depth look at market unicorns, we realize the fact that by focusing on product-to-market fit, companies have reached the top of the chart. They have a unique growth strategy and fundraising plans like crowdfunding, bootstrapping, and venture capital financing. The industries that evolved the most in 2020 were fintech and e-commerce and the main reason for their exposure was their integration with the latest artificial intelligence algorithms. These innovations will continue to meet customer demands and achieve unicorn status through the brand in 2021. “
Prediction n. # 4: bring advertising cloud-based payment infrastructures into the mainstream
Cloud-based platforms are becoming a new normal considering the rapid growth in the number of hackers in parallel with technological advancements. Considering this emergence in cloud computing, it is mandatory to protect such platforms in a much more efficient and meaningful way.
Mastercard’s Senior Vice President of Global Acceptance Solutions, Nili Klenoff, stated that “We describe the first deployment of the MasterCard credit card or cloud connection on mobile devices from anywhere in the world. We have moved our “Tap on Phone” product to the cloud. This will allow partners to develop their own touch phone solutions with many more enhancements than before. Any business can provide the best customer experience by using their smartphone. “
Prediction # 5: Commercial banking is prone to digitization and revolutionizes the way companies develop a relationship with digital banking.
Matt Cox, SMB and Commercial Banking Consulting Leader at EY Americas, stated that “clients have become more comfortable with subscription models that make it efficient and easy to perform CRUD operations (create, read, update and delete) in functions. Commercial and corporate banking customers always yearn for the ability to add and remove products more accurately and efficiently. Banks must take efficient plug-and-play approaches to attract future customer attention to create value-driven relationships. “
Future surprises await you!
Since we are currently grappling with predictions, the future is full of surprises. Exciting but unpredictable. As the author of the scientific feature Karl Shroeder describes it,
“Forecasting is not about predicting the future, it is about minimizing surprise.”
This quote is of great relevance considering future fintech predictions. The aforementioned industry leader insights and predictions lead us to the fact that financial technology is one of the most evolved industries in this modern age of technological advancement, and will evolve with the speed of light in the near future. Technology advances rapidly, ensuring customer confidence and reliability by providing them with enhanced security features accurately and efficiently. This continuous evolution in the fintech industry is fraught with uncertainty and in the coming years, the fintech industry will emerge as a captivating and trustworthy sector.
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