From the simplicities of connecting to friends and family online, to internet shopping and bill payment facilities, technology is taking over our personal and commercial worlds. The provision of services and the facilitation of the payment for such services electronically has become a way of life, with a shift in the way banking is conducted quickly becoming even more electronic in nature. However, there is a lot more to the Financial Technology (“Fintech”) industry. Malta’s established and booming financial services centre, coupled with its growing IT capabilities, ensure that the Island boasts a pool of untapped opportunities for Fintech companies. The Island offers competitive advantages to the Fintech world including flexible yet robust regulation, attractive incentives for FDI technology inflows and a pool of both local and international industry experts, as well as a government backed digital strategy. 

Fintech connects clients directly to the markets, eliminating the need for middlemen. ‘Robo advisor’ websites are employing traditional algorithm-based portfolio management services to create low-cost online portfolios that eliminate involvement of a human advisor, as well as connect the financial market to the end user. A number of online payment services providers (PSPs) have been incorporated in Malta, making payments and online purchases accessible through different media, without accessing your bank.

With Malta’s rising success in the online financial services sphere, ranging from Forex companies, payment service providers and electronic money institutions, the MFSA and service providers today boast robust knowledge in this area, contributing to the transformation of Malta into a Fintech jurisdiction of choice.

These customer friendly technologies are appealing to younger, more tech-savvy users, who expect accessibility and solutions instantly.  Additionally, these solutions also reduce costs in personnel and intermediaries, making wealth management, online payments and finance affordable and accessible to a broader market. In order to stay ahead of the Fintech game, the traditional financial service platforms needs to seek partnerships with alternative Fintech platforms, or begin to invest in their own in-house solutions. With the world of Fintech changing traditions, financial service providers must ensure they invest in technologies to remain relevant.