Recent research states that AI will conquer Fintech development in the next five years. According to a study conducted by Bryan Zhang with WEF, AI will dominate the development of the FinTech development sector.
A survey showed that 70% of fintech respondents consider AI the most relevant and fast-evolving topic.
Bryan Zhang, co-founder of the Cambridge Centre for Alternative Finance, launched a study with the World Economic Forum at their annual meeting in Davos.
The research analyzed 227 fintech firms across five verticals: digital lending, digital capital raising, digital payments, digital banking, and savings. Six regions covered: US & Canada, Asia-Pacific, Europe, Latin America, Middle East & North Africa, and Sub-Saharan Africa.
The Main Findings of the Study
AI dominates future discussions:
A survey found that AI is the most relevant topic for fintech development in the next five years, followed by embedded finance, the digital economy, and open banking.
Societal and economic impact:
Fintechs are concerned about the lack of incentives to contribute to environmental and inclusion goals. 41% want sustainable finance schemes, while 31% consider existing ones ineffective.
Growth drivers and hindrances:
Consumer demand drives growth for 51% of global fintech firms, followed by availability of a skilled workforce (39%) and favorable regulatory environment (38%). 56% of firms identify macroeconomic factors as the top hindrance to growth.
Regional disparities:
Latin America and the Caribbean region's fintechs report a significant drop in funding, hindering growth. In contrast, 52% of Sub-Saharan Africa's fintechs consider the funding environment supportive.
Regulatory infrastructure: 55% of fintech firms find digital regulatory and supervisory infrastructures effective for growth.
Financial inclusion impact:
Fintech growth relies on serving underserved segments, including women (39%), low-income (40%), and rural customers (27%).
Overall, AI empowers the digital and Fintech industry with its potential features.
