Priya Patel
TLDR:
– The fintech industry is thriving and preparing for the future with AI, embedded finance, and open banking, according to a report at the World Economic Forum in Davos.
– The report reveals that fintech companies are showing strong growth rates, exceeding 50% across various regions and industry verticals.
– Fintechs and regulators are working together, with 63% of surveyed fintechs believing that their regulatory environment is sufficient and suitable for their platform activities.
The global fintech industry is not only thriving but also embracing new technologies such as artificial intelligence (AI), embedded finance, and open banking, according to a report presented at the World Economic Forum in Davos. Bryan Zhang, who leads the Cambridge Centre for Alternative Finance, highlighted the strong growth rates of the fintech industry, exceeding 50% in various regions and verticals.
The report also revealed that fintech companies and regulators are working together, with 63% of surveyed fintechs believing that their regulatory environment is suitable for their platform activities. This collaboration shows that both the government and private companies are making efforts to bridge the gap between them.
Despite the industry’s resilience and strong performance, there are challenges. The pandemic has impacted the economy, resulting in a lack of financial resources for fintech companies. Drew Propson, Head of Technology and Innovation in Financial Services at the World Economic Forum, stressed the need for collecting information to understand the issues and garner support from both the government and private companies in the finance sector.
In addition, fintechs highlighted a lack of incentives or mechanisms to contribute to environmental and inclusion goals. About 41% of fintechs emphasized the need for sustainable finance schemes, while 31% deemed existing schemes ineffective.
Overall, the report showcases the thriving nature of the fintech industry and the readiness of companies to adopt new technologies. With AI, embedded finance, and open banking on the horizon, the industry is poised for further growth and innovation.
