While China is emerging as global leader of the industry, Sub-Saharan Africa is making a quantum leap in mobile money innovation, and the increase in money transfers is driving the growth of the Indian market growth, Europe lack of a unified focus when it comes to fintech, the World Bank claim, due to “important regional differences in the adoption of digital finance.”
Issues
Main reasons for this, experts point out, include “the prevalence of cash-based payments, account ownership and usage, and savings and credit in the region.”
Moreover, “a considerable gap also exists between the United Kingdom and the rest of Europe—that country being significantly ahead of the rest of Europe both in terms of fintech innovation and investment.”
Opportunities
Hence, what to do? Analysts point out that there are a few opportunities for Europe to take a stance in the global fintech race.
For example, they argue, “the potential is high for fintech to improve access to, and usage of, payments and other financial services in Europe,” thanks to “high mobile phone and internet access.”
Last but not least, “the modernization of the EU’s data policy frameworks has helped to clarify rights and obligations in the data economy,” so representing a competitive advantage if effectively adopted by all the countries of the area.
Also a leading bank like Goldman Sachs agrees on the fact that thanks to a favorable regulatory landscape Europe has quickly become a fertile ground for fintechs. However, issues have to be properly addressed. Find out more in the video below.
Oliver* 