4 key opportunities to exploit in Fintech and beyond

The opinions expressed by entrepreneurs contributors are their own.

The pandemic has transformed the way people live and operate businesses. While many industries have had to adjust their processes to adapt to a new normal, some have thrived on their digital model. A good example of one that has flourished is , or fintech, which uses technology to offer banking and .

Fintech was a growth space before the pandemic, with adoption of industry services growing from 16% in 2015 to 64% in 2019. sheltered from the impact of Covid-19, they were generally able to recover faster thanks to their agile model and increased use of digital channels.

Related: Fintech Companies Have the Power to Advance Financial Inclusiveness

Key Fintech Growth Drivers

Given the digitalization trend, let's accept that fintech is here to stay. With that in mind, let's talk more about the rise of this space and some of the exciting opportunities we have in this industry.

1. Accessibility to an underserved market

One of the main reasons for the massive growth in fintech adoption is that the industry has successfully tapped into underserved markets that traditional banks often overlook. These include people who don't have a bank account or small businesses with lower profit margins. Many fintech companies have appealed to these segments by facilitating access to banking services, including money transfers and microloans.

2. Increase in contactless payments

Contactless payments have increased during the pandemic as personal hygiene safety has become a major concern. Quarantines, lockdowns and social distancing rules have also driven the rise of e-commerce, telemedicine and remote working, all of which have pushed online payments further.

You can expect these contactless methods to be part of the new normal because of their convenience. In fact, businesses are now exploring more diverse payment options like QR codes and voice-activated payments to respond to changing consumer behavior.

3. Technological Advances

Of course, since technology forms the heart of fintech, technological advancements have also been an important driver of the industry. (AI), (ML) and cloud computing are technologies that have spurred the development of fintech and will continue to do so over the next decade.

Related: Digital Twins: AI and ML are Transforming the FinTech Landscape

Future opportunities for fintech companies

Fintech has seen impressive growth in recent years. However, given the breadth of this space, it is essential to focus on the key opportunities that have the most potential. Some of them in my opinion are:

1. Integrated funding

Integrated finance refers to the integration of financial services or tools into the offerings of a non-financial company. Integrated finance also helps streamline the buying journey and remove barriers to purchase, creating a smoother customer experience. Examples of in-app financing include online stores offering loans or "buy now, pay later" (BNPL) options on their website or app.

Given the growing demand for integrated finance, fintech players are beginning to offer banking-as-a-service (BaaS) solutions. While you can quickly deliver these services through APIs, you need to build a strong risk management and compliance strategy as an integrated finance partner for businesses.

2. Artificial Intelligence (AI)

The fintech industry is notorious for processing large volumes of data, which makes AI technologies valuable...