The Fintech Sector in 2023: Between Uncertainties, Alliances and Hi-Tech Solutions

The past few months have not been easy for the sector, even if Insurtech is growing. Gianturco (Deloitte): “The current uncertainty must encourage us to look for innovative solutions. Transformation can only happen if you have the appropriate digital skills.”

We have come from difficult years for the fintech sector and beyond. The current geopolitical situation, unstable and volatile at a global level, does not help. At the same time, InsurTech companies have grown a lot, with more than $75 billion invested by venture capitalists and many others who believe in the potential of this sector.

The report is focused on Fintech for Good conducted by Deloitte globally in collaboration with Tiresia – the research center of the School of Management of the Polytechnic of Milan which studies sustainability strategies and innovation models – Fintech District and FTS Group.

“Fintech for Good” combines finance and technology by integrating the issues of environmental and social sustainability into the design, development and implementation of fintech organizations and services.

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The results of the Deloitte report

The report released by Deloitte outlines Fintech for Good as a growing sector, which is becoming increasingly widespread globally. According to the results, among the market segments that most integrate ESG factors into the design, development and implementation of Fintech organizations and services are digital banking, payments and investments, with 24% and 20% respectively. and 19% of the sample.

In terms of geographic presence, Fintech for Good companies appear distributed across both emerging (30%) and advanced (49%) economies.

I-Tech Innovation

The United States represents the first country in terms of number of Fintech for Good (30% of the total sample), followed by the United Kingdom (15%), while the Italian market shows room for growth with a share of 7% of the total sample.

“In the consultancy sector, the fintech sector has long been an essential element for innovating and changing – continues Gianturco – It is part of a drive towards innovation, digitalization, automation also thanks to increasingly innovative tools such as AI and blockchain which, enabled by cloud environments, allow companies, consumers and the world of the economy to function better.”

According to the Deloitte report, the main segments of Fintech for Good include Digital Banking, Payments, Investments, Lending, Crowdfunding, InsurTech and RegTech, in addition to TechFin.

What to expect for the fintech sector in the future?

“In a world where 1.7 billion adults do not have access to banking services, Fintech for Good offers opportunities for social and economic transformation, representing a force for change in the financial sector – comments Gianturco – These companies not only provide financial solutions innovative, but also a means to address social and environmental problems, creating value for society as a whole”, and adds: “I am optimistic about the future, the uncertainty we experience must be used to our advantage to refine our skills and go in search of increasingly innovative ideas.”

But there are obstacles and they are not insignificant: «The issue of skills is a very delicate matter – said Gianturco – Currently, transformation cannot take place if you don’t have the appropriate digital skills. And often this is exactly what happens. It is therefore essential that companies approach the issues of upskilling and training in an appropriate manner. The transformation that will take place will not be done in 6 months or a year, but in the long term. We must raise the cultural level of the country and ask for more concrete help from the institutions to become more credible in foreign eyes.”

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(Featured image by m. via Unsplash)

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