Categories: Technology

What Does The Future Of Fintech Look Like?

Over the past year, the fintech sector has grown dramatically due to the increasing demand for technology. Society has become much more digitally active and is requiring products that suit their lifestyle. While many fintech organizations have risen to the occasion, there is still a lot more to come from this sector. Below, we look at what we think the future of fintech looks like, in a post-2021 world. Read on to hear our thoughts.

Increased Jobs

According to the experts, fintech is now embedded across the UK and there is an increasing potential for new roles. These roles would be tech-based and could become part of an engine of the “levelling up” agenda. The roles created as a result of fintech growth and expansion will be deemed high-income jobs and will be extremely attractive to those hoping to upskill. This is something that the UK government has been calling for more recently. We have already seen an element of this over recent years so this is something to look out for.

Tighter Regulations

The FCA has been clamping down on digital banks over recent months so it may come as no surprise that tighter regulations could be on the cards. Banks and fintech organizations must be willing to comply with the regulations if they want to last. We believe that more fintech organizations will start to look into compliance solution options and outsource their audits to ensure they are staying on track. This would be the sensible route to take to avoid action or investigations from the FCA.

Contactless Payments

Contactless payments are hardly a new concept but over the past year, they have become a priority for many. This came as social distancing was enforced and retailers needed to find new ways to accept payments from their customers. According to the experts, contactless payment is set to be the new payment model. Many are predicting that banks and other financial institutions will be improving instant payments, alongside self-checkout facilities. This is likely to be welcomed by customers who have been calling for improved services. Additionally, an increasing number of stores are expected to discontinue cash payments in the long term.

Cryptocurrency Acceptance

Going forward, we expect cryptocurrencies to become much more widely accepted. This is something that has been many years in the making but more recently, banks are taking steps closer to a new way of thinking. It is expected that Europe will become much more open to accepting crypto coins over the next few years – something that will be welcomed by crypto and blockchain fans around the world.

Big Partnerships

As the fintech sector starts to expand over the coming years, it has been predicted that more banks will take note of these companies and create new partnerships. Asset management companies, insurance companies, and banks are all set to invest in fintech and ensure that they are set up for the future. By improving these partnerships, digitization will be much easier and this will work in everyone’s favour going forward.

Final Thoughts

As we move into the final quarter of 2021, it is time to start paying closer attention to fintech organizations and their impact on the world. This sector is set to grow more as external bodies such as banks and insurance companies are set to get involved. Keep an eye on the largest fintech companies to see the moves that they make going forward. With more jobs, tighter regulations, and easier payments on the card, this sector is looking very promising.

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