The benefits of successful digital transformation can be enormous for national economies and companies in today’s hyper-competitive global markets. Against the backdrop of a global health and economic crisis, no company – and no government, for that matter – can afford to ignore the opportunities that new technology offers to improve day-to-day services. Financial technology (FinTech) is a major digital transformation force, challenging traditional structures and improving efficiency across the financial services value chain.
In this report, we present our analysis of five key lessons for companies developing disruptive technologies in emerging markets today, based on interviews with industry leaders:
- Avoid Surprises: Invest in Policy Capital. Understanding policy, politics and regulations grants competitive and commercial advantage to businesses.
- Track Enabling Regulation. FinTechs need to advocate for the regulatory tools that will allow them to flourish: cross-border data flows, enabling privacy regimes, data classification and portability, regulatory sandboxes and “test and learn” approaches.
- Develop Capacity to Counter Cybersecurity Risks. Capacity-building initiatives and collaboration between the public and private sectors builds resilience and safeguards the financial services industry.
- Build Partnerships to Thrive. Incumbent financial institutions working alongside FinTech trailblazers guarantees robust partnerships that will advance commercial and regulatory goals.
- Capitalize on COVID-19 Digital Recovery. Increased attention to digital financial solutions in the context of COVID-19 has created momentum for FinTechs and gives them a seat in policy discussions.