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Progress through the update

FinTech — digital trend

The development of technology largely determines the ongoing global transformation of financial markets.

Regulators’ approaches to the use of new technologies, openness to the emergence of alternative business models and new players, and participation in building infrastructure form differences in the scenarios for the evolution of the financial sector in different countries.

Market Participants’ Opinions

Based on the results of in-depth interviews with industry leaders and experts and an open survey of market participants, priority areas for the development of financial technologies and potential initiatives were identified to accelerate the high-tech development of a competitive and secure next-generation digital financial market.

The main priorities for the development of financial technologies in the opinion of market participants:
• end-to-end digitalization of financial services, increasing the availability and quality of services
• ensuring safety and reducing the risks of using new technologies
• development of digital platforms and mechanisms for accessing data with equal access for financial market participants
• development of competition and regulation of ecosystems
• creating conditions to support the development of innovations
• digitalization of interaction with public authorities and the regulator
• involvement of the commercial sector in the construction and development of infrastructure.

Expectations of financial market participants from the general market infrastructure:
• further development of remote identification
• expanding the capabilities of the Digital Profile as a mechanism for accessing data of individuals and legal entities
• building a trusted environment for data exchange using the Open API
• implementation of cloud-based electronic signature
• continued development of payment mechanisms and services
• the emergence of new industry solutions for end-to-end digitalization


Financial markets around the world are undergoing massive changes driven by new technologies, transforming consumer behavior, and regulatory initiatives.

According to the Accenture Disruptability Index research, all sectors of the global economy develop within a similar life cycle, and each of the industries goes through four stages.

After the stages of confirmation of viability and stability, the need for change gradually matures, and the industries enter the stage of vulnerability, and then there is a rapid restructuring.

After that, the market landscape is gradually stabilizing around new leaders and new business models.

International financial services markets have been turbulent over the past decade, characterized by declining profitability, looming structural inefficiencies with limited disruptive innovation, and high barriers to entry.

Since 2019, global financial markets have begun the transition to the stage of “cardinal restructuring” of the industry. At this stage, previously strong barriers are eroded, and alternative players attack the weak points of traditional participants.

Insurance and banking, as well as retail and transportation services, are now going through this stage of transformation, which telecoms and media companies went through a few years ago. In more dynamic markets, large tech companies, neobanks, alternative payment providers, and fintech startups are beginning to gradually regain ground from traditional banks.

Modern directions

New business models are replacing the existing models of traditional market participants.

Some banks will continue to fight for customer attention, turning into digital personal managers. The evolution of this model is to go beyond the industry and become an ecosystem player. This can be achieved through new partnerships and creating open ecosystems or buying other players and independently developing products and services from within (closed ecosystem).

The creation of closed ecosystems does not lead to the development of competition and cooperation in the market.

Other players are finding their own unique niche by specializing in individual products and becoming digital killers.

Some market participants are fading into the background, turning into providers of financial products and offering their services to other players as a service.

At the same time, operators of open platforms are developing as aggregators of financial products and services. Unlike ecosystem players, they provide partners with access to the platform without distributing their own products.

At the current stage, three macro-scenarios of development can be distinguished in the world.

  1. Shift in value. Transition to the market of digital platforms and large non-financial ecosystems, where traditional financial players are left with a limited role for financial service providers. As an example — China with the dominance of BigTech companies.
  2. Open market. Competition in the industry is intensifying due to the emergence of new fintech services and business models. The UK and European countries follow this path thanks to the introduction of Open Banking and PSD2 (Payment Services Directive).
  3. The ecosystem market (evolutionary / protectionist scenario). The dominance of the largest financial players is growing, building their own ecosystems around the financial business, for example, in the markets of Australia and Canada

The identified priorities are aimed at achieving the following goals:
– ensuring the quality and availability of financial services, including in digital format
– reduction of costs and risks in the financial market, including risks associated with the use of new financial technologies
– development of competition and innovation in the financial market

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FinTech —  digital trend was originally published in The Capital on Medium, where people are continuing the conversation by highlighting and responding to this story.

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