The fintech industry has been growing rapidly and has become an imperative part of the financial services landscape. According to KPMG’s 2021 report, international investment in fintech companies reached a record high of $210 billion, despite the challenges presented by the COVID-19 pandemic. How did this happen?

Let us recall the key drivers that drive the fintech’s growth.

Increasing consumer demand for digital financial services and products

Compared to traditional offerings, these are more convenient, affordable, and accessible.

Regulatory support for innovation and competition in financial services

These include initiatives such as open banking and sandbox programs.

Partnerships between fintech companies and established financial institutions

These partnerships bring new products and services to market more quickly.

Advancements in technology

These include AI, blockchain and cloud computing, which allows fintech companies to offer new and innovative solutions to consumers.

Challenges and New Trends

Yet, the fintech industry faces many challenges—increasing competition, regulatory uncertainty, and security and data privacy concerns. As the industry continues to evolve, it will be indispensable for fintech companies to balance innovation with sustainability and responsibility to maintain consumer trust and support.

Having said that, here are the future trends in fintech:

Increased adoption of blockchain technology

Blockchain can transform financial services by increasing transparency, reducing costs, and improving security. Fintech companies are already exploring various use cases for blockchain, such as cross-border payments and digital identity verification.

In fact, IBM has already created its Food Trust blockchain to track how food products arrive at their destinations.

Digital currencies

Cryptocurrencies, such as Bitcoin and Ethereum, have gained attention in recent years, and more traditional financial institutions are exploring how to merge these digital assets into their operations.


Neobanks are digital-only banks offering a range of financial services, such as checking accounts, savings accounts, and loans, without the need for a physical branch network.

In February 2021, America’s neobank Chime had already garnered 12 million customers.

New payment schemes

Fintech companies will continue developing new payment technologies and solutions, such as mobile payments, digital wallets, and peer-to-peer payments. These solutions offer greater convenience and security for consumers and lower costs and greater efficiency for businesses.

Embedded finance

Embedded finance refers to the financial services’ integration into other businesses, such as online marketplaces and social media platforms, allowing customers to access financial products and services without leaving the platform.

ESG investing

Environmental, social, and governance (ESG) investing has become increasingly popular, and fintech companies are creating new tools to help investors incorporate ESG into their portfolios. There is also a noticeable interest in sustainable fintech solutions, such as green bonds and carbon offset programs.

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Overall, the future of fintech is likely to be shaped by technological advancements, changing consumer needs and preferences, and evolving regulatory frameworks.

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