The fintech space has seen a lot of exposure in the last few months, from international reports to the release of the Fintech Landscaping Report by the Intergovernmental Fintech Working Group (IFWG).
In a recent opinion piece, Daniel Goldberg, co-founder of Bridgement, also unpacks the fintech space and shares some of his fintech predictions for 2020. “We’ve seen unprecedented developments in the fintech space over the past few years. Innovations in mobile payments, digital currencies, cloud software and digital lending have completely changed the way consumers engage with financial services,” according to Goldberg.
Some of his fintech predictions for this year include:
| ● | Digital-only banking – lowering the need for physical infrastructure and optimising processes, online banks will be able to run more cost-effective than traditional banks. |
| ● | More corporates moving into fintech – several big companies such as retail chains and the Telco’s are moving into the Fintech space by offering insurance and credit products. |
| ● | Continued scepticism for cryptocurrency – currently in South Africa, there are no specific laws or regulations that address the use of virtual currencies. Mass adoption will only occur once it is regulated and more people become familiar and comfortable with cryptocurrency. |
| ● | Increase in digital security – as we continue to transact and communicate more online, the risk for fraud and other cyber threats will only increase. Local fintech companies will help businesses avoid new risks including EFT fraud and hacked accounts. |
| ● | Open banking – South Africa is set to follow the global trend of open banking. This means businesses will experience more automation, better security and greater efficiencies with financial services. |
| ● | Further growth of fintech lenders – filling the gaps that banks are missing in terms of SME funding. More partnerships between fintech lenders and banks and other non-financial institutions will be seen. |
Click here to read the opinion piece.
