These are the trends experts say the future holds for Fintech – Op Ed
Fintech will continue to grow, but at what pace and what is yet to come?
By Amnon Goldrat, CEO, ParagonEX Dynamic
ParagonEX Dynamic, a prominent technology solutions provider in the “trading and investments” Fintech sector, held an informative webinar where many concerns from business owners for the future of the industry were addressed and many questions were answered by the company’s top experts from various fields such as Risk Management, Business Development among other key areas.
During the webinar, I answered what is in some circles considered to be one of the most important questions for the sector nowadays:
“Where do you see the Fintech industry going in the year to come?”
Here is an overview of how I see the development of the industry.
Over the past few years, we all have witnessed the fast-paced and constant growth of the Fintech industry, generating billions of dollars. After living for months under lockdown, the world economy now has to figure out how to come out of this unprecedented situation strong again. Industries were slowly but steadily moving towards digitizing their services, but due to the unforeseen circumstances, we are getting there faster than ever. Therefore, for the past few months, the fintechs (Fintech companies), instead of pausing their businesses, like many other companies, accelerated their growth even more.
According to the Global FinTech Adoption Index 2019 reports:
96% of global consumers are aware of at least one money transfer and payment FinTech service
93% of SME adopters prefer to find a technological solution where possible
89% of SME adopters are willing to share data with FinTech companies
It is now believed, that due to the occurred situation that has caused social distancing, those numbers have grown even higher.
What lessons did the Fintech learn in times of lockdown and social-distance?
- Fast adaptation to the new “normal”
Many companies went below, but many skyrocketed to success. As we all know, Fintech thrives on innovation, and that was the time for companies to show what they have up their sleeve. As it turned out, however, only big ideas were not enough. Now that every company in the field had one for its customers, fast development and implementation of SaaS (software as a service) were needed more than ever.
We witnessed how businesses were able to offer services to their clients in days, which, in a different situation may take months to develop.
The urge led to progressive decisions, time-efficient solutions, and big profits.
- Focus on the customer’s needs more than ever
To standout, Fintech businesses needed to adapt faster than before, and through innovations, to set the rules for the “new normal”. This could never happen if you didn’t know your customer (KYC). Companies now had to learn new strategies, flexibility, and to be versatile to comply with their clients. New products and services were needed in their portfolio.
- Benefits of home-offices
As always, Fintech has been ahead of the game when it comes to flexibility compared to other industries. This flexibility played a vital role during social distancing, determining which company will go down, and which one will stay at the playground. Working online from everywhere in the world turned out to be the best strategy and in the future, we may witness complete elimination of centralized offices.
These are just a few of the aspects that will stick and continue to grow from my point of view.
Fintech trends that the future holds
The most important trend for the fintechs is not so much of a trend, but an “evergreen”. And that is the quick adaptation to an ever-changing and ever-evolving trends. The companies need to adopt a constant service upgrade strategies.
What the ParagonEX Dynamic experts discussed with their audience at the webinar are the following trends that are yet to come:
- “One-stop-shop” platforms
Fintech businesses have to figure out how to integrate many Fintech services on one platform as time- and cost-efficient solutions, whether it’s a mobile or desktop app. Many companies are already going in that direction through collaboration or through offering their own version of that service (e.g. payment methods). This is a beneficial strategy to keep their existing customers and to gain new ones.
- Blockchain and Fintech
The early adopters of the trend “using Blockchain and Fintech hand in hand”, experts predict to benefit the most of what is soon to come. This duo continues to move financial services and transactions away from the traditional centralized base.
Together they can be used for reducing fraud, automated trading processes, Smart Contracts, Secure payment processing.
- Big Data and Fintech
Big data analytics, AI and machine learning are becoming an inseparable part of the Fintech industry. The big data analytics and automation can break down the incoming information into meaningful segments, which can help small and big size companies create better customer profiles, predict behaviors, track trends, implement risk management processes, and so much more.
Other trends worth mentioning are:
- API integration is going mainstream
- Cloud computing software
- Intelligent automation of processes
The Heads of the departments in the now veteran-in-the-Fintech-industry company ParagonEX Dynamic gave away their most important tip on which trend will bring the most profit to startups and those who are already in the field. And this trend is: Always listen to your customers!
Should you wish to discuss any of these aspects with me, feel free to reach out by clicking here.
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