The FinTech industry has seen consistent growth over the past decade with no sign of slowing down. In 2018, the global FinTech market was worth $128bn, with a predicted annual growth rate of 25% until 2022, to $310bn. Even the global pandemic has not seemed to halt the growth of FinTech and has in fact resulted in businesses adopting new solutions to cope with the different ways of operating and trading during 2020 and to help them build for the future.
The pandemic has not revolutionised the way businesses use financial services but has accelerated the adoption of technologies that were already available. Paperless transactions are becoming less common, with a 60% fall in the number of withdrawals from cash machines in the UK in the first pandemic lockdown. In fact, the UK is the third most cashless country after Sweden and Canada.
Cutbacks in resources combined with increased demand for some services have resulted in more investment in chatbot and online support services. Conversational commerce and ecommerce are becoming more integrated due to the advances in AI in understanding the customer’s needs, and as a result, being able to direct them more efficiently to the solution they are looking for.
It’s true that in the next year to 18 months as COVID-19 hopefully loosens its grip that some may revert back to pre-2020 financial means and methods but a large proportion of the population will be newly accustomed to using FinTech solutions. Small to medium-sized businesses will have fully embraced cashless transactions and enhanced their online presence.
This rise in FinTech and the expected continual rise creates a great deal of opportunity in the IT sector as businesses look to IT experts to help them develop, implement and maintain new solutions. If you are already working in the financial services sector you will likely see a higher demand for your skills in the coming year. If you are not currently working in this area then now may be the time to invest in some upskilling. Seek to understand the way your current business utilises FinTech, research online courses and material to improve your knowledge in this field. Also look for crossovers in ERP where your area of specialism can support and integrate with FinTech solutions.
With the continuing pandemic, Brexit looming and IR35 regulation increasing in April 2021 there is a lot of uncertainty as we head into the new year, but there is every indication that FinTech will continue to rise and is definitely a niche to watch in the next few years.