June 2 2020 | AtoZ Markets – When the word fintech was first coined, it was used to refer to the technology used by financial institutions. With the advent of modern marvels like online banking, online shopping, and cryptocurrencies, however, that meaning slowly began to change.
Fintech now encompasses consumer-centered services spanning throughout industries like investment management and education. The evolution of fintech shows no signs of slowing down, so what does the future hold for fintech in a place like Malta?
Areas where Malta’s fintech industry is looking bright
In business, few things are more important than knowing your target market. Technology is making it possible for companies to know what customers like and what they spend their money on. This makes it easy to offer tailor-made services that are customized specifically for them. Real-time data is fed to service providers who know the appropriate time to offer their services.
Fintech gives finance a sense of humanity; you’re not just dealing with a lifeless machine. You’re dealing with something that knows you like nobody else, couple that with light speed convenience and customer satisfaction is guaranteed.
Most cryptocurrency trading volumes are facilitated by companies located in Malta. The Maltese government collaborated with fintech experts to lay the groundwork for adapting to the changes coming with blockchain technology. A National Blockchain strategy was developed and with its own laws on blockchain and cryptocurrencies, Malta has proved its dedication to fintech.
With low costs, transparency, and the free movement of services in the EU, Malta’s fintech industry is looking bright. Consumers are protected, the market is airtight and the economy is stable. The corporate tax model in Malta is one that attracts businesses from around the world, so there’s no doubting fintech’s relevance will only increase in Malta.
Charity goes digital
Traditional banking is losing its relevance. Situations like the COVID-19 pandemic will only repeat themselves in the future. Fintech’s role in social distancing has proved its importance and usefulness. Crowdfunding is set to be smoother in Malta with platforms like Patreon and GoFundMe rendering bank loans useless.
Why go to a bank for a loan when you can sit at home and receive support from all over the world? Investors can be reached at the touch of a button, no need to exhaust your resources finding them.
Click and pay
When Statista Data predicted that mobile payments will surpass the $1 trillion mark in 2019, many were paying attention. With everyone and their nephew owning a smartphone, that figure is only set to increase in 2020. And with more companies jumping on board; Apple with its Apple Pay and Alibaba with its Alipay, mobile payments are only going to increase in fintech friendly Malta.
Some people would rather hide their money in a mattress than take it to a bank. Many low-income workers avoid banking because they feel they can’t afford it, with all the charges and all.
Banks are more likely to shut down their branches in less fortunate neighborhoods. At least 25% of the world’s population is unbanked, leaving a huge gap for platforms like Skrill and PayPal to cater to these billions of people.
With projects like Facebook’s Libra gaining momentum, more and more people in Malta will opt for quicker and more convenient fintech solutions. After all, nobody likes queuing in banks for hours, and as for banking bureaucracy; you can expect nothing of the sort with fintech. No asking for another form because you messed up the first one, no feeling like you don’t belong because your clothes aren’t as fancy; just you and bunch of buttons that work magic.
With fintech, you have a blank check; complete freedom of action; complete control. Finance is decentralized, whether you’re from a remote village, whether you make a $100 a month, fintech is useful to you. You can take a loan without hassle, no credit or background check involved. Banks are aware of this threat to their business.
That’s why some banks are collaborating with fintech startups in a co-dependent relationship that’ll see bank customers enjoy convenience while banks maintain relevance.
Money is no object
Technology is all about convenience. As life gets more complicated, the world demands simplicity. With a fierce economy like Malta’s; quicker means richer and easier means better. Fintech saves people a lot of time, money, and energy. Fintech is the future and Malta knows it, you can bet your bottom dollar on that.