The Global Fintech Adoption Index 2019 indicates that before the pandemic, fintech adoption doubled every two years. From 2015 to 2019, the industry increased from 16% to 64%. This expansion can attribute to fintech’s increased agility in comparison to traditional financial institutions. When the globe was strike by the COVID-19 pandemic, fintech became a critical industry for companies to escape the chaos.
If 2020 was the year of fintech acceptance, 2021 and beyond about innovation and survival.
Contactless payment is the new payment model
In the Covid-19 situation, where social distancing was one method of avoiding the virus, the banking and payment industries have prepared for Contactless Payments. The emphasis is on cashless payments. The sector is preparing to combine high-tech payment applications and systems to enable quick online payments rather than cash purchases. Many firms are actively seeking professional web developers to integrate digital payment systems into their operations.
Fintech enabled rapid adoption of digital payments that even critics had no choice but to embrace the new system. As the finance industry undergoes this digital transformation in 2021, it is forecasted to grow and continue.
Many people will be interested in embedded finance
Consider the big players, such as Amazon and Uber. These are trendsetters in their primary business, and the way they have employed integrated financial techniques to provide enjoyable experiences to their consumers is worth monitoring.
Companies currently provide integrated services ranging from payments to loans, insurance to mortgages, as if they can read their clients’ minds and provide them with exactly what they want.
Robotic Process Automation (RPA)
Robotic process automation will inevitably bring root and branch disruption to fintech as it does to so many other developing technological fields.
Whether it’s customer onboarding, data input or reporting, or even insurance claim checks or determining an individual’s fitness for a loan application, if it is repetitious activity, RPA will be stepping into the breach before long.
The global adoption of cryptocurrencies is another trend that expects to catch up this year. For example, the European Central Bank has moved one step closer to developing a digital Euro.
The Central Role of Cybersecurity
With widespread disruption and ever-increasing digitalisation – from machine learning and AI to 5G and IoT – cybersecurity risks have never been more prevalent.
As a result, the cybersecurity industry expects to increase from £118 billion in 2021 to more than £266 billion by 2028.