By Nigel Green, CEO & Founder, deVere Group
Fintech will determine which countries will become powerhouse economies of the next decade.
This is something I recently flagged following my appointment as an adviser to Thailand’s National Innovation Agency (NIA), a Thai government agency.
The NIA has a special focus on fostering strategic innovation, boosting innovation investment, and nurturing the innovation ecosystem to enhance national productivity, economic restructuring, social development and global competitiveness.
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.
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.
With the blistering pace of the digitalization of everything in our lives, including the way we manage, use and access money, it’s a given that most major countries are already engaged in a soft war for fintech dominance .
It’s estimated that global investment in fintech peaked at $91.5 billion in 2021, and the countries in which the most was invested are likely to become more successful and competitive over the next decade.
The financial sector is currently undergoing the most profound transformation in history. What is driving this industry evolution? Fintech, which is the use of technology to deliver financial services to consumers.
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-advisors and crowdfunding, amongst others.
How can economies benefit from fintech?
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.
In addition, it can help proactively shape markets to encourage modernization, competition and productivity within the financial services sector.
Plus, 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.
For these reasons, economies with a strong fintech industry will prevail.
Without strong finances and financial industry, a country has limited influence. The future of finance is technology. As such, fintech will determine the powerhouse economies of the next decade.