Disrupting Global Markets and Going for Growth | The Financial Technologist

Across the globe, businesses are facing increased pressures as they fight against rising energy prices, rampant inflation, as well as disruption and delay in supply chains. Against the backdrop of war in Ukraine, this toxic mix means that many ambitious companies are struggling to drive growth and expand to reach their full potential. Geopolitical tensions are adding to the mix, leading to shifts in global trade flows and international relations, and while the UK narrowly missed a technical recession, economies worldwide are facing similar battles. The pressures countries are faced with has led to international friction, however, there is also opportunity amongst the challenges and the FinTech and payments sector are presented with not only the opportunity, but the challenge, of disrupting global markets, facilitating international trade, and providing a backbone to our economies. Improving Global Trade As the financial services industry undergoes substantial digital transformation and digital economies develop worldwide, electronic payments are becoming increasingly important and the industry’s role in fostering inclusion is now a top priority. Disruption has inundated the traditional payments sector as FinTech providers have taken advantage of the opportunity to use emerging technologies to revolutionise the industry, focusing on customer centricity and improved efficiencies. The focus must be on driving practical solutions for businesses, in particular SMEs. As transactions are held back due to lengthy processes, businesses often take a hit as firms are exposed to sudden shifts in exchange rates making the cost of doing business globally high. In 2022, government research highlighted that the UK’s exports of goods and services totalled £815 billion, evidencing the importance of strong international relations and the ability to do trade worldwide, boosting business and economic growth. Democratisation Not only can recent disruptions within the FinTech industry promote business growth, but it can contribute to the democratisation of people worldwide, creating an ecosystem that is more financially inclusive. Access to financial services in the UK are a relative norm, however, this is not necessarily the case for those in other corners of the globe. The FinTech industry can improve integration across payments systems, allow for better access to investments, and generally improve individuals access to financial services. Tools such as big data and artificial intelligence can help firms understand customer needs to deliver customised services, opening increased opportunities for relationship building worldwide. Utilising Data Data has become one of the most valuable resources for businesses and the FinTech industry now allows for the improved analysis of data to guide business decision making and provide the best-in-class customer services. In times of economic uncertainty, data plays a critical role within organisations and businesses should now prioritise the utilisation of it to effectively forward plan and prepare for the future. Banks have a vast amount of data at their fingertips and for organisations looking to expand into new markets, the increased amount of data means that businesses can improve planning ahead of expansion plans, understanding global trends and potential threats. Data can be used to identify and mobilise new revenue streams with the help of FinTech providers, allowing businesses to better prepare themselves for success. The FinTech industry can help to enable faster payments, improve worldwide opportunities, and strengthen international ties. Emerging technologies and available data must be utilised correctly, allowing FinTech to disrupt global markets and promote international stability. Despite a challenging global economic outlook, disruption and uptake of new FinTech services is the route to long term growth and innovation. Read more articles like this in The Financial Technologist. Download your free copy here.