In the past decade, the European Union (EU) has witnessed a remarkable rise in financial technology, known as fintech. Fintech has revolutionized traditional banking and financial services by using technology to improve efficiency, accessibility and innovation. In this blog, we will look at the remarkable growth of fintech in the EU over the last ten years, exploring the key trends, transforming factors and, ultimately, the benefits for consumers and businesses.
Regulatory progress paves the way for development! The EU is committed to fostering innovation in the financial sector, which is reflected in its regulatory framework. The introduction of the Revised Payment Services Directive (PSD2) in 2018 was instrumental in driving the growth of fintech. PSD2 promotes open banking, allowing third-party service providers to access banking data with the customer's consent. This has led to the emergence of innovative payment solutions, improved competition and improved user experience.
In addition, the EU is witnessing a rapid transformation of the payment system. Digital payment methods are increasingly replacing traditional payment methods. Wireless payments, mobile wallets, and various person-to-person transfers are becoming increasingly popular, providing consumers with more convenient and secure ways to manage their finances. This is where Callidus Pay comes into play. We have created such a system where the transfer of money between Callidus users is completely free! Imagine if someone told you 5, 10, or 20 years ago that a money transfer would cost 0 euros regardless of the amount you want to send or receive, you wouldn't believe them.
The enormous increase in platforms for online loans and so-called crowdfunding, i.e. financing through the masses. Fintech has also positively disrupted the EU lending market. Online lending platforms and peer-to-peer lending networks have emerged as viable alternatives to traditional banks. These platforms use advanced algorithms and data analytics to quickly assess creditworthiness, making loans more accessible to individuals and small businesses. At the same time, platforms for crowdfunding, i.e. crowdfunding are gaining in importance, enabling entrepreneurs to raise capital by connecting directly with investors in a fast and efficient way.
Fintech has played a key role in promoting financial inclusion across the EU. Traditional banking services often cannot meet the needs of people who have limited access to physical branches or no previous credit history. However, fintech has bridged the gap by providing digital banking solutions, mobile payment options, and microfinance services. These innovations enable underserved populations to access financial services and participate in the formal economy. Also, another area where Callidus Pay dominates. The Callidus Pay platform is available in 10+ languages and is accessible to anyone who has
a mobile phone, which makes it the most affordable fintech solution on the market. We do not perform any credit checks during registration, all a user needs to register is to be at least 18 years old, have a residence in the EU, and pass a KYC check.
Collegial approach: Banks and fintech startups... Instead of viewing fintech as a threat, many traditional banks in the EU have adopted a collegial approach. Recognizing the potential of fintech solutions, banks have partnered with startups, invested in their own digital transformation, or created internal innovation centers. This collaboration has fostered an ecosystem of co-creation, where fintech startups can leverage banks' existing infrastructure, user base, and regulatory compliance, while banks benefit from the agility and technological advancements that fintech provides.
The conclusion of the whole story is that the fintech revolution in the European Union during the last ten years has been exceptional. Regulatory progress, innovative payment solutions, online lending platforms, and increased financial inclusion are just some of the outstanding results. Fintech has not only disrupted traditional banking, but it has also created new opportunities, improved customer experience, and fueled economic growth. Going forward, the EU's commitment to fostering innovation and collaboration is likely to drive further progress in fintech, transforming the financial landscape for years to come.
Why not take advantage of this opportunity?
Download the Callidus Pay application, register your account in just a few minutes, and catch up with the times, be your own personal banker!