Leading the digital banking charge
The race is on, and fintechs are surging forward. Boston Consulting Group’s latest Global Payment Report, Fortune Favours the Bold, makes it clear – banks must evolveor risk being left behind.
With fintechs blazing a trail in the payments sector, banks now need to look beyond their comfort zones and aim to capture at least 50 per cent of new growth from areas outside their core business.
The report highlights the urgency for innovation, projecting that global payments revenue growth will halve by 2028, with annual growth rates dropping from nine per cent to just five per cent. North America and Europe, in particular, are set for the sharpest slowdowns, with projected growth of only three per cent each year.
The findings also show a shift in investor priorities: 33 per cent of the payments industry’s investor base is now value-focused, up from 26 per cent in 2021. As fintechs outpace traditional players, technological modernisation has become essential to keep up with the rapidly changing payments infrastructure.
In this issue, we spotlight how challenger banks are responding to these pressures. These digital-first players are adapting through strategic partnerships, innovative technologies and a customer-centric approach, all essential for scaling sustainably.
From tackling new regulatory requirements to expanding their service offerings, we delve into the strategies helping challenger banks maintain their competitive edge.
We also explore the rise of open finance, which, while promising, has seen slower adoption than
“From tackling new regulatory requirements to expanding their service offerings, we delve into the strategies helping challenger banks maintain their competitive edge”
expected. Aimed at fostering a more connected financial ecosystem by sharing a broader scope of financial data, open finance faces significant hurdles, such as privacy concerns and the need for robust regulatory frameworks. Our experts weigh in on what it will take for open finance to reach its full potential and how the industry can overcome these barriers.
Additionally, we bring you an inside look at Sunshine+Kittens, the new kids’ money app blending gamified learning with financial literacy and reveal how MTN-Halan is on a mission to transform mobile money solutions across emerging markets.
We also delve into how myTu is using fintech to address the banking needs of migrants. By providing essential banking services tailored for individuals navigating new financial landscapes, myTu aims to bridge gaps in access to accounts, remittances and savings tools.
As we move into the final stretch of the year, it’s the perfect time for reflection and forward planning. Over the coming weeks, we will be taking stock of what’s been achieved and consider the road ahead. We invite industry leaders and innovators to share their key takeaways from 2024 and their predictions for the fintech landscape in 2025.
Claire Woffenden, editor in chief,
The Fintech Times
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