Fintech in 2021: Five Trends to Watch (Clifford Chance Briefing).
The COVID-19 crisis has brought technology use to the fore in the financial sector and beyond, with businesses seeing two or three years’ expected progress compressed into two or three months last year. The pandemic’s impact on fintech businesses and regulatory agendas is ongoing, coupled with pressure from both consumers and businesses to get tech regulation right. What does this mean for global fintech in 2021?
From sustainable fintech and CBDC developments to greater scrutiny of data and increased antitrust enforcement, Clifford Chance predicts five developments for key fintech areas including AI, data, payments and crypto.
1. Evolving risks for AI and data use: further guidance from global regulators: algo decision taking, use of personal data
2. Payments: protection in case of insolvency of payment services firms, creation of new BigTech regulators (EU DORA for example)
3. Operational Resilience: of utmost importance in digital services and increased use of third-party providers (tackled by EU DORA)
4. Crypto Assets and Central Bank Digital Money (CBDC) developments: AML issues, EU MiCA (Markets in Crypto-assets), potential initiatives of issuance of CBDC
5. Sustainable fintechs and link to ESG, in the context of COP26 in November, greater intersection between ESG and fintech, and questions around sustainable fintech issues