Fintech to become more connected to economy, says Money 20/20

Fintech to become more connected to economy, says Money 20/20
Money20/20

A new report from tech event organiser Money20/20 says that “we are on the cusp of a new wave, Fintech 2.0, where fintech becomes intrinsically more connected to the economy”. The organisation has released its first whitepaper outlining its predictions for the new era of fintech and what to expect in the next five years. 

According to Money20/20, the previous wave of financial technology focused on the digital distribution of existing products and services, but it believes the industry is now shifting towards digitally native financial services. 

The organisation has identified four key drivers for industry leaders and experts to monitor: 

  • The macro environment: The world that financial technology resides in 
  • Technology: The operational pieces of financial technology 
  • Information: Dynamic data and algorithms driving decision-making 
  • Application: What financial technology is being used for

Based on these, it has made a number of predictions that it says will “ultimately become the Building Blocks of Fintech 2.0”. These are:

  • Assets and central bank digital currencies (CBDCs): Within three years, five of the 10 largest economies will have central bank digital currencies in the market
  • Banking technology stacks: Within three years, banking tech stacks will be predominantly cloud-based, with significant elements of core processing being open source-based within five years
  • Commerce experiences: Within five years, personalised cross-platform digital algorithms or Super-Agents will represent 20 per cent of retail commerce transactions
  • Data: Like Windows, Unix, Mac, Android and iOS today, data platforms will become the new operating system as the industry shifts from big data and good data
  • Ecosystem: Within five years, fintech companies will take three of the top 10 slots of the most valuable companies

“The next era of fintech is going to be special,” says Money20/20. “We are going to see incredible changes that will move the needle for the sector.”

Read the full whitepaper
 

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