Competition from fintech in traditional finance continues to elevate the customer experience for many across the globe – including those historically excluded from accessing financial services.
By 2030, it is estimated that the global fintech industry will be worth in excess of $1.5 trillion, according to the Boston Consulting Group.
Despite a difficult 2022 for fintech and turbulence now being felt across banking services – fintech looks set to continue disrupting the way we approach finance in the coming years, according to Jeremy Baber, the CEO of Lanistar.
The foundations of fintech have always been to offer consumers and business owners smarter, secure and streamlined solutions when it comes to managing their finances. Harnessing technology has enabled customers to access financial services via mobile, without the need to visit a bank branch.
“As fintech drives towards the trillion-dollar milestone, it is a testament to the work and values, we as industry players, apply every day in our professional lives,” said Baber.
“As an industry, we continue to challenge the status quo of traditional finance and the continued backing we receive from our customers speaks volumes in terms of what we are trying to achieve. Fintech is not a flash-in-the-pan idea, instead, it is here to stay and continue offering users cutting-edge financial solutions.”
Financial inclusion, the unbanked
From a financial inclusion perspective, there remains a significant population of people across the globe who remain unbanked. Even in some parts of the EU today, unbanked rates remain around the 30% mark.
Baber continues: “Over the past decade, fintech has reduced the financial exclusion gap for many across the globe. Services such as mobile payments offer users the ability to make transactions without having to visit a physical bank branch. Fintech’s continued growth will mean that we can continue to offer those who are unbanked the financial services they require wherever and whenever they require.
“The competition from fintech towards traditional finance continues to elevate the customer experience for so many across the globe – including those historically excluded from accessing financial services. It’s refreshing to see fintech push boundaries and venture into the unknown on behalf of their customers,” continued Baber.
From the outset, 2022 was a difficult year for UK fintech. Investment fell compared to 2021. But alongside other markets, the UK maintained its ranking in terms of industry investment, with $12.5bn pouring in – second only to the US market.
Baber said: “Last year was a difficult and uncertain one for the industry across the board. The global economy took on a lot of uncertainty which was predominantly driven by soaring costs and inflation. Despite this, fintech has remained robust and we continue to see a growing appetite for investment. Whether it is within established hubs such as the UK and US or emerging markets in Brazil and South America – fintech continues to grow.”
Baber concluded: “Fintech continues to make finance more inclusive for so many who have historically struggled gaining access. The industry has been challenging the status quo of traditional finance for a while now. But the latest vote of confidence cements our beliefs that fintech is here to stay and will continue to drive inclusivity and innovation for so many across the globe.”