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Fintech Success Will Bring Better Stability and Security To Customers
The sheer number of meetup groups, accelerator programmes, conferences and job openings dedicated to a relatively new industry like fintech is phenomenal
Fintech also has a hype pattern like every other industry and it is perhaps going through the peak hype phase at the moment. The sheer number of meetup groups, accelerator programmes, conferences and job openings dedicated to a relatively new industry like fintech is phenomenal.
The number of startups being launched in cities like London and countries like India every week is huge. However, there is still room for investments into the sector to go dramatically higher and much higher investments are expected to be coming in from Asia, Africa, Latin America and the Middle East. These geographies will likely be the largest markets for fintech in 5 years’ time.
Future of Fintech
Fintech expert Devie Mohan believes, “Fintech will see a larger amount of collaboration in the future. There will be much more meaningful collaboration between banks and fintechs, fintechs and academia, as well as between the fintechs themselves. Most global banks have a very strong desire to work with fintechs and they will continue to work with fintechs based on specific use cases, solving specific challenges.”
Devie added, “Finally, the go-to-market and success strategies of a fintech startup will become more linked to the macro environment and the developments from regulatory bodies and governments. The industry will start seeing a much higher level of regulation and this could affect the amount of innovation seen today, while offering better stability and security to the consumers.”
Banks and Fintech start-ups
Devie Mohan who has been ranked as the 6th most influential voice in the FinTech industry shares her views on bank and fintech start-ups.
She shared, “Banks do what they do best and fintech startups do what they do best. I don’t think banks can ever become a fintech.”
There are 3 major areas where a bank can benefit by bringing in technology
- Offering a better service to customers, thus improving customer retention and engagement
- Creating and launching innovative and better offerings, thus bringing in a wider group of target customers
- Creating operational efficiencies within their existing infrastructural and IT environment.
Technology can play a strong role in making all of these objectives happen for banks. The only problem is that banks cannot, and should not, adopt a new technology for the sake of technology. The technology element should be invisible in whatever they create and launch.
Banks will continue to invest in fintech startups, or working closely with them to find new and interesting collaborative opportunities. Banks around the world had invested $ 5 billion in fintech startups by 2015. Just last year, this amount was $ 9.5 billion, indicating banks’ interest in the space is increasing exponentially every year.
Talking about women leaders gaining prominence, she added “A large majority of entrepreneurs in the fintech industry have come from the banking industry, having identified certain gaps in the industry and leaving to solve that gap. The gender or diversity representation in fintech is thus very similar to that of the banking industry. I am sure for both male and female entrepreneurs, fintech is one of the largest and strongest digital industries to play in today.”