If one had to pick two themes that would shape how 2021 pans out for the world, then it would certainly be the role of financial technology (fintech) firms post-Covid-19, and the other being on how some of the world’s biggest economies collaborate with each other. With respect to the latter, there have been recent global events, such as the US election. that have certainly changed the dynamics.
With regard to fintech, the year 2020 was more of an opportunity rather than a year of turmoil. Emerging global markets specifically saw the potential that fintech possesses as the world moved online amidst global lockdowns. For MSME’s, fintech helped to close the financial void created by the pandemic through providing financial services in an efficient manner. A survey, which included the likes of World Bank, revealed that fintech companies in economies in regions such as the Middle East and North Africa registered growths as high as 40 percent. Also, firms that included digital asset exchanges as their services registered a growth in transaction volumes of 13 percent.
With respect to the Middle East region, a recent such thematic collaboration occurred with the largest fintech in the region – the Dubai-based DIFC Fintech Hive – collaborating with Israeli fintech firm Aviv. I rate such collaborations very highly since it helps the collaborating nations bond together and help the fintech platforms to reach a larger number of users. I think moves like these help not only investors, but also assist startups to better access markets at cross-country levels through embracing the power of fintech and innovation. I assume the impact will only be seen in a year’s time and the banks need to play a very important role in order to facilitate such positive disruption.