The importance of innovation and collaboration in the growth of Fintech in Malta

Mastercard has taken a leading role in fostering the expansion of the Fintech scene in Malta, as recently demonstrated at the 16th Annual Conference organized by FinanceMalta.

The analysis presented there, not only scrutinizes the present condition of Malta's financial industry but also reveals a range of global developments that are reshaping the financial sector and identifies a series of strategic measures that have the potential to expedite the growth of Fintech in Malta.

“We aspire to support and further cultivate an environment that not only embraces Fintech companies in Malta, but also propels them forward. Together with existing initiatives, the outcomes of the study are intended to unite the relevant stakeholders of the fintech ecosystem, create fertile ground for collaboration, spark innovative endeavours, and pave the path for the long-term success of this sector in Malta. We want to believe this initiative constitutes a testament to our commitment to fostering growth and innovation within the realm of the Fintech ecosystem and reflects our dedication to nurturing the potential of this dynamic industry in Malta” said Panagiotis Polydoros, Mastercard’s Country Manager for Greece, Cyprus and Malta.

An insight into Malta’s Fintech landscape

A fundamental element of the study was the detailed mapping of Malta's Fintech sector, revealing a dynamic and rapidly evolving narrative.

Throughout the analysis, five primary segments came to the forefront: Government, Private Funding, Financial Institutions, Regulators, and other enablers.

This approach helped Mastercard understand the various ways that different stakeholders contribute to the growth of the sector.

Beyond this supportive ecosystem, Mastercard pinpointed pivotal sectors shaping Malta's financial landscape, including Blockchain and Crypto, Payments, Neobanking, Investment and Trading, and RegTech.

Global trends and practices

The subsequent phase of the study delved into global Fintech trends and developments impacting the financial services industry, along with strategies the public sector could employ to further support Fintech companies.

The insights highlighted three central forces shaping the future: Digitalization, Cutting-edge technology, and Customer-centric thinking.

These driving factors are expected to fuel the shift toward online and mobile banking, accompanied by the adoption of innovative technologies and services tailored to consumer preferences.

The recent study identified key trends that are already affecting the financial industry, shaping the future of Fintech, both globally and in Malta.

Specifically, the rise of trends such as the transition from Fintechs to Super-apps, Banking-as-a-Service (BaaS), Open Banking, Blockchain & Cryptocurrencies, Real-Time payments, Embedded Finance, Sustainability and Buy Now, Pay Later (BNPL) is poised to transform the financial services landscape.

However, industry trends are not the only factor that matters.

The public sector also plays a vital role in supporting fintech innovation and growth.

Collaborative efforts between the public and private sectors such as regulatory initiatives and incentives, could contribute to the establishment of an environment conducive to innovation and growth.

Building on those insights and trends, Mastercard also formulated a range of recommendations.

These suggestions, which also address areas for improvement identified by MFSAC, encompass governance enhancements, collaborative initiatives between the public and private sectors, strategies to attract foreign investments, and measures to secure additional funding among others.

Nurturing Fintechs for success

Mastercard's commitment to supporting Fintechs goes beyond this study and is in fact manifested through a range of initiatives and products.

The Fintech Forum Event Series connects key players, sparking collaborations essential for Fintech evolution.

Mastercard Engage promotes solutions, providing Fintechs access to APIs and tech partners.

Fintech Express aids innovators in scaling their businesses, while the intensive StartPath program facilitates rapid scaling through partnerships and expertise.

In the vibrant landscape of Malta's Fintech sector, all these efforts reinforce Mastercard’s commitment for fostering innovation, collaboration, and sustainable growth, ensuring that the nation's Fintech future is bright, innovative, and globally competitive.