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Samir 1

Fintech industry

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Hi Samir, thanks for the question.

Fintechs are extremely popular nowadays. Especially with the COVID-19 outbreak that has forced millions of people to shop online. I think that the fintech industry is by far the biggest threat to traditional banking. 

Given its great potential and heightened consumer demands, fintech has never attracted more attention than now, especially after the COVID-19 outbreak. Looking at numbers, investments in financial technology were estimated at $1 billion. Then years later we are talking about more than $127 billion in 2018 with projections of $310 billion in two years’ time.

In general, I believe that the best change that fintech has brought is related to stimulating the traditional institutions to change how they operate. You have examples of traditional payment companies that merged with emerging financial startups.

Of course, regulation is still a big issue. Certain countries are still very cautious as they don’t want to undermine the traditional industry. Hence, the need for proper regulations and security is bigger than ever. 

In the end, we are not talking about payments and money transfer only. Certain societies and countries that have deep financial problems e.g. Venezuela, see crypto startups for money transfers as much more than a currency. Remittance and money transfers save lives in these regions. 

The same applies to Africa. Today, there’s a high number of new fintech startups for money transfers. 

“Africa is rarely mentioned among the largest markets for cryptocurrency, but it may be set to steal a march over other markets,” said Rakesh Sharma, a business and technology journalist.

Simply, money transfers by the emerging fintech apps are now widely used around the globe. I believe that traditional financial institutions will have to adjust to the new environment and work together with the emerging fintech firms to lay a solid foundation for the future.


 

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