The financial technology industry is booming, and traditional financial institutions are increasing their fintech investments and competing with start-ups to offer financial services products faster and more efficiently. There are several trends that are set out to take the fintech sector by a storm in the coming years. Let’s take a look at 5 of these fintech trends below.
5 Fintech Trends That Will Change the Landscape of the Financial Industry
1. Growing number of banks will offer embedded solutions
Embedded finance has been a growing trend over the past year and is well-positioned to grow even further as numerous banks look to become service providers to non-bank and non-financial institutions looking to deliver a customer experience or service proposition involving financial services as a component of a larger offering.
2. There will be increasing regulatory scrutiny of embedded finance offerings
The increase in financial products or services embedded within and delivered through non-regulated entities is expected to drive greater levels of regulatory awareness and intervention over the next 6 to 12 months as regulators look to protect customers by clarifying issues like accountability and available recourse.
3. Fintech companies will focus on branding themselves as data organizations
Many Fintech companies will likely reinvent themselves into data organizations and data providers that happen to provide payments and other financial services to differentiate their organizations in the eyes of investors and the market.
4. ESG-focused Fintech will have a big growth trajectory
Given the growing prioritization of ESG happening more broadly, there will likely be increasing interest in Fintech with ESG capabilities, including companies focused on climate change, decarbonization, and the circular economy.
5. There will be a stronger focus on deal-making in underdeveloped regions
Investors will ramp up their targeting of jurisdictions considered to be underdeveloped in terms of financial services — making more deals in regions like Africa, Southeast Asia, Latin America, and the Middle East.
Although there are jitters about Fintech being unreliable and unsafe, as markets and technology matures, we can expect the world of financial technology to continue to expand its presence and scope.
Curious about Fintech in MENA?
Read the rest of the blogs in this series by clicking on the links below:
- Key Fintech Initiatives Shaping the Sector in the UAE
- Fintech Innovation Attracting Speculation in 2022
DOWNLOAD OUR 2022 FINTECH REPORT
Enrich yourself with insights, key data and trends gathered from leading online sources and thought-leaders. Learn more about:
- Top Fintech Investors & Key Regional Accelerators
- 15 Standout Fintech Companies in MENA
- Crypto in MENA Spotlight
- Fintech across the UAE
And much more. Download our report by filling the form below.