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Shaping the Future of Digital Finance: What Needs to be Done?

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Shardul Bhatt
Shaping the Future of Digital Finance: What Needs to be Done?

Digital finance landscape is changing. As the industry transforms, innovations will improve FinTech as we know it. Read this blog to know more.


Many people think of FinTech as an innovation that keeps on evolving. However, real digital change in finance comes with accessibility.


Africa is a global leader in mobile money services. More than 282 mobile money services are located in Sub-Saharan Africa. There are an estimated 100 million mobile accounts in Africa. It is playing a crucial role in providing access to money to small businesses and consumers who earlier had little or no access to banking services to send or receive money over long distances.


With the inception of M-Pesa in 2007, Africa witnessed its emergence in the FinTech industry. People in Africa carry tons of cash, which makes them vulnerable in several parts of the country. On top of that, many didn’t even have access to banking services for managing the money they had.


The real digital finance revolution came in the form of accessing digital finance products and banking services. It empowered people and communities to access banking services and move to other sources of income. People can now start their businesses with access to digital finance, shaping the future of Africa’s FinTech landscape.


(Source: Digipay)


The changing FinTech landscape


One of the biggest fintech products is digital payment, which holds 25% of the fintech market. It provides the ability to send or receive payments, bringing digital finance closer to people.


28% of the top 50 FinTech companies are in the lending sector. Capital access is becoming a key priority for small businesses and proprietors. Lending solutions created by a software product engineering company offer easy access to money, enabling consumers and businesses better resource accessibility.


73% of the Millennial generation is excited about new FinTech innovations from companies like Apple, Google, Facebook, and more. With access to digital banking and financial services on, Millennials are witnessing a global transformation in the FinTech industry.


The Future of Digital Finance: How to Shape It


Traditional banking and financial services are changing. Consumers are more focused on convenience, which digital finance products provide them with ease.


On the other hand, P2P lending provides access to capital and money that enables consumers and businesses to undertake new projects and gain better returns. Here’s how the future of digital finance will be shaped:


  • Increasing access to finance
  • The future of digital finance will be shaped mostly by access to money. The more people can access capital, the better they will contribute to economic growth. Access to finance also entails people getting access to resources that were unavailable to them earlier. It will enable them to explore newer avenues for creating new wealth in the economy.
  • New financial technologies
  • More than anything, new technologies and product engineering services will reshape how we look at FinTech in today’s world. Digital finance examples in Blockchain will transform how the FinTech industry operates today. More importantly, banks will move to Blockchain to create a secure and transparent ecosystem of transactions. Fraud will minimize, and banks will be able to easily monitor what transactions are taking place.
  • Ease of FinTech integrations
  • One of the primary reasons FinTech is growing is the evolution of digital finance products into super apps and the entire ecosystem of financial services. These integrations are enabling FinTech startups to create new and diversified products. It also allows them to partner with other companies and create platforms for consumers to make use of all fintech services from one place. 


Conclusion


FinTech startups and enterprises are proliferating. However, digital finance is taking new turns as companies venture into new ways of working. Access to capital is one of the major game changers in the FinTech industry. It would be exciting to see where the FinTech industry goes as new technological innovations also come into the picture and digital finance companies take their advantage for the societal good.

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Shardul Bhatt
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