The past year has not been easy — many countries are still recovering after the COVID-19 pandemic while another crisis is on the horizon. The cost of living is increasing rapidly, with inflation rates hitting record numbers. The worst part is that this economic crisis affects every industry.
Currently, tech giants are firing their staff to cut costs amid the recession. Does this mean a grim feature for tech companies? While it may appear so, the situation will become easier next year as this market is remarkably resilient. From a trading app to a passive income app, technology is advancing alongside economic developments, and witnessing it is exciting.
Here are some of the top trends you can look out for in fintech for the upcoming year.
Trend 1: Alternative Financing Opportunities Will Rise
2020 brought many challenges for companies looking to finance their operations through traditional banking institutions. The global trade financing gap is widening even if banks claim not to have reduced financing options for their customers. That’s why many businesses are turning to alternative financing options.
In recent years, alternative financing has become increasingly popular for businesses looking to finance their operations. There are several reasons for this. First, traditional banking institutions have become increasingly reluctant to finance businesses, especially small businesses. This phenomenon has led to a widening of the global trade financing gap. With no choice but to rely on savings or starting capital, small and medium businesses sought alternative financing firms to help them with expenses.
Second, alternative financing options often offer more flexible terms and conditions than traditional bank loans. It can be helpful for businesses that are struggling to obtain financing from conventional sources. Moreover, many companies prefer alternative financing because of its flexibility and fast response to the changing environment.
Finally, alternative financiers are typically more willing to work with businesses with bad credit or no collateral. It makes alternative financing an attractive option for businesses that may not qualify for traditional bank loans. Many fintech companies that offer alternative financing complete requests remotely and quickly. As the demand increases with the economic crisis hurting small businesses, fintech alternative financing opportunities will be more prominent.
Trend 2: “Unicorn” Status Will Decline In Prestige
A unicorn company is a startup with over $1 billion in valuation. Over the past few years, there has been an incredible rise in unicorn companies, particularly in the US. It is due to various factors, such as the proliferation of venture capital and the advent of new technologies, that have made it easier for startups to scale quickly. As a result of this increase in unicorn companies, the status has become less valuable for companies in developed markets.
Notably, investors are more likely to invest in a company headquartered in a developing country or a fintech hub, where there is more potential for growth. However, the status of unicorns should continue to be an essential building block for startups in emerging markets and less mature fintech hubs.
Consequently, these companies often face more significant challenges when raising capital due to high risk and uncertainty about future profitability. That’s why showing that they have achieved unicorn status can help them overcome these hurdles and attract investors.
Trend 3: Abundance Of Options To Build Passive Income Streams
As with any financial crisis, advisors suggest their clients do two things. Firstly, they should diversify their income portfolio. That means relying on several different revenue streams, from full-time jobs, freelancing, investments, and more. Secondly, people should aim to earn as much passive income as possible. It helps to employ your own money to work for you instead of doing any active work yourself.
With technological advancements making our lives easier, we’ve more options to make money in different ways. There are freelancing platforms, survey sites, and passive income apps like Honeygain. The latter is a free Internet-sharing app that lets users rent their bandwidth in exchange for money. You’ll get $3 for 10GB of traffic you share with the Honeygain network.
You can boost your earnings by participating in social media contests, turning on special features, and referring friends. Your referrals will get $5 for free upon signing up, and you’ll get a permanent bonus of 10%, equal to your referral’s daily earnings.
Moreover, Honeygain encrypts your bandwidth and follows a strict security protocol to ensure the safe sharing of your Internet. It’s an excellent way to earn extra cash and cover daily expenses. Additionally, Honeygain is an exciting technology that will likely increase in popularity next year.
Prepare For Next Year
If you’re interested in the upcoming fintech trends, you should pay attention to alternative financing opportunities, unicorn companies, and digital passive income streams, especially applications. With the current situation, these three trends will likely pick up media attention and attract record numbers of users.