What Do The 2019 Internet Trends Mean for Fintech? – Part 1

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Financial Technology (FinTech) industry depends much upon the trends in the internet use. Recently, Mary Meeker and team publish the 2019 Internet Trends report. Why does it mean for the Fintech businesses? As reported by Alex Lazarow for Forbes, the report focuses on some aspects. They include the state of internet use, subscription models, advertising costs, and encryption. Of course, the Fintech businesses can get some insights from the report.

What does the 2019 internet trends mean?

The 2019 internet trends certainly affect the Fintech business. The following are some important things to learn from the Mary Meeker’s report:

Global Internet Penetration Is 50%

Five 5 ten people use internet, while 5 others don’t. What does this mean? We still have a long way to promote the internet access worldwide. The 2019 report shows that there are 3.8 billion internet users across the globe. This accounts for 50% of global penetration.

2019 internet trends 1

The fintech businesses can few this statistics in two ways. First, it is a challenge. The number of people who use the internet equals to those who do not. Driving the second half to use internet will be more challenging than doing it for the first half. Why?

  • People who do not have any access to internet service may live in less developed areas, where telecommunication infrastructure is still limited. This may need significant investment.
  • They probably do not have financial resources to buy the smart phones and internet connectivity. Improving their degree of livelihood is another challenge for the government.
  • They probably have cultural barrier to use the internet. Driving this group of people to use internet is also challenging, since you need to be able to cross the barrier.

Second, this can be an opportunity. The chance for future growth is promising. This is particularly true in Asia Pacific regions, like China.

New Channels Are Scaling Rapidly

When talking about the future of digital financial services, we cannot obey the traditional fintech startups. In response to the rapid growth, the existing platforms are scaling accordingly. Take Nubank as an example. The financial service now has more than 9 million customers. The size doubles only in a single year, as it scales rapidly.

Another example is Revolut, which now has more than 4 million users. The size scales rapidly and the number of users doubles in less than a year. Besides these two examples, other platforms develop and offer different financial products and services.

In emerging markets, e-commerce companies become the major players. Examples include Mercado Libre and Ant. The former handles more than 400 million transactions. The size doubles in only two years. Meanwhile, Ant has more than 1 billion users, and the size also doubles in 2 years. The new players offer unique channels to attract the users.

The 2019 internet trends do not stop with those two things. They do not cover trends like the coming of Super Apps, subscription models, personalized services and many more. Therefore, make sure to read more interesting things on the 2019 internet trends according to Mary Meeker’s report on the next post.

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