Fintech and Finance in the Future

In March this year (2023) the World Bank Group and the IMF released a mutual report which highlighted how Fintech is set to reshape finance in the future.

The report was primarily concerned with how and when policy makers and markets should “embrace fintech opportunities and implement policies that enable and encourage safe financial innovation and adoption”.

However, the report also highlights how the World Bank and the IMF view the future of finance (within the Fintech sphere) in relation to consumers and organizations around the world, and how this technology is likely to revolutionize purchases, transfers, lending, investment, and inclusion for all of those involved, if correctly implemented and adopted by organizations and governments.

While Fintech has been disrupting the financial industry for a few years, it is now also impacting other sectors, especially when linked to purchases, consumer protection, GDPR, and so on.

As the report states “access to basic financial services such as savings, insurance and credit translates into better firm productivity and growth for micro and small businesses” and that “technology can lower transaction costs by overcoming geographical access barriers; increasing the speed, security, and transparency of transactions; and allow for more tailored financial services that better serve consumers” so it is essential that organizations gain an understanding of Fintech and how these technologies can benefit their business.

Below you’ll find a snapshot of some of the sections of the report which are most relevant to organizations, and you can read the two-page summary here.

1. Fintech and digital payments

According to the report and the latest World Bank Findex data, “global financial account ownership grew to 76 percent from 51 percent between 2011 and 2021 and the share of adults making or receiving digital payments grew to 57 percent in 2021 from 35 percent in 2014.”

This increase highlights the need for organizations to guarantee secure consumer transactions and protect themselves, and their clients, from cybercrime.

Understanding how organizations (and individuals) can benefit from financial technologies will encourage growth and “help them thrive”.

2. Fintech and personalization

Consumers are increasingly demanding personalized financial products and other services that are tailored to their specific needs and preferences. Fintech companies are leveraging data analytics and artificial intelligence to offer personalized financial advice, investment recommendations, and other services.

The demand for personalization within financial transactions is increasingly spreading to other sectors where organizations will be expected to utilise financial technologies to offer individualized payment schedules for customers or adaptable commercial B2B payments for services or products.

For organizations looking to profit from this changing consumer behaviour, an understanding of fintech is vital to ensure compliance within regulatory landscapes and offer protection from cybercrime.

3. Fintech and cybersecurity

As financial transactions become increasingly digital, cybersecurity has become an even greater concern for consumers, businesses, and financial institutions.

Fintech companies and financial institutions are investing heavily in cybersecurity measures to protect against data breaches and other cyber threats.

However, organizations also have a duty to protect their clients’ and their clients’ data from cybercrime.

Understanding cybersecurity and how it affects an organization is vital as we move into an increasingly digital world, and will ensure organizations remain compliant.

Fintech and finance in the future will be characterized by continued innovation, increasing personalization, and a greater focus on security and regulatory compliance.

This will affect organizations by calling for increased understanding of technological advancements and evolving regulatory settings.

It is vital that organizations ensure their employees are kept up to date with fintech advances and our courses offer a great way to do this.

Find out more or book your place on our latest course here.