What is the Future of Fintech?

July 29, 2021
Makayla Santino

Dr. Anino Emuwa gives her thoughts on fintech investment and what that means for the future of the fintech industry. Dr. Emuwa is currently the Founder and Managing Director at Avandis Consulting, which is a financial advisory company in France. 

 In terms of global investment, the fintech industry has rebounded spectacularly this year with record-breaking funding in the second quarter at $30.8 billion. The remarkable growth follows a year where there had been over a 30 percent drop in investment. In 2019, the industry brought in $168 billion, but this figure dropped to only $105 billion in 2020, according to KPMG Global Insights. 

The drop in investment occurred due to global investment uncertainty surrounding the pandemic. However, the pandemic had also created increased demand for digital financial services amid lockdowns, leading to increased investment following the height of the pandemic. 

Looking forward, two of the largest components of the industry will continue to be payments and digital banking. However, technologies to keep an eye on will be those that improve the foundational architecture and create new innovations with blockchain, DeFi, and digital currencies. 

By the looks of it now, cryptocurrencies will soon become more mainstream through collaboration with investment banks such as JP Morgan and Morgan Stanley. As cryptocurrency companies continue along their paths of success it is likely that these investment banks will provide digital assets that are connected to cryptocurrencies.  

Another technology to watch will be artificial intelligence and machine learning. These technologies can be used to more efficiently comb extensive amounts of data and big data to effectively analyze the information. Additionally, Internet of Things (IoT) and Cloud advancements will continue.

As a lot of these new technologies are data-focused, cybersecurity will become a crucial field to protect the sensitive data of financial institutions and their customers. 

Fintech is a powerhouse in the finance industry and more and more traditional banks are coming to that realization. As a result, it is likely that there will be more partnerships between fintech companies and banks. Both parties have a lot to offer each other. While fintech companies encounter large customer acquisition costs, banks already have a large clientele. On the other hand, banks do not have the innovative technology of fintech firms, which is where a fintech partnership will come in handy. 

A potentially overlooked possibility for the sector is to service demographics that are typically underserviced by traditional banks. For example, programs that specifically focus on financial inclusion for women. The specific focus on certain groups within society may create trends in the sectors and result in much reward.




Emuwa, Anino. “Future of Fintech: Investment Trends, Dr Anino Emuwa.” Real Business, 29 July 2021, https://realbusiness.co.uk/future-of-fintech-investment-trends.

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