Fintech will determine which countries will become powerhouse economies of the next decade, amid an intensifying tech war that will change the future said the CEO of a leading financial advisory.
“It’s not the war that might first come to mind, but rather it’s an epic tech and innovation race,” said Nigel Green, deVere Group’s chief executive and founder, following his appointment as an adviser to Thailand’s National Innovation Agency (NIA).
The NIA has a focus on fostering strategic innovation, boosting innovation investment, and nurturing the innovation ecosystem to enhance national productivity, economic restructuring, social development and global competitiveness
“Faced with a wide range of crises and challenges, particularly social and political disruption, public health emergencies, climate change, and economic turmoil, nations around the world are increasingly focused on stamping their dominance politically, culturally and economically,” explained Green.
“The winners in the battle for this influence will come down to which country has superior technology.
“The better tech, the more sophisticated the military; the wider and more effective the political, social and cultural influence; and the more robust, adaptable and future-proofed the economy,” he said.
Soft war for fintech domination
With the blistering pace of the digitalisation of everything in our lives, said Green, including the way we manage, use and access money, “it’s a given” that most major countries are already engaged in a “soft war for fintech [financial technology] dominance.”
It’s estimated that global investment in fintech peaked at $91.5 bln in 2021, and the countries in which the most was invested are “likely to become more successful and competitive” over the next decade.
“The financial sector is currently undergoing the most profound transformation in history. What is driving this industry evolution? Fintech, which is the use of technology to deliver financial services to consumers,” Green added.
“It’s redefining and reshaping in fundamental ways, in areas including mobile banking, saving and investment apps, e-payments, peer-to-peer lending , cryptocurrencies, robo-advisors and crowdfunding, amongst others.”
How can economies benefit from fintech?
“It can boost wider innovation and competition across the economy, while managing the risks. It can also broaden regulatory supervision to enable authorities to foster a safe, efficient, and inclusive financial system, which will help shore-up the economy.
“In addition, it can help proactively shape markets to encourage modernisation, competition and productivity within the financial services sector.
“Plus, it can help bridge the gap between public and private sectors which will create a more agile economy and help strong cross-border coordination and sharing of information and best practices.”
For these reasons, economies with a strong fintech industry will prevail.
Nigel Green concluded that, “without strong finances and financial industry, a country has limited influence. The future of finance is technology. As such, fintech will determine the powerhouse economies of the next decade.”