Technology
Fintech trends 2021-2023
Fintech trends 2021-2023
Published by Wanda Rich
Posted on December 14, 2021
Global Banking and Finance Review
Company
Published by Wanda Rich
Posted on December 14, 2021
Creation of a competitive and secure landscape of the digital financial market, acceleration of its high-tech development, as well as the transition to next-generation financial services based on new technologies. According to the research results of the international consulting company Accenture, such areas of fintech are considered to be the priority players of the financial market.
New trends are supplanting the current models of conventional market members. In particular, in the struggle for the attention of customers, banks move outside the industry becoming ecosystem players. Some companies find their own way by focusing on individual solutions and becoming digital monsters. Others blur away from plain sight, become suppliers of fintech products offering various services to the players.
At the same time, operators of open platforms are developing as aggregators of financial products and services. Unlike ecosystem players, they provide partners with access to the platform without distributing their own products.
Main directions
According to the results of the research, three macro-scenarios are identified in the current situation.
Based on the results of the survey, a list of priority areas for the development of financial technologies was also formed.
The three main segments of respondents whose opinions and priorities reflect the research results are banks, insurance companies, and other fintech. It is clear that fintech needs access to big data, which, as a rule, neither new companies, nor the bulk of banks, nor insurers possess. Telecom operators, Internet holdings, retailers, and very large banks have a lot of data. And the State. They are hastily expanding in all directions – operators are promoting their banks, the largest banks have opened MVNOs and are gaining an Internet audience, social networks are developing payment systems, etc.
Not surprisingly, the priority is given to access to data for everyone – that is, to take data from those who have it now and give access to those who do not. At the same time, we must not forget about the containment of ecosystems – consolidation in the hands of the largest players can be dangerous.
Hidden threat
Perhaps fintech can now provide a colossal volume of services, the side effects of which have not yet been studied. It’s not even about ensuring information security, but about the transformation of society under the influence of fintech tools. Without a smartphone, we are now helpless, and there are our wallets and smart assistants who are just waiting for the moment to start buying instead of us.
Katie O’Neill, in her book, Big Data Killer, writes extensively about the discrimination that arises from machine learning. It is worth being born in a disadvantaged area, living on a stairwell with people with a difficult fate, and going to an unimportant school, and the algorithm will draw, using the impersonal data that we have gained access to, an average portrait of the person whom this data describes. And it will not take long to convince that on average it will be an unimportant borrower. Especially if he likes friends on social networks who use bleak vocabulary when describing loan payments. Accordingly, a person turns out to be in some way a payer of debts for his environment.
Therefore, the authorities and society are holding back fintech, otherwise, it would transform us faster than we are ready for it.
Conclusion
Many of the priorities outlined above contribute to stabilization and more predictable market development by coordinating efforts to apply new technologies across the entire market perimeter. This, in turn, will reduce the costs and risks of market participants through the common infrastructure, as well as create new growth points and conditions for the development of the fintech ecosystem in the world. Otherwise, the market will depend more on the genius of visionaries who lead the largest ecosystems, and not on us.
This is a Sponsored Feature.
Creation of a competitive and secure landscape of the digital financial market, acceleration of its high-tech development, as well as the transition to next-generation financial services based on new technologies. According to the research results of the international consulting company Accenture, such areas of fintech are considered to be the priority players of the financial market.
New trends are supplanting the current models of conventional market members. In particular, in the struggle for the attention of customers, banks move outside the industry becoming ecosystem players. Some companies find their own way by focusing on individual solutions and becoming digital monsters. Others blur away from plain sight, become suppliers of fintech products offering various services to the players.
At the same time, operators of open platforms are developing as aggregators of financial products and services. Unlike ecosystem players, they provide partners with access to the platform without distributing their own products.
Main directions
According to the results of the research, three macro-scenarios are identified in the current situation.
Based on the results of the survey, a list of priority areas for the development of financial technologies was also formed.
The three main segments of respondents whose opinions and priorities reflect the research results are banks, insurance companies, and other fintech. It is clear that fintech needs access to big data, which, as a rule, neither new companies, nor the bulk of banks, nor insurers possess. Telecom operators, Internet holdings, retailers, and very large banks have a lot of data. And the State. They are hastily expanding in all directions – operators are promoting their banks, the largest banks have opened MVNOs and are gaining an Internet audience, social networks are developing payment systems, etc.
Not surprisingly, the priority is given to access to data for everyone – that is, to take data from those who have it now and give access to those who do not. At the same time, we must not forget about the containment of ecosystems – consolidation in the hands of the largest players can be dangerous.
Hidden threat
Perhaps fintech can now provide a colossal volume of services, the side effects of which have not yet been studied. It’s not even about ensuring information security, but about the transformation of society under the influence of fintech tools. Without a smartphone, we are now helpless, and there are our wallets and smart assistants who are just waiting for the moment to start buying instead of us.
Katie O’Neill, in her book, Big Data Killer, writes extensively about the discrimination that arises from machine learning. It is worth being born in a disadvantaged area, living on a stairwell with people with a difficult fate, and going to an unimportant school, and the algorithm will draw, using the impersonal data that we have gained access to, an average portrait of the person whom this data describes. And it will not take long to convince that on average it will be an unimportant borrower. Especially if he likes friends on social networks who use bleak vocabulary when describing loan payments. Accordingly, a person turns out to be in some way a payer of debts for his environment.
Therefore, the authorities and society are holding back fintech, otherwise, it would transform us faster than we are ready for it.
Conclusion
Many of the priorities outlined above contribute to stabilization and more predictable market development by coordinating efforts to apply new technologies across the entire market perimeter. This, in turn, will reduce the costs and risks of market participants through the common infrastructure, as well as create new growth points and conditions for the development of the fintech ecosystem in the world. Otherwise, the market will depend more on the genius of visionaries who lead the largest ecosystems, and not on us.
This is a Sponsored Feature.
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