The COVID-19 pandemic situation has proven the need of fully digital and contactless banking and payment solutions which has significantly pushed the whole fintech sphere forward. The same pandemic has pushed even the most traditional banking institutions towards their new digital path. Moreover, that’s exactly the fintech field that makes personal loan market go both live and digital all around the globe. As one of its major signs: this one in America has grown to over 38% influenced by the world economic crisis.
Those fintech using the Blockchain technology are showing better results than traditional institutions neglecting it. Why so? Blockchain could reveal all the internal private information and yet speeding all the financial processes and data transfers resulting a better and more efficient communication between departments, institutions, etc. The bravest ones are although building united treasuries on Blockchain and/or use it to optimize their supply chains and current logistic schemes.
What are the trends for the upcoming 2021?
The most important move of 2021 would be the general change in everyday financial activities perception by the majority of people. The alternative living that has established with the pandemic has expressed the need in alternative financial opportunities and methods, among them digital assets, private lending, wealth management, etc. and most of them no longer cash-driven or fiat-based. As the current experience shows that only technological, advances and innovative solutions are stable to economic shoots, shocks and shutdowns. Thus, this what governments and traditional institutions should be looking at over the next year.
Fintech and Blockchain experts believe that in 2021 Bitcoin price would exceed 20k which would be one of the major reasons for digital currencies massive adoption. This heating price would also make a favorable impact on general interest in digital currencies and Blockchain from even those remaining skeptical. This would also be influenced by the emerging fintechs that enable digital currency payments and purchases. Blockchain specialists are also looking forward to a better overview of digital currencies by governments and regulatory institutions.
The already mentioned peer-to-peer services are also expected to grow in technology as far as in number of users opening side financial and investment opportunities for people from all around the globe. These are exactly the peer-to-peer technologies and mechanisms that would bring brand new business models live in 2021.
Retail investors and traders would continue to go towards massive usage of DeFi solutions in order to increase their passive income. This wave started immediately with the pandemic would continue despite epidemic situation. Those new investors and investments would be strongly related to social media platforms such as TikTok and would depend on the content generations and those digital currencies linked to this very process.
Fintech development would be also inseparable from remote presence and localization in all industrial and economic spheres. Working for a better living of every customer, enabling hyper personalized banking and financial experience, fintech field will continue boosting demand for expertise in software development, especially in Big data. Thus, fintech would create both directly and indirectly higher tech expertise and workplaces which is one of the top priorities in post-pandemic and post-crisis world.
