# Fintech Predictions for 2021 Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2021-02-09 Category: FINANCE Category URL: https://financedigest.com/category/finance Meta Title: Fintech Industry Trends 2021: What to Expect Meta Description: Discover the emerging trends in the fintech industry for 2021 as we move forward from the challenges of the past year. From digital payments to the impact of URL: https://financedigest.com/fintech-predictions-for-2021html ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/community-banks-fintech-alliance-1736838586362-compressed.jpg) _By **Björn Goß,** CEO and Co-founder of Stocard_ _looking at what we can expect from the fintech industry in 2021 as we emerge from one of the most challenging years in a century._ The past year has been one no one could have predicted just over a year ago. Every person has been [affected by the COVID-19 pandemic](https://www.financedigest.com/outbreak-of-the-covid-19-pandemic-is-expected-to-severely-affect-the-global-packaging-and-labelling-services-market.html "Outbreak of The COVID-19 Pandemic is Expected To Severely Affect The Global Packaging And Labelling Services Market ") which has reshaped our lives, work and behaviour for good. Most industries had to quickly adapt or pivot to [meet the challenges the restrictions bought in and fintech](https://www.financedigest.com/fintech-incubation-more-value-than-meets-the-eye.html "FINTECH INCUBATION: MORE VALUE THAN MEETS THE EYE") was no exception. In [fact it was one of the areas that saw significant growth](https://www.financedigest.com/trapping-and-mating-disruption-systems-market-is-witnessing-high-sales-growth-over-2028-fact-mr-report.html "Trapping And Mating Disruption Systems Market Is Witnessing High Sales Growth Over 2028, Fact.MR Report") as a consequence of a change in behaviour. [Digital services](https://www.financedigest.com/major-myths-and-questions-holding-banking-and-financial-services-back-from-full-digital-id-adoption.html "Major myths and questions holding banking and financial services back from full digital ID adoption") were introduced at a much quicker pace as demand exceeded predicted expectations and these changes are set to stay and evolve this year. So what can we expect in 2021? Here we take a look at the exciting areas of [fintech as we continue](https://www.financedigest.com/the-fintech-digital-revolution-will-continue-in-2022.html "The Fintech Digital Revolution Will Continue in 2022") to navigate the pandemic. **A permanent shift to** [digital payments](https://www.financedigest.com/why-anti-spoofing-fingerprint-technology-is-essential-for-the-continued-growth-of-digital-payments.html "Why anti-spoofing fingerprint technology is essential for the continued growth of digital payments") The restrictions imposed by the pandemic has meant that digital [payments across all sectors](https://www.financedigest.com/combatting-economic-uncertainty-in-2023-with-the-payments-sector.html "Combatting economic uncertainty in 2023 with the payments sector") saw a huge boom in 2020. Many companies increased their investment in [improving the likes of cashless payment](https://www.financedigest.com/improving-customer-experience-and-profits-with-embedded-payments.html "Improving customer experience and profits with embedded payments") services to make them covid secure. In addition many businesses had to pivot and move the sale of goods and services to [online platforms](https://www.financedigest.com/brand-strategy-tactics-for-an-online-learning-platform.html "Brand Strategy Tactics for an Online Learning Platform"). Whereas perhaps some of the measures the pandemic has introduced us to may be temporary we [see digital payments as a permanent change](https://www.financedigest.com/the-automation-control-system-market-to-see-through-the-probable-sea-change-through-digitization.html "The Automation Control System Market to see through the probable sea change through digitization") for both organisations and consumers alike. Both parties have experienced the benefits that digital payments and services can bring and want to keep these in place [moving forward](https://www.financedigest.com/life-is-moving-forward-china-declares-new-covid-phase.html "‘Life is moving forward’: China declares new COVID phase"). In addition, in the UK there is already talk of increasing [contactless payments from £45 to £100 in the foreseeable future](https://www.financedigest.com/contactless-payments-the-way-of-the-future-or-security-scare.html "Contactless Payments – The Way of the Future or Security Scare?"). While this would not impact mobile payments, since you don’t have to enter a PIN on the payment terminal when paying with your phone anyway, it will further shape the habit of ‘tap & go” with physical cards and eventually pave the way for an even more mainstream adoption of mobile payments  What we expect to see is even more adoption of these practices to all [sized businesses](https://www.financedigest.com/covid-19-is-impacting-the-variable-speed-drive-market-size-business-revenue-forecast-leading-competitors-and-growth-trends-2028.html "COVID-19 Is Impacting The Variable Speed Drive Market | Size, Business Revenue Forecast, Leading Competitors And Growth Trends 2028"). So for now it may be that it’s just medium to large organisations adopting contactless technology, but consumers will now [come to expect this service from all businesses](https://www.financedigest.com/any-business-can-now-offer-their-customers-financial-services-how-embedded-finance-is-reinventing-the-wheel-when-it-comes-to-banking.html "Any business can now offer their customers financial services: How embedded finance is reinventing the wheel when it comes to banking") they engage with. **PSD2 as an [enabler for all fintechs:** 2021 will see PSD2 regulation finally become fully effective ending the lock-in [effects by banks by allowing fintechs the ability to access customer’s banking data](https://www.financedigest.com/can-banks-compete-in-the-digitisation-race-without-effective-data-integrity.html "Can banks compete in the digitisation race without effective data integrity?"). PSD2 was created to [enable customer choice as it allowed them to access their bank](https://www.financedigest.com/the-open-banking-revolution-enabling-accessible-and-inclusive-finance.html "The open banking revolution – enabling accessible and inclusive finance") data through other applications. Up until now it’s not been mandatory but as it comes into play this year it will bring with it a [change in the way consumers](https://www.financedigest.com/the-future-of-retail-and-the-ways-that-retail-has-changed-for-consumers-during-the-pandemic.html "The future of retail and the ways that retail has changed for consumers during the pandemic") use financial services. The PSD2 [regulation](https://www.financedigest.com/uk-finance-regulators-should-pay-heed-to-energy-security-policy-says-sunak.html "UK finance regulators should pay heed to energy security policy, says Sunak") empowers customers to make use of more suitable products and services as they’re no longer limited to those offered by traditional financial institutions that have dominated for years. This will undeniably drive the [next wave of growth of the fintech](https://www.financedigest.com/the-next-wave-of-fintech-is-here.html "The Next Wave of Fintech is here") sector.  This will result in a drive in competition and in 2021 fintechs will be able to [create a seamless experience and on-the-go financial services for customers](https://www.financedigest.com/customer-experience-creating-the-calm-in-the-chaos.html "Customer Experience: creating the calm in the chaos"). **The super app [hits Europe](https://www.financedigest.com/russian-covid-cases-hit-record-high-as-eastern-europe-imposes-new-curbs.html "Russian COVID cases hit record high as eastern Europe imposes new curbs")** The future of banking will see a [move towards](https://www.financedigest.com/the-shavers-market-to-move-towards-constructive-advancements.html "The Shavers Market To Move Towards Constructive Advancements") consolidating services and payments in one place as consumers show favour towards using one app with an easy-to-use interface that allows them to do everything they need to in one place. This will lead to the [digital wallet super app](https://www.financedigest.com/community-fintech-11onze-to-launch-el-canut-a-super-app-offering-universal-banking-accounts-and-digital-debit-cards.html "Community fintech 11Onze to launch – EL CANUT – a super APP offering universal banking accounts and digital debit cards") becoming the central hub in our lives for everything around money, shopping, and banking as payments and accounts migrate over to our smartphones. Like we already see in Asia, super apps will emerge in Europe as well, with several players combining [digital services](https://www.financedigest.com/how-financial-services-organisations-can-address-the-vulnerability-lag-and-safeguard-their-most-important-digital-assets.html "How financial services organisations can address the ‘Vulnerability Lag’ and safeguard their most important digital assets") in one app. The consumer can decide which services are the best at meeting their individual needs, which means the [apps that can add the most value beyond banking](https://www.financedigest.com/why-you-should-use-a-mobile-banking-app-and-how-to-make-the-most-of-it.html "Why You Should Use a Mobile Banking App – and How to Make the Most of It") and payments will stand out in the marketplace in 2021. Whilst the [next year](https://www.financedigest.com/uaes-adnoc-to-open-swiss-trading-office-next-year.html "UAE’s ADNOC to open Swiss trading office next year") seems uncertain and life will never be the same as it was before 2020, some of the changes brought by the pandemic will benefit us all offering greater choice, convenience and suitable services. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---