A financial services industry professional with more than four decades of top-level international experience, Nigel Green’s over-arching mission, is to help expatriates worldwide reach their long-term financial goals through the powerful combination of personal financial advice and innovative digital solutions. Nigel originally formed the powerhouse that is deVere back in 2002 offering bespoke financial advisory services such as insurance, low-cost investment solutions, asset management, online banking and fintech solutions. He embraces new disruptive technologies and is an advocate of pioneering fintech solutions as is evident by the Crypto, Venture capital and NFT investment platforms offered by his company.
The fintech revolution we’re witnessing is unstoppable. The financial services industry is experiencing its most profound transformation ever. And it’s all down to fintech.
Financial technology, or fintech, is the use of tech to provide financial services to consumers, and is redefining and reshaping the sector at lightning speed and in a major way.
The growth is being driven by skyrocketing investment into the sector. In the second half of 2021 alone, global fintech investments recorded $210 billion across 5,684 deals (venture capital, private equity, and mergers and acquisitions), according to KPMG findings.
In addition, investor interest in crypto and blockchain was particularly high, but the range of fintech services continues to expand. The most popular fintech investment last year was the payments sector, attracting $51.7 billion.
“Investment in the payments space continues to boom, both in mature markets like the U.S. and U.K. — and in emerging markets like Africa, Latin America, and Southeast Asia. Throughout 2021, there’s been an extraordinarily high level of VC investment due to the nature of the global economic recovery combined with the digital transformation that has been accelerated by Covid-19,” stated Courtney Trimble, KPMG’s global leader of payments.
This trend is set to continue, even accelerate further, in 2022 and beyond. Indeed, the world’s top 100 fintechs already have a value of $2.7 trillion, they’ve proven themselves and they aren’t going anywhere.
Fintech demand
I believe there are three key reasons why fintech demand will continue to soar in future.
First, clients. More and more clients want all their financial services requirements to be managed online or via mobile apps. It’s all about instant access, 24/7, from anywhere in the world.
Second, financial inclusion. Fintech offers safe, secure, convenient and affordable global digital payment. I believe 2022 will be crucial in the fintech revolution, as lawmakers and regulators step up their focus on catering to vulnerable parts of the economy, scale up production and research and development to bolster an increasing number of fintech transactions.
Third, businesses. Fintech offers companies cutting-edge ways to diversify, reduce costs, enhance the client experience and meet regulatory requirements.
Cryptocurrencies
Looking to the future, crypto and blockchain will continue to transform fintech. Bitcoin, the world’s largest cryptocurrency, has become an increasingly mainstream part of the global financial system. It is now legal tender in El Salvador and the Central African Republic, with many more set to follow suit this year, say experts. In addition, more and more central banks are looking to create CBDCs (central bank digital currencies).
Bitcoin isn’t just about offering typically good returns on investments, it’s also a force for social good, providing an exit from both financial and political repression. It can act as a shield against hyperinflation, and unlike fiat currencies, Bitcoin can’t be manipulated by modifying rates or increasing quantitative easing. Crucially, Bitcoin’s supply cannot exceed 21 million, so, in essence, it’s practically devaluation-proof.
Furthermore, in terms of financial inclusion, Bitcoin plays a massively beneficial role as it can be sent safely and securely, with no censorship, helping the 1.7 billion global ‘unbanked’ population
Consequently, as a long-time supporter of fintech, this lightning progression is an immensely positive force. It has the potential to make a fundamental difference to billions across the globe. It’s helping to create an ever more connected world, allowing more people than ever before to achieve their financial ambitions. It has the power to create a better tomorrow.