There’s no doubt that fintech has exploded in popularity since the beginning of the pandemic, as opposed to most other major sectors. The demand for contactless transactions and the increased digitalisation of our world has given many global fintech startups the opportunity to approach consumers’ problems in their own unique ways. With this in mind, global experts have given their two cents on how they believe fintech will continue to evolve as we slowly transition out of lockdown and into a radically changed post pandemic world. One of the first and largest expectations for the new year is that fintechs will attempt to work together with other mutually beneficial companies globally, as we make our world more and more interconnected. The possibility for business partners will only expand as the industry does, as the world is now equally accessible for networking for those willing to educate themselves in different cultural work environments and customs.
Another expectation for fintechs will be to appeal to all consumers regardless of current economic status and offer specialized services. There’s no doubt that the pandemic has left the majority of the world in economic shambles, so a wide variety of services that cater to and aid those who need it most will be vital. A surprising but welcome expectation will also be the use and integration of eco-friendly resources in the ongoing fight against climate change. Most businesses, especially large multinational corporations, are known for having a disregard for the climate and will essentially do anything that is legal to reduce all costs. So the fact that fintech presents the unique opportunity to reduce adverse climate effects is exciting to say the least.
A major and unsurprising expectation in fintech for the rest of the year is the massively popular cryptocurrency market. Blockchain is a critical piece to the puzzle of security in the growing digital world, as it is tested and widely proven to be tamper-proof and has a distributed nature. The increased spending in cryptos will hopefully encourage more spending in local economies, which will help economies recover quicker. With this, more central banks are looking at the possibility of regularly circulating cryptos with their already established currencies, like the Federal Reserve in the US, the Bank of England, and the People’s Bank of China. China has actually already been circulating their crypto, the digital yuan, and have largely seen success. If there’s any lesson that should be taken from past fintech experiences, that trying to get ahead of the competition is ideal, but ensuring that you have a secure and reliable network for users is absolutely crucial.