Transformation in the global financial community across a variety of infrastructures, systems, and processes raises the risk of fragmentation.
January 13, 2023 | Kevin Wong- Amid competition, banking sector shows rapid growth
- Interoperability between payment systems across borders is key
- Swift experiment shows it can be done
To survive and thrive during the COVID-19 pandemic, organisations–regardless of size or mission–embraced digital transformation. According to IT research and consultancy firm Gartner, 69% of boards of directors increased their digital business initiatives, which helped speed up digital transformation ad saved many businesses from bankruptcy. Driven by the need to deliver on new and fast-changing customer expectations, this trend in digital investment can only continue across industries, including the financial services sector.
Disruptive technologies have created a new level playing field for fintechs, driving innovations that are transforming the financial services industry, for instance, chipping off services around digital payments that were traditionally offered by financial institutions.
Amid competition, banking sector shows rapid growth
Despite their success, however, the fintech sector remains small in comparison to the banking sector. While global fintech activity reached around $210 billion in 2021, the size of global financial services in the same year was $23,320 billion. The latter is expected to grow to $25,839 billion in 2022 and up to $37,343 billion in 2026, or at a compound annual growth rate (CAGR) of 9.6%.
In the face of increasing fintech competition, the financial services industry continues to demonstrate impeccable resilience, undergoing rapid digitalisation and modernisation through initiatives such as cloud migration, upgrading or rep...
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Keywords:SWIFT, Interoparabilty, Digitalisation, Technology, Fintech, AI
