 
Author: Cenk Kahraman, CEO, Finance Incorporated Limited (FIL)
The fintech sector has seen significant changes in recent years, particularly in the wake of the global pandemic. You may remember the fintech boom of the early 2020s. The days of meteoric user adoption and seemingly limitless growth are behind us, according to Cenk Kahraman. “The days of easy growth in digital payments are over,” he observes. “We have seen saturation in card penetration and a slowdown in the shift from cash to digital payments. »
This slowdown is paradoxically an encouraging sign. This requires businesses to innovate beyond basic payment processing. “Five years ago, you could launch a digital wallet and see users pour in,” recalls Kahraman. “Today? You have to offer something truly unique.
This gradual approach towards a growth plateau marks a crucial turning point for the industry. As Kahraman explains: “We no longer only deal with financial transactions. Today, every payment is a data transaction, rich in information and opportunities. This shift has forced payment companies to look beyond their traditional roles and explore new avenues for growth.
The rise of value-added services has become a key strategy for fintech companies seeking to differentiate themselves in an increasingly competitive market. “Companies that can offer a suite of services beyond basic payment processing are the ones that will thrive,” says Kahraman. These services may include advanced analytics, fraud detection or personalized financial advice.
Trends shaping the fintech landscape
Looking to the immediate future, Kahraman identifies several trends shaping the fintech landscape. Chief among them is the importance of proprietary technology. “In today’s fintech world, owning your software is not just a benefit: it’s a necessity,” he says. FIL has adopted this philosophy since its inception, developing its own technology stack to remain agile and responsive to market changes.
In today’s fintech world, owning your software isn’t just a benefit: it’s a necessity
The buy now, pay later (BNPL) sector is another area that Kahraman sees as ripe for growth and innovation. “BNPL has seen interest increase in incremental waves and this remains consistent with a fundamental shift in the way consumers approach credit,” he explains. Kahraman envisions a future in which BNPL is seamlessly integrated into everyday transactions, potentially allowing customers to use it at the point of sale with a tap of their card or phone.
Open banking and financial integration represent another important trend. Kahraman is optimistic about the potential of open banking to create a more integrated financial ecosystem. “Imagine managing all your bank accounts from a single platform, regardless of which institutions you bank with,” he says. “That’s the power of open banking.” However, he acknowledges the challenges of implementing such systems, particularly in terms of how it disrupts traditional banking models.
The speculative future of fintech
As we look further into the future, Kahraman introduces the concept of “predictive finance” as an evolution of integrated finance. “Predictive finance goes beyond simply providing financial services when needed,” he explains. “It’s about anticipating these needs before the customer even realizes them. »
Kahraman paints a picture of a future where AI and data analytics work together to deliver proactive financial solutions. “Imagine your financial platform remembers an important occasion such as your birthday and suggests gift and dining options tailored to the occasion, your budget, or your long-term goals,” he says, “or optimizes your investment portfolio and trades on your behalf. These examples are already happening in fintech, but the technology is not transparent at the moment. While blockchain and other emerging technologies are often touted as the future of finance, Kahraman takes a more measured view. “Blockchain will undoubtedly play a role in the future of fintech,” he acknowledges. “But it’s just one piece of a much bigger puzzle.” The real revolution will come from how we integrate these technologies to create seamless, user-centric financial experiences.
Navigating the evolving fintech maze
As the fintech industry continues to evolve, companies face significant challenges, particularly in the regulatory area. Kahraman notes the marked differences between the regulatory environments of different regions. “Europe, while leading in many respects, is over-regulated compared to the United States and the Asia-Pacific region,” he observes. “This can stifle innovation and make it more expensive to operate.”
Despite these challenges, Kahraman sees opportunities for companies that can effectively navigate this complex landscape. “The key is to be proactive rather than reactive,” he advises. “Work with regulators, anticipate changes and build flexibility into your systems. »
Industry consolidation is another trend that Kahraman believes will shape the future of fintech. “We’re going to see a lot of mergers and acquisitions in the coming years,” he says. “Companies that can strategically acquire or partner with other companies to expand their capabilities will be well-positioned for success.” »
FIL’s vision for the future
As FIL looks to the future, Kahraman strives to position the company as an exemplary leader in fintech. “Our goal isn’t just to be successful: it’s about showing that success and ethical practices can go hand in hand,” he says.
It’s about using this technology to create a financial system that works better for everyone.
FIL’s strategy involves a mix of organic growth and strategic acquisitions. “We are always looking for opportunities to expand our capabilities,” says Kahraman. “But we don’t acquire just to grow. Every step we take is in line with our vision to create a more international, accessible, efficient and ethical financial ecosystem.
This commitment to ethical practices is at the heart of FIL’s identity. “As we grow, we have the opportunity – and responsibility – to shape the future of finance,” says Kahraman. “We want to show that it is possible to be profitable while prioritizing sustainability, inclusion and social responsibility. »
As we look to the future of fintech, it is clear that the sector is on the cusp of transformative change. From the rise of predictive finance to the challenges of navigating complex regulatory environments, companies like FIL are blazing a trail through uncharted waters.
Kahraman’s vision for the future of fintech is one of innovation tempered by accountability. “The future of finance is not just about technology,” he concludes. “It’s about using this technology to create a financial system that works better for everyone.” This is the future we are working towards at FIL.
As the fintech landscape continues to evolve, companies that can balance innovation and ethical practices, navigate regulatory challenges, and anticipate customer needs will be well-positioned to lead the industry into its next phase. With a focus on proprietary technology, strategic growth and ethical leadership, FIL is poised to play an important role in shaping that future.