Top Five Fintech Predictions for 2021
The top five fintech forecasts are set to redefine the financial market landscape in 2021
Since the spread of the Coronavirus around the world, digitalization has faced a huge boost, especially in the fintech sector and industry.
The rapid pace of the growing technical progress has contributed to the development and emergence of new products that meet the current needs of the financial sector.
This accelerated development will lead us towards an unpredictable future according to many leaders of the financial infrastructure.
What can we expect from the “Fintech” digital economy in the coming years?
We cannot know for sure.
So we used an article from the source that contains the opinions of some fintech experts who provide their opinions about the future of financial technology and the trends that will continue to grow in the near future.
- The first prediction: digital banks and central banks will face more obstacles and challenges, especially with the entry of major technology companies and their integration of financial services within what they provide
Rich Silverman, RTS Founder and Head of Strategic Communications predict:
- Digital banking will redefine itself in the coming years and will face major changes.
- We note, in a prominent way, how many new banks have closed during 2020.
- This collapse makes it clear that people prefer traditional banking services over digital platforms, thus affecting the reputation of digital banking.
Meaning that digital banking service providers must enhance security features and all mandatory requirements to develop transparency between customers and companies and listen to what users want.
It will be interesting to see how these companies will emerge in 2021 and beyond and how these business plans will resonate with their future prospects.
- Second prediction: Bitcoin will gain more confidence
Cryptocurrencies such as Bitcoin and Ethereum have experienced explosive growth, especially during the 2020 Coronavirus outbreak.
The main factor that makes people accept Bitcoin is its trust, reliability, and transparency.
JPMorgan analysts predict that more people will be turning to digital currencies.
Trust is the one thing that holds special value in financial infrastructure.
Central banks have been eroding over time only due to the factor of confidence, culminating in the outbreak of the Coronavirus.
"Elisa Dadiani", Founder and CEO of "Dadiani", said:
The recent emergence of Bitcoin is a testament to confidence in transformations and this emergence will continue to grow at the speed of light in the near future, with state-backed funds to neutral state assets, be it gold or bitcoin.Confidence is the key.
Prediction three: The number of the unicorn fintech company will continue to grow
About this prediction, Mr. Rob Asrash, Head of Marketing at Tipalti, commented by saying:
- With five companies attaining the status of a "unicorn" company (a unicorn company is a company whose capital exceeds $ 1 billion) during the first week of this year, 2021 will be the year in which these companies will increase.
- Companies will crawl in search of the latest innovative ways to keep thriving and moving forward.
- When we take a deep look at the "unicorn" companies in the market, we learn the fact that by focusing on the market fit of the product, the companies have reached their peak.
- They have a unique growth strategy and fundraising plans such as crowdfunding, seed funding, and venture capital.
- The most advanced industries in 2020 were financial technology and e-commerce and the main reason for their exposure was their integration with the latest AI algorithms.
- These innovations will continue to meet customer demands and will reach "unicorns" in 2021.
- Prediction 4: Evolution of Cloud-based Payment
Cloud-based platforms have become a natural occurrence given the rapid growth in the number of these companies in parallel with technological developments.
Given this emergence in cloud computing, it is imperative to protect such platforms in a more efficient and significant way.
Mr. Nelly Kleinov, Senior Vice President of Global Adoption Solutions at MasterCard, said:
- We filmed the first roll-out of a credit card with a cloud click to mobile devices from anywhere around the world.
- We've migrated our “Tap on Phone” product to the cloud.
- This will enable the partners to develop their mobile solutions with much more improvements than before.
- Any company can provide the best customer experience using their smartphone.
- Fifth prediction: traditional commercial banking services are more vulnerable to the digitization
Matt Cox, Director of Commercial Banking Advising and SMEs at EY Americas, told:
- Customers are becoming more comfortable with subscription models that make it easy to create, read, update, and delete features.
- Commercial and corporate banking customers have always yearned for the ability to add and remove products accurately and efficiently.
- Banks must acquire effective plug-and-play methods to capture the attention of future customers to create value-based relationships
- in conclusion:
Given that we are currently dealing with expectations and not facts, as the future is full of surprises, and these expectations aim to reduce surprises and take a head start on them, and according to Mr. "Karl Schroeder":
Forecasting is not about predicting the future, it is about minimizing the factor of surprise.