2021 Fintech trends: moving between mountains

The Arab Digital Media Journal- 2nd of December2020:


‘During the pandemic, a surge in Fintech apps and their usage reflected notably on the digital payment sector. Regardless the recession of the Fintech startups financing and other major challenges, they will continue their trials to bring new products to life’.

The main theme for the Fintech companies is that ‘in 2021 things will not be easy like 2020’. The key stumbling block is that the financial landscape is a little bit vague even with new reports about Pfizer, Moderna, SputnikV and other locally manufactured vaccines even if we took into consideration their announced effectiveness results (which are from 70 to 80%).

The harsh outlook will come mainly from the value-creating processes which will depend basically on Big Data that is changing rapidly and the contradictions between data exchange and their privacy which are on top of the legislator agenda. This goes far beyond the recent idea of Facebook in changing its cryptocurrnency brand from ‘Libra’ to ‘Dime’.

The other block will be financial fraud which is related to cyber security. Last year, the Financial Action Task Force (FATF) found that organized crime in the form of money laundering and terrorist financing is estimated to cost the UK at least £37 billion each year.


Let us apply this notion at the gaming industry. In its 2020 iGaming Report, iovation (a TransUnion company) analyzed more than four billion global online gambling transactions screened for fraud indicators found that most of these frauds came in the form of bonus abuse (rising 72 percent from 2018 to 2019), gambling bonuses, and credit card fraud through mobile transactions (a 37 percent growth in from 2018 to 2019).


Digital banks, contactless cards and wallets are the living examples provided by the Fintech companies in 2020 but are they destined to evolve or survive through 2021 and after the pandemic?

In its Fintech 2021 predictions report, KPMG anticipated the rise of this trend following a wave led by of Hong Kong (SAR), Australia, Singapore, and more countries in the Asia Pacific region to develop digital banking regimes and issue digital banking licenses.

Beyond the financial aspect, blockchain technologies could have a significant impact in treating the supply chains disruption by integrating other elements to serve health, education and other sectors.
Research efforts were not sufficient to turn it into a driving force for economies which witnessed closures which makes its future survival, as a digital transformation technology post- Covid19 pandemic, threatened.

However, some of the abovementioned digital banks have found a partial solution by integrating it into their wallets to motivate more customers to join the band.

The digital banking trend also can seduce e-commerce platforms like Amazon, Alibaba and etc to enter new markets but they will have to develop more security apps for the infrastructure of their cloud systems or re-engineering them completely.

The main challenge to the contactless cards it is more about securing the transactions while E- wallets main focus is on the cloud aspects. The idea behind the two products is stunning but if major card players can mitigate both into one system to maximize the benefit of both.

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