Global Perspective: Tech solutions are driving the evolution of the sector landscape

Once reserved for ambitious start-ups and industry- leading tech operators, financial technology (fintech) has more recently caught the attention of major private sector firms and government planners alike, becoming a regular feature in budget speeches and strategic development plans. As fintech progressively plays a larger part in the lives of consumers, investors have quickly come to recognise its potential as a growth industry. The tech-focused Janus Henderson Global Technology Fund, for example, has expanded by more than 160% since February 2013, and grew by some 30% over the course of 2017.

Fintech is rapidly advancing across an array of global markets. While the concept was pioneered in developed countries, the fluidity of international capital and the border-less nature of technology adoption means emerging markets are catching up quickly. As competition mounts between regulatory jurisdictions, the coming years are likely to see fintech innovations across a widening geographic front.

However, the rise of fintech will inevitably be attended by unprecedented challenges. As large tech groups move into the banking arena, traditional lenders will face more difficulty maintaining market share. Regulators, meanwhile, are being compelled to adopt a flexible stance with regard to fintech activity to attract investment, but must also maintain their prudential standards, or risk reputational damage. With high levels of investment and a rapidly evolving landscape, fintech offers real possibilities for growth. The uptake of fintech by the world’s banks, however, is likely to follow an unpredictable trajectory.

Read the full Global Perspective in The Report: Tunisia 2018