 
Author: Cenk Kahraman, CEO, Finance Incorporated Limited (FIL)
The fintech industry has undergone significant changes in recent years, particularly in the wake of the global pandemic. You might recall the fintech boom of the early 2020s. Those days of skyrocketing 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 a saturation in card penetration and a slowdown in the shift from cash to digital payments.”
This slowdown is, paradoxically, an encouraging sign. It is forcing companies to innovate beyond basic payment processing. “Five years ago, you could launch a digital wallet and watch the users pour in,” Kahraman recalls. “Today? You need to offer something truly unique.”
This gradual approach to a plateau in growth marks a crucial turning point for the industry. As Kahraman explains, “We are no longer just processing financial transactions. Today, every payment is a data transaction, rich with insights 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,” Kahraman asserts. These services might include advanced analytics, fraud detection, or personalised financial advice.
Trends shaping the fintech landscape
Looking to the immediate future, Kahraman identifies several trends that are shaping the fintech landscape. Chief among these is the importance of proprietary technology. “In today’s fintech world, owning your software isn’t just an advantage – it is a necessity,” he states. FIL has embraced this philosophy from 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 an advantage – it is a necessity
The Buy Now, Pay Later (BNPL) sector is another area Kahraman sees as ripe for growth and innovation. “BNPL has seen interest rise in gradual waves and it remains true to a fundamental shift in how consumers approach credit,” he explains. Kahraman envisions a future where BNPL is seamlessly integrated into everyday transactions, potentially allowing customers to use it at point-of-sale with a simple tap of their card or phone.
Open banking and financial integration represent another significant 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 is the power of open banking.” However, he acknowledges the challenges in implementing such systems, particularly in terms of the way this upsets legacy 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 embedded finance. “Predictive finance goes beyond just offering financial services at the point of need,” he explains. “It is about anticipating those needs before the customer even realises them.”
Kahraman paints a picture of a future where AI and data analytics work together to offer proactive financial solutions. “Imagine your financial platform remembering an important occasion such as your anniversary and suggesting gift and restaurant options that suit the occasion, your budget, or your long-term goals,” he says, “or optimising your investment portfolio and trading on your behalf. These examples are already happening in fintech, but the technology is not seamless 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 shaping the future of fintech,” he acknowledges. “But it is just one piece of a much larger 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 sphere. Kahraman notes the stark differences between regulatory environments in different regions. “Europe, while a leader in many ways, is over-regulated compared to the US and Asia-Pacific,” he observes. “This can stifle innovation and make it more costly to operate.”
Despite these challenges, Kahraman sees opportunities for companies that can navigate this complex landscape effectively. “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 Kahraman predicts 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 others to expand their capabilities will be well-positioned for success.”
FIL’s vision for the future
As FIL looks to the future, Kahraman is focused on positioning the company as an exemplary fintech leader. “Our goal isn’t just to be successful – it is to show that success and ethical practices can go hand in hand,” he states.
It is about using that 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,” Kahraman explains. “But we are not just acquiring for the sake of growth. Every move we make is aligned with our vision of creating a more international, accessible, efficient, and ethical financial ecosystem.”
This commitment to ethical practices is at the core of FIL’s identity. “As we grow, we have an opportunity – and a responsibility – to shape the future of finance,” Kahraman asserts. “We want to show that it is possible to be profitable while also prioritising sustainability, inclusivity and social responsibility.”
As we look to the future of fintech, it is clear that the industry 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 charting a course through unexplored waters.
Kahraman’s vision for the future of fintech is one of innovation tempered with responsibility. “The future of finance isn’t just about technology,” he concludes. “It is about using that technology to create a financial system that works better for everyone. That’s the future we are working towards at FIL.”
As the fintech landscape continues to evolve, companies that can balance innovation with ethical practices, navigate regulatory challenges, and anticipate customer needs will be well-positioned to lead the industry into its next phase. With its focus on proprietary technology, strategic growth, and ethical leadership, FIL is poised to play a significant role in shaping that future.
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