According to research, Covid-19 has led to a 72% rise in the use of fintech apps in Europe, as the pandemic accelerates the trend towards digital. As we start 2021, we explore some of the key fintech trends to watch out for this year and beyond.
With social distancing likely to remain in place for a while, there is continuing need for this type of technology. We expect to see more mobile payment options become available, so ensuring that your business caters to emerging consumer preferences will be key for conversion. Bear in mind that payment preferences vary by market – a Local In-Market Expert will be able to advise on preferences and trends in your target markets.
With more time spent online, and with the rise of a cashless society, the number of potential threats which exploit the tech vulnerabilities of companies, users and their devices increase. Fintech deals with highly sensitive information and, given its integration with the Internet of Things, is a prime target for cyber criminals. Greater awareness of cyber threats will become a key theme for both brands and individuals. We can also expect to see the financial industry create new payment standards around the use of digital cash.
Although viewed by many as an outdated payment type, cheques remain popular within the B2B space, with about half of global B2B payments still made via cheque. This is changing though, especially as more businesses adopt a remote-first working environment. In the same way that B2C consumers have more options than ever for sending instant payments – Facebook Pay, Venmo, PayPal, Square Cash etc – we expect to see more payment innovation in the B2B space driven by fintech – led by players such as Paystand and Bill.com.
Since Apple introduced Siri to iPhone users in 2011, voice search has grown. Most of us already have a virtual assistant at home or in our workplace in the form of smartphones, speakers, smart gadgets and more. In 2019, the number of digital assistants around the world were estimated at 3.25 billion.
Over 50% of searches are made by voice – and in a banking and finance context, voice search is increasingly being used for tasks such as checking balances, payment due dates, initiating service requests, checking market conditions for investments, reviewing insurance policies and so on. This is part of a broader trend towards conversational banking – where customers interact with financial services through voice plus chatting with bots, and humans using text, instant messenger, social media, email and in-app chat systems.
Although digital wallets have existed for over 20 years now, it’s only within the last decade that they have rapidly evolved, revolutionising the way we pay for goods and services. Expect to see more fintech companies roll out their own distinct wallets or partner with digital wallet companies to facilitate seamless transactions.
The increase in remote or homeworking in the last year or so has highlighted process issues or limitations caused by a distributed workforce. Fintech applications that help to improve those processes – e.g. to help finance and accounting teams with payments, budgeting and accounting tools – will be in high demand.
Last year’s pandemic saw record numbers of people sign up for online investment accounts, as they sought to capitalise on the global market downturn. An influx of younger stock-trading customers, who don’t necessarily have much experience in the equity space, creates an opportunity for investment platforms which make it easy to trade stocks on an everyday basis – such as nutmeg, Moneyfarm and Wealthify –– to innovate and scale further.
Embedded finance is where companies provide banking or financial services even if financial services do not traditionally form part of their core offering. Essentially, it is the integration of a finance service into a non-finance app or website. Social networks like Facebook and aggregators like Uber will soon be offering most of the services that people use banks for today. This raises big questions for traditional finance providers as they decide how to react and adapt.
The growth of peer-to-peer technologies is driving opportunities and empowerment for customers all over the world. P2P financial services platforms give developing countries a path to participate in capital markets and upward social mobility. For example, in Latin America, 70% of the population is estimated to be without a traditional bank account. P2P lending helps to broaden financial inclusion and we expect continued innovation and business models in this space in the years ahead.
Related to the last point: Fintech has the power to ensure that large sectors of societies are not left out as the global economy continues to evolve. The Alliance for Financial Inclusion is an attempt to ensure that fintech does not leave out large sectors of societies as it moves ahead rapidly transforming the global economy. Mobile money and e-wallets, crowdfunding, alternative credit scoring, cross-border remittances and regtech all have the power to broaden financial inclusion throughout the world – which will be an increasingly hot topic.
And not forgetting…
Whatever 2021 has in store, if your goal is to expand or enhance your international digital marketing, then Oban can help. To find out how, please get in touch.
Sarah Jennings | CEO
Oban International is the digital marketing agency specialising in international expansion. Our LIME (Local In-Market Expert) Network provides up to date cultural input and insights from over 80 markets around the world, helping clients realise the best marketing opportunities and avoid the costliest mistakes.
