In a new report at the World Economic Forum meeting in Davos it is learned that the worldwide fintech industry is not just doing well but is also getting ready for a future with cool stuff like artificial intelligence (AI), embedded finance and open banking. Bryan Zhang, who leads the Cambridge Centre for Alternative Finance, shared some good news saying that the fintech industry is doing really well and showing strong strength and toughness.
During a panel discussion at the press conference, Zhang expressed his surprise at the consistently high customer growth rates, surpassing 50%, across various regions and industry verticals. The report shows that the fintech industry is doing great, handling challenges well and performing strongly even after the pandemic.
Drew Propson, Head of Technology and Innovation in Financial Services at the World Economic Forum, highlighted a surprising revelation from the report – 63% of surveyed fintechs believe that their regulatory environment is sufficient and suitable for their platform activities. Surprisingly, fintech companies and regulators getting along shows that both the government and private companies are working together to fix the gap between them.
Propson expressed her encouragement at witnessing the continued strong performance of the fintech sector in the wake of the pandemic. Average global customer growth rates exceeding 50% from 2021 to 2022 showcase the industry’s resilience.
But there are some problems. The economy is tough and there is not as much money for fintech. Propson says we need to keep collecting information to figure out what is wrong and get support from both the government and private companies in finance.
On a different note, fintechs point out a lack of incentives or mechanisms to contribute to environmental and inclusion goals. Notably, 41% of fintechs emphasize the need for sustainable finance schemes, while an additional 31% deem existing schemes ineffective.