Before the events of 2020, the Fintech market showed good growth results annually. Interest in financial technologies was also growing, but innovation was quite slow. After the global lockdown of 2020, most enterprises found themselves in a different reality, and digitalization of activities was no longer only an idea. In this area, Fintech managed to quickly adapt to the new reality.
According to the analysis of Fintech data, transactions grew both in volume and in quantities of 11 and 13%, respectively. Digital financial services have gained a proper advantage, and the flow of Fintech customers has increased significantly by the end of 2020. Lockdown due to Coronavirus has led to an increase in the use of financial applications in Europe (72% per week).
Fintech Opportunities in the Post-Pandemic World
The pandemic has made a number of changes to business and the fintech industry, in particular. The business sector is forced to adapt to the new reality caused by the Covid-19 pandemic.
This disease of the global level marked the beginning of the sustainable development of the fintech industry and the emergence of new opportunities. The main ones need to be considered.
Innovative Business Systems
Companies that have mastered new systems of management and customer service will lead in the future. Digital platforms, cashless payments and mobile trade have led to an active growth in various payment services.
New solutions are more responsive to customer needs. The main segments of the fintech industry, growing faster than others, are blockchain and regtech. In Europe, blockchain spending increased by 60%. Blockchain technology is the modernization of all business systems.
Increase the number of digital payments
The pandemic was the impetus for the growth of digital payments. So, according to experts, in 2021 their cost will reach $6.7 million. In order to implement digitalization, many companies had to modernize the infrastructure to support digital payments and increase the level of cybersecurity.
Online purchases allow making digital payments the preferred way to calculate. Digital commerce is the largest segment of digital payments. Its cost can reach $4.1 million in 2021.
Innovative Financial Products
Most business areas thought about how to develop and implement innovative financial products. The pandemic has accelerated the use of modern means for doing business.
A lot of companies plan to introduce new products that meet today's demand. For example, KYC systems and products for remote verification of counterparties.
New Opportunities for Investment
The new reality caused by coronavirus forces investors to look for new ways to invest. Startups cease to be popular, giving way to the fintech industry.
The total investment in the fintech industry in 2020 reached $25.6 billion. Personal finance and Internet banking, mobile payments, credit systems, AI consulting will be in demand. New lines of business regulation Before the pandemic, the business environment used traditional ways to regulate business. However, time and situation lay down the rule. So, the most popular business regulators in 2020-2021 were AML and KYC systems.
The AML products of Fintech and the use of the KYC system are being actively implemented by a growing number of enterprises. These technologies prevent fraud and illegal use of funds. Accurate regulatory frameworks are needed to regulate virtual service providers.
The Covid-19 pandemic affected the fintech industry. However, it has quickly recovered, demonstrated its ability to develop in the face of total change and crisis. New economic conditions allow the development of new financial technologies.
Digitalization, remote work, growing demand for digital payments and transfers are the factors that determine the new opportunities for expanding the financial technology market. The fintech industry will be able to emerge from the crisis caused by coronavirus as the most promising business area.