The fintech industry has been steadily increasing its influence for more than a decade now. Seeing its exponential growth following the 2008 financial crisis, it is now considered as one of the main digital disruptors that are innovating the finance industry. People’s knowledge gradually starts to exceed the notion of blockchain and BitCoins. Services such as digital wallets, become recognizable and utilized in all parts of the world. Steadily, more cryptocurrencies are gaining worldwide attention, not only from financial professionals. Thousands of new startups covering everything from peer-to-peer lending to KYI solutions are emerging every year, providing businesses and individuals with financial solutions.
People’s Changed Perception Due To The Covid-19
Finance Magnates talks about what new fintech trends will appear in 2021. Experts suggest that people will change their perception of their finances as coronavirus taught them to think differently. Thanks to this new thinking, cryptocurrencies will get more space to be used even wider.
Integration Of Cryptocurrencies Into Ordinary Services
In addition, corporates will integrate cryptocurrencies within their ordinary financial system. Another trend is increased growth in P-2-P financial services as P-2-P technologies are rapidly developing. Because of the coronavirus pandemic, investment apps will be used more in 2021, and overall fintech will be continuously developing in 2021. Let’s break the largest trends down.
Cryptocurrencies Will Continue Its Growth
Cryptocurrencies, one of the most followed fields of FinTech, are expected to continue their dynamic growth as an increasingly larger portion of the population becomes familiar with digital currency.
A major benefit of using cryptocurrencies in your business is the long-term cost-saving due to eliminating the bank fees that were earlier associated with each transaction. It is reported that up to 5% of every transaction will be saved. H
aving said that, the utility of cryptocurrencies stretches significantly beyond cutting costs. It is quicker, with the transactions proceeding in a matter of minutes rather than hours or days. It also works worldwide which is another core selling point.
The past year and the Covid pandemics have triggered the online working mode and pushed companies of all sizes to attempt moving their operations online. This trend is not likely to reverse and increased cross-country and cross-continental partnerships and deals are expected, which creates the demand for a means of transactions that cryptocurrencies offer.
Thus, in 2021, not only are the cryptocurrencies not due to slow down their development, they are likely to bring us one step closer to eliminating the traditional payment methods and going transforming to fully digital. Currencies to watch out for are not only Bitcoins but also Litecoin, Ethereum, Cardano, and EOS.
Peer-To-Peer Lending To Soar Up
Peer-to-peer lending is another trend worth monitoring in the upcoming months. On the 21st of October, a financial bill aimed at maintaining openness to international markets in post-Brexit Europe was introduced.
The bill can make the P2P services even larger and it is important to remember that while in countries like United States, United Kingdom, or China, peer-to-peer lending has been present for approximately 15 years, it is still a developing industry in large parts of the world. The financial bill will create opportunities and market entry possibilities for many fintech startups.
Micro-Investment Platforms
Finally, the next trend that is expected to bloom in 2021 is the micro-investment platforms. According to research, 40% of Millenials do not invest in the stock market due to insufficient savings and a lack of knowledge.
Thus, micro-investing apps that allow them to insert and subsequently save small amounts of money appears like a simple and suitable solution. Apps such as Stash allow the users to start investing with an amount as small as one cent! Other apps are not far behind with an amount ranging from 1-5$ daily investment.
Thus, they provide young people with the possibility to use their spare change or cut out on that morning bagel and rather invest that money. Considering that micro-investing apps are easy to use, do not require big funds or a strategy, and are low-cost when it comes to the small amounts of money, they constitute a perfect solution for beginners.
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