4 Fintech Trends to Expect in 2021
Political unrest, a deadly virus, and soaring unemployment may sound like an interesting night at the movies, but it's actually a succinct description of the year 2020. As our new normal materializes, what does it all mean for fintech? Here are 4 trends to expect in 2021:
A sprinkle of fintech on everything
Fintech companies are broadening their horizons, with examples like CashApp venturing into retail. Meanwhile, non-fintech players like WhatsApp are integrating digital payment features. This trend, known as embedded finance, empowers any brand to offer seamless financial services. As businesses increasingly prioritize customer convenience, we will certainly see more fintech and non-fintech models working together.
Cashing in on no cash
Digital wallets like ApplePay offer a significant upgrade to traditional payment methods, such as swiping credit cards or manually entering card details. This year, there will be more payment options for easier, cheaper and more convenient ways to transfer money between businesses and individuals. From the patient payment experience after a hospital visit to checking out at WholeFoods, there will be a higher focus on safe and efficient payment options.
Small business, big money
Many large enterprises and fraudulent businesses were able to gain funds from the Payment Protection Program in 2020, which offered loans issued by the government to support small businesses during the pandemic. Meanwhile, many eligible small businesses were forced to shut down or reduce their workforce because they did not have access to resources. As small businesses are actively seeking products and services that suit their specific needs, they will be drawn to fintechs that deliver innovative solutions. Furthermore, banks will increasingly partner with fintechs to enhance the experience and engagement of their small business clients.
Value beyond returns
The events of 2020 have allowed people to become cognizant of environmental, economic and social issues beyond their personal lives. As technology can enable individuals and businesses to contribute to the greater good, there is an opportunity for fintechs to deliver impactful products. From financial inclusion to carbon-neutral investing, there will be more fintech solutions that drive sustainability.
2021, here we go!
-Kiswana