Trends for the Future of the Fintech Industry – 2021 and Beyond

According to the Global Fintech Adoption Index 2019, fintech adoption was doubling every two years before the pandemic struck. From 2015 to 2019, the industry grew from 16% to 64%. This growth can be credited to fintech's developed agility compared to brick-and-mortar financial institutions. When the world was struck by the COVID-19 pandemic, fintech became an essential sector for businesses to survive the chaotic times. The true power of fintech enabled the rapid migration to digital payments at a time when even the skeptics had no choice but to embrace the new transaction solution. This digital transformation of the finance industry is expected to grow and continue in 2021. If 2020 was about the adoption of fintech, 2021 and beyond will be about innovation and survival.

During the onset of COVID-19, convenience became a priority for people to buy goods and services. Social distancing and quarantine made people inevitably embrace contactless fintech solutions. According to a survey conducted by the Nation Retail Federation in America, 19% of people made their first contactless payment in May, at a time when locals were hoarding hand sanitizers and grocery packages. In 2022 and beyond, this desire for convenience will continue with newer demands from the public, that is what fintech companies should be prepared for.

Another transformative application of fintech that will leverage this industry is bringing the "unbanked" closer to financial services. As per The World Bank Group's Global FIndex Database, approximately 1.7 billion adults lack a traditional banking account of any sort, be it from a financial institute or a mobile money provider. Now banks and government agencies can collaborate with fintech companies to help bring more people in the economy closer to a system by providing them access to new fintech solutions.

For all the right reasons, the world is discussing sustainability at all levels. With every industry trying to become more environmentally friendly, the finance industry can also become inclusive by innovating the fintech route. As more awareness is being spread about the environmental crisis, the majority of the people believe that their banks should actively contribute to help the environment and their credit and debit cards should be made of eco-friendly materials. For fintech companies, this is an important trend to keep in mind for any customer-facing projects.

From convenience, bringing "unbanked" people closer to the system, and sustainability, these trends come from the needs and concerns of the customers and the communities of health and hygiene. As an encouragement, fintech organizations across the world should use these trends to address some of the most pressing concerns of our time. Keeping the future in mind, innovation should accelerate towards satisfying the wants and unforeseen requirements of the people and society. No one expected the fintech boom to happen in 2020, but the pandemic was an unforeseeable crisis that made it happen. With the right strategy for the future, fintech organizations should lay a solid foundation for continued growth with futuristic features.