It would not be wrong to say that digitization was exposed to an immense boost during the pandemic year, especially in the fintech industry.
With fintech advances soaring, many leading financial infrastructures believe that fintech advances will lead us into an unpredictable future.
What can we expect from fintech in the coming years? We can never know for sure. However, here you will find insights from some great fintech experts into the future of fintech and the trends that will continue to increase in the near future.
Forecast No. 1: Digital banks and neo-banks will face further obstacles and challenges with the advent of BigTech and financial services
Rich Silverman, founder and president of RTS Strategic Communications, predicted so “Digital banking will redefine itself in the coming years and face significant changes. Notably, several Neobanks were closed in 2020. This decline makes it clear that people prefer traditional banking to digital platforms, which affects the reputation of digital banking in different ways. “
Therefore, digital banking service providers should improve the security functions and all these mandatory requirements for the development of transparency between customers and companies. At the same time, numerous platforms were developed based on the particular challenges of certain groups in the financial services sector, including Greenwood, Paybby, Tenth. Firms like this understand their own financial needs 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 align with their intended prospects.
Prediction # 2: More and more people will trust Bitcoin
Digital assets such as cryptocurrency Bitcoin and ether There was immense growth, especially during the pandemic year. The main factor people tend to do is trust and reliability. More conservative investors like JP Morgan predicted potential for the emergence of digital currencies. Trust is the only thing that is of value, especially in financial infrastructures. Central banks have corroded over time only because of trust and culminated in the coronavirus. Excessive leverage also played a critical role in this correlation.
The founder and executive director of the Dadiani Syndicate, Eleesa Dadiani, claimed:
“The recent emergence of Bitcoin is evidence of trust transitions, and that emergence will continue to grow at the speed of light in the near future. From government backed money to government agnostic assets, be it gold or bitcoin, trust is key. ”
Prediction # 3: The number of fintech unicorns will continue to grow, but analysts believe the chart will see a decline
Rob Israch, CMO at Tipalti, commented:
“With five companies earning unicorn status in the first week of the year, 2021 will be the year companies would invest a large amount of money in improvement. Companies are looking for the latest innovative ways to continue to be successful. When we get a deep dive into the unicorns of the market, we acknowledge that by focusing on customizing the product market, companies have reached the peak of the graph. They have a unique growth strategy and fundraising plans like crowdfunding, bootstrapping, and VC funding. The most evolving industries in 2020 were fintech and e-commerce. The main reason for its notoriety was its integration with the latest artificial intelligence algorithms. These innovations will continue to meet customer demands and achieve unicorn status by 2021. “
Prediction # 4: Taking Cloud-Based Payment Infrastructures From Hype To Mainstream
Cloud-based platforms are becoming a new normal given the rapid increase in the number of hackers as technology advances. In view of this development in cloud computing, it is imperative to protect such platforms in a much more efficient and meaningful way.
The senior vice president of Global Acceptance Solutions at Mastercard, Nili Klenoff, explained this “We demonstrated the very first delivery of Credit Card or MasterCard Cloud Tap to mobile devices from anywhere in the world. We have moved our “Tap on Phone” product to the cloud. This allows partners to develop their own tap-on phone solutions that are far better than before. Every company can offer the best customer experience with their smartphone. “
Prediction # 5: Commercial banking is vulnerable to digitization and is revolutionizing the way companies relate to digital banking
Matt Cox, head of retail and SME banking advisory at EY Americas, claimed so “Customers have been more comfortable with subscription models that make it efficient, yet easy to perform CRUD (create, read, update, and delete) operations on features. Business and corporate customers always want the ability to add and remove products more accurately and efficiently. Banks need to adopt efficient “plug-and-play” approaches in order to attract customer attention and build value-oriented relationships in the future. “
Future surprises are waiting!
Since these are predictions right now, the future is full of surprises. Exciting yet unpredictable. As portrayed by science function author Karl Shroeder,
“Foresight is not about predicting the future, but about minimizing the surprise.”
This quote is highly relevant in light of future fintech predictions. The above insights and predictions from industry leaders lead us to the fact that fintech is one of the most evolving industries in this modern era of technological advancement, and will continue to evolve at the speed of light in the future to come. Technology is advancing rapidly and ensuring customer confidence and reliability by providing them with advanced security features precisely and efficiently. This continuous development in the fintech industry is full of uncertainties and in the coming years the fintech industry will develop into a fascinating and trustworthy sector.
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