What fintech trends will dominate 2021? Dominique Collett, head of AlphaCode and senior investment executive at Rand Merchant Investments says entrepreneurs should take advantage of increased demand for digital services.
- Get Ready for the Future. Follow SME South Africa’s 2021 Trends Report to find out the trends that will affect every business owner this year.
Read Collett’s take on trends and opportunities in the fintech space and tech tools entrepreneur should be making use of.
MORE 2021 BUSINESS PREDICTIONS
On the impact of COVID-19 on 2021 fintech trends
Demand for digital financial services was increasing, but COVID-19 provided the tipping point. Customers who had been reluctant to bank or get insurance quotes digitally were forced into the digital world and realised how much more convenient it is to interact with financial services from your app or computer.
Cashless and contactless transactions are becoming more attractive – QR codes for example had started to gain traction but with customers reluctant to hand over cards or deal with cash in stores, they became willing to use alternative methods like QR codes and tap and go.
Increased interest in digital savings tools as customers realised the importance of building a savings buffer in the event of a crisis.
The good and bad
Debt facilities are needed to help facilitate sustainability and growth for many businesses and individuals. The economic pressures have also heightened the risk of most customers.
On the fintech trends that will offer the most opportunities for entrepreneurs in 2021
Increased demand for digital services
Companies offering digital insurance, savings, bank accounts, loans etc. are well positioned to benefit in a post-COVID world.
- See also: 2020 Fintech trends
On tech tools for entrepreneurs
Remote working tools for communication and team management – e.g. Slack, Zoom, Teams, Kanban boards etc.
On words of encouragement for entrepreneurs whose confidence may have taken a knock by the COVID-19 crisis
In the midst of adversity lies opportunity. If you can see past the losses, you may find an even stronger business opportunity. Many fintechs arose from the 2008 financial crisis. 2020 has the same potential.
Remember, there are things beyond your control which require acceptance. Focus your efforts on what you can control and know that all your best efforts may not yield the hoped-for result, and that’s ok.