What’s the best career for a shark?
All jokes aside, the financial technology (fintech) industry is growing quickly across markets all over the world. Fintech companies are seeking digital solutions for financial decisions big and small.
This article will explore how the fintech industry got to where it is today and where it’s going in the next few years.
Fintech in Emerging Markets
An emerging market is a developing market that does not yet meet the standards of a fully-developed market. Examples of emerging markets include China, Brazil, and Turkey.
Individuals in emerging markets are becoming wealthier and have a greater need for financial services. They also have greater access to technology which makes fintech more appealing.
In developed markets, there is a lot of competition in the financial industry, technology industry, and the fintech industry. However, in emerging markets, there is an unmet need that fintech companies can take advantage of. This type of blue ocean market strategy could be a successful solution for companies that are tired of the stiff competition.
Let’s take a closer look at the reasons fintech has grown so much in emerging markets.
Higher Technology Adoption
In 2018, about 50 million people in Turkey had smartphones. In 2021, 58 million people have smartphones. More people in emerging markets are using technology to make daily activities, like personal banking, easier.
On top of that, digital banking is no longer limited to wealthy individuals or big businesses. The average individual or family can use a cellphone, laptop, or desktop computer to manage their money. The fintech industry is taking advantage of this trend by establishing companies in emerging markets.
Home Grown Fintech Companies
The other reason for fintech industry growth in emerging markets is new, local fintech organizations popping up across the world. Some governments in emerging markets are partnering with local fintech to support local company growth.
Governments in emerging markets may be able to cultivate innovation within the fintech industry by showing support for home-grown organizations.
The Future of Fintech
The fintech industry is projected to grow by 20% by 2024. In addition to individual apps for things like banking and investing we may also see a rise in “super apps”.
Fintech super apps like WeChat allow users to manage their investments, debt, and payments while also using. traditional chaat feature. Super apps could potentially take over the use of smaller, individualized apps because they are more convenient.
No one can predict the future, but the growth of fintech is a pretty good bet!
Need to Know More?
So, fintech companies are growing in emerging markets because of greater access to money, technology, and super apps. Instead of competing with dozens of other fintech groups, some organizations are opting to move to emerging markets to explore a blue ocean strategy.
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