As world leaders like Donald Trump, top executives, academics and celebrities descend upon Davos for the annual World Economic Forum meeting, they are encouraged to back FinTech innovation.
The call comes from Nigel Green, founder and chief executive of deVere Group, a financial consultancy firm.
He stated that the technological evolution is changing how societies and businesses work. Nowhere, Green argued, were these “seismic shifts” as evident as in the financial services industry.
“The vast majority of this change is being driven by financial technology, or fintech,” Green said. “Mobile banking and investment apps, peer-to-peer lending, cryptocurrencies like Bitcoin, robo-advisers, and crowdfunding are all part of this fundamental shake-up of the space.
“The momentum and energy of this evolution now needs to be harnessed by delegates in Davos. They need to commit to FinTech by using their time, energy and resources for its research and development for three principal, positive reasons.”
Firstly, he argued that FinTech can boost global financial inclusion across the world. “It can provide access to financial services for millions of people who live in remote areas and/or who might normally not be able to use financial services because of historical biases of traditional financial companies,” Green said. “Helping individuals, firms and organisations successfully manage, save and invest can only result in better, stronger and more stable communities for us all.”
Secondly, he stated that harnessing the powers of Fintech would enable businesses to cut cost and to more easily live up to their regulatory compliance.
Thirdly, Green reminded world leaders that even if they would not commit to the industry, the evolution would still happen as consumers constantly yearn for better services.
“With a slowing global economy, it is an opportunity that the world cannot afford to miss,” Green said.
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