With Covid-19 raging globally and the economy in a state of uncertainty, you probably think 2021 is going to be a wash-out, a year of doom-and-gloom – well, you’d be wrong! Now, more than ever, individuals, families and businesses are turning to the digital world for solutions and the need for financial technologies is literally skyrocketing.
You don’t need to crack open a fortune cookie to predict that 2021 is going to be a good year for the following areas in fintech.
With lockdown and widespread pandemonium throughout 2020, more people than ever turned to online banking; managing their finances from the comfort of their sofas instead of popping to their local branch to transfer money or make payments.
2020 saw a sudden rise in app-based banking and advancements in Artificial Intelligence, Biometrics and Cybersecurity, enabling customers to manage their personal finances with just a few clicks on their smart phones – digital banking looks set to play and even greater role in 2021.
In October 2020 the Bahamas became the the world’s first country to issue a central bank digital currency (CBDC), and other major economies are likely to follow suit in 2021.
The Financier Worldwide reported a surge in investment in BitCoin and other digital currencies, predicting a rise in BitCoin related start-ups. Noting, that the most intriguing aspects of these new currencies is their ability to carry out cross-border and micro-transactions without the expense of having to utilise a standardised, expensive banking system – making them increasingly popular to both your average Joe, as well as corporate organisations.
It seems that digital currencies are here to stay, and the legitimacy of cryptocurrencies as an asset class will only grow further in 2021.
E-commerce is developing quicker than Amazon can deliver, and that’s saying something. In this ever changing world as we all adjust to social distancing, wearing face-masks and shouting at Alexa to order toilet roll instead of popping to the shops, we can expect an acceleration in e-commerce and e-commerce technologies throughout 2021 and beyond.
Contactless, smartphone based, payment options like QR Codes, Apple Pay and Google pay have been around for a while, yet, mobile wallet payments reportedly grew by 50 percent in 2020 (mainly thanks to the Corona Virus). Businesses are embracing omnichannel and contactless approaches in order to keep up with selling trends. Contactless products and services will continue to develop and evolve throughout 2021.
While the past few years have allowed many companies to dip their toe into AI, ML, intelligent automation, and other similar solutions, 2020 proved to be the year to dive in headfirst. The rapid digital transformation of our world saw an acceleration in AI. Forbes writer Daniel Newman, predicts that the coming year will be a big year for AI growth, and that many AI applications will take off, truly delivering insights, efficiencies, and cost savings for the digital marketplace.
Watch this space… or maybe you don’t need to – AI software will be monitoring it for you!
Banking and financial industries must take these simple actions in order to prepare for the end of the Brexit transition period on the 31st of December 2020.
For tailored guidance on further steps your business needs to take go to –