Global fintech investment up from $87.1 billion in H2 2020 to a record $98 billion in H1 of 2021. According to a new report entitled “The Global Fintech Landscape: Challenges, Collaboration, and Cloud 2022,” : The global Covid-19 pandemic brought about significant challenges and disruption for many organizations; however, the FinTech sector show remark resilience due to changes in consumer banking and spending habits and increase in digitalization among traditional financial services institutions.
“The Global Fintech Landscape: Challenges, Collaboration, and Cloud 2022” is based on a survey of over 500 senior decision-makers within Fintechs from 12 countries globally, including North and South America, the UK and Ireland, Singapore, and Australia.
The report noted FinTech’s have begun to deliver significant value to both consumers and businesses and have reshaped how some interact with financial services. Yet, while the fintech sector is going from strength to strength, these organizations still face challenges such as over 81% of Fintech identifying data issues as their most significant technical challenge. Of this figure, 41% struggle to leverage data for analytics, machine learning, and artificial intelligence, while 40% cannot connect to customers’ applications and data or legacy systems.
The report emphasizes, Fintech is willing and able to over these challenges, with half (48%) planning to invest in data management technologies over the next 12 months, while 45% expect to implement AI and ML.
This development is exciting since adopting next-generation data platform technology will allow Fintechs to connect to their customers’ wide range of applications and data systems and achieve much-needed access to real-time, bi-directional data. In doing so, Fintechs can ensure their offering meets their customers’ needs and capitalize on the opportunities to collaborate with traditional financial institutions as they continue their digitalization journey, the report noted.