Top trends in the fintech space
TODAY, May 17, marks the annually observed World Telecommunications and Information Society Day (WTISD). Now in its 17th year, WTISD has helped to raise awareness of the possibilities that the use of the Internet and other information and communication technologies (ICTS) can bring to societies and economies, as well as ways to bridge the digital divide.
This year’s theme is ‘Empowering the least developed countries through information and communication technologies’.
So, we caught up with Lynk Chief Product Officer John-matthew Sinclair to learn about emerging trends in the fintech space which are furthering financial inclusion and growth for the Caribbean and which will lead to further empowerment.
Let’s take a look at some of these trends below:
• Payment innovation: The fintech industry is driving innovation in the payments space, with new payment methods, such as contactless payments, peer-to-peer payments, and mobile payments gaining traction.
• Digital wallets: Digital wallets have gained popularity in recent years as they offer a more convenient and secure way to make payments using their smartphone. This is because the regulators have been pushing for higher levels of financial inclusion, thus creating an easy path for the underserved markets to access financial instruments. The next big push for digital wallets will be local and international interoperability.
• Open banking: This refers to the practice of opening up bank data to third-party financial service providers. This allows fintechs to partner with banks to offer innovative banking services at scale, especially for the underserved and unbanked.
• Artificial intelligence (AI): AI has the potential to transform the fintech industry by automating complex tasks, detecting fraud, and providing personalised financial advice in very efficient ways.
• Cybersecurity: As financial transactions are increasingly conducted online, cybersecurity is a top concern for the industry.
• Cross-border transactions:
Remittances, as we know them today, will evolve into seamless and frictionless transactions. As EKYC and blockchain technologies plus other forms of digital ledgers take root and scale, bundling this technology together has the potential to revolutionise the way we provide secure and transparent transactions, reducing costs, and increasing efficiency. This will also require heavy regulatory oversight.
• Regtech: Regulatory technology, or Regtech, refers to the use of technology to help financial institutions comply with regulatory requirements. Regtech solutions can help firms reduce the risk of non-compliance and automate regulatory reporting.
• Cryptocurrencies: Cryptocurrencies, such as bitcoin and Ethereum, have captured a lot of attention in recent years. Whilst user cases are still being built, cryptocurrencies provide investment opps and easy digital transactions access.