Race to establish fintech dominance

Yasmine Raso

Senior Journalist, Financial Newswire

24 October 2022

Nations’ financial technology innovation is set to be the key determinant in establishing the “powerhouse economies” of the next decade, according to deVere Group chief executive, Nigel Green.

The comments come after it was estimated that global investment in fintech hit $91.5 billion in 2021 to support the rapid rate of digitisation within the financial services industry, with Green noting “it’s a given” for several countries to engage in a “soft war for fintech dominance”.

“There’s an intensifying war happening right now that is going to change our futures. It’s not the war that might first come to mind, but rather it’s an epic tech and innovation race,” he said.

“Faced with a wide range of crises and challenges, particularly social and political disruption, public health emergencies, climate change, and economic turmoil, nations around the world are increasingly focused on stamping their dominance politically, culturally and economically.

“The winners in the battle for this influence will come down to which country has superior technology.

“The better tech, the more sophisticated the military; the wider and more effective the political, social and cultural influence; and the more robust, adaptable and future-proofed the economy.”

Green also said fintech has been the driving force of “the most profound transformation in history” for the financial services sector, boosting its productivity and competition.

“It’s redefining and reshaping in fundamental ways, in areas including mobile banking, saving and investment apps, e-payments, peer-to-peer lending, cryptocurrencies, robo-advisers and crowdfunding, amongst others,” he said.

“It can boost wider innovation and competition across the economy, while managing the risks. It can also broaden regulatory supervision to enable authorities to foster a safe, efficient, and inclusive financial system, which will help shore-up the economy.

“It can help bridge the gap between public and private sectors which will create a more agile economy and help strong cross-border coordination and sharing of information and best practices.”