The Evolution Of The Fintech Scene In Malta – An Analysis By Mastercard
As the global financial landscape is rapidly growing, Fintechs emerge as trailblazers, reshaping the industry through innovation. Mastercard, a leading global technology company in the payments industry, has taken a deep dive into the future of Fintech in Malta. A detailed study was unveiled at the 16th Annual Conference organised by FinanceMalta and shed light on the nuances of Malta’s promising Fintech sector.
Aligned with the 2023 Strategy for Financial Services published by the Malta Financial Services Authority Council (MFSAC), Mastercard’s study intricately mapped Malta’s Fintech landscape. It identified crucial sectors, key players, and prevailing trends, also considering European and global trends, leading to a series of recommendations that aims to support the growth and prosperity of Malta’s Fintech sector.
An insight into the Fintech landscape of Malta
A fundamental element of the study was the detailed mapping of Malta’s Fintech sector, revealing a dynamic and rapidly evolving ecosystem. Throughout the analysis, five primary segments came to the forefront: Government, Private Funding, Financial Institutions, Regulators, and other enablers. This approach enabled Mastercard to comprehend the diverse contributions made by various stakeholders towards the sector’s growth. On top of that, Mastercard pinpointed pivotal sectors shaping Malta’s financial landscape, including Blockchain and Crypto, Payments, Neobanking, Investment and Trading, and RegTech.
The impact of global Fintech trends and developments on the financial services industry
The study also delved into global Fintech trends and developments impacting the financial services industry, while identifying strategies the public sector could employ to further support Fintech companies. The insights highlighted three main forces shaping the future: digitalisation, cutting-edge technology, and customer-centric thinking. These driving factors are expected to fuel the shift towards online and mobile banking, accompanied by the adoption of innovative technologies and services tailored to consumer preferences.
Advancements in technology have empowered financial institutions to craft sophisticated solutions, leading the race to develop Super-apps for clients. Sustainability emerged as a key driver, with 67% of consumers valuing ESG initiatives when choosing financial partners. Open Banking is revolutionising interactions with financial institutions, while Banking-as-a-Service enhances customer experience and reduces costs.
Embedded Finance is offering integrated access to financial solutions, facilitating increased convenience, while the uprising Buy Now Pay Later options, offer consumers flexibility in payments, contributing to the global e-commerce growth. In the realm of financial inclusion, Blockchain and Cryptocurrency applications are reshaping how financial institutions engage with clients and partners, and Real-Time Payments are gaining prominence, meeting the demand for immediate transaction outcomes.
Furthermore, the study explored the ways in which public sector and other entities support Fintech companies and the broader ecosystem in other European Fintech Hubs. Key pillars of the public sector’s support included Access to Capital and Expertise, Regulatory Environment and Infrastructure, Talent Attraction and Development, and International Collaborations and Promotions. Other supporting entities the study spotlighted on a European and global scale, include NGOs, private corporations, and European Agencies.
Recommendations to strengthen Malta’s Fintech future
Following the exploration of the local ecosystem and the international trends and practices, Mastercard proceeded to generate a range of recommendations aimed at further enhancing Malta’s Fintech sector. The proposed recommendations for long-term growth of the Maltese Fintech Sector are based on 4 key pillars: Governance, Support, Extroversion, and Funding. These suggestions, that also address areas for improvement identified by MFSAC, encompassed governance enhancements, collaborative initiatives between the public and private sectors, strategies to attract foreign investments, and measures to secure additional funding among others.
As Malta’s Fintech sector continues to evolve, Mastercard aims to continue standing as a beacon of innovation and a catalyst for progress, to support the nation to drive the global Fintech revolution. Mastercard’s insights combined with its customised solutions for Fintech businesses, stand as a testament to the sector’s promising growth prospects and the company’s steadfast dedication to actively shaping the future of finance within the country.
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