Wealth trends: How technology will disrupt the market

The world of finance is undergoing a revolution, with technology at its core. Suzanne Shichi, Chairman and Co-founder of FinTech Circle, and Sonya Kuhnel, Co-Founder of Bitcoin Events, joined CNBC Africa to delve into the benefits and threats technology poses to wealth and asset management, as well as the rise of cryptocurrency, particularly Bitcoin. The FinTech revolution is a global movement aimed at reshaping banking and financial services for the betterment of society. It seeks to ensure widespread access to finance and banking services, creating a more equitable distribution of wealth. The trend towards FinTech investments has seen numerous startups emerge with innovative ideas aimed at disrupting traditional banking models and collaborating with established institutions to enhance efficiency and customer focus. A notable development in this space is the launch of the first FinTech Academy in Africa in partnership with Citi. The enthusiasm for FinTech innovation in Africa, particularly in South Africa, has been impressive, showcasing the continent's potential to lead in driving global FinTech inclusion. The popularity of blockchain technology and Bitcoin has surged, with many investors eyeing them for secure returns. However, there remains confusion, especially among corporate entities, on how these technologies can streamline processes. Shichi clarifies that Bitcoin serves as digital money for value transfer, enabling anyone to participate in a decentralized and distributed system. The open and secure nature of blockchain technology holds promise for enhancing financial inclusion, particularly in regions like Africa. While FinTech's mission is to promote financial inclusion, there has been resistance and fear surrounding its adoption globally, primarily from incumbent financial players. Large banks initially viewed the influx of FinTech startups as a threat to their market share. However, they now recognize the greater challenge posed by tech giants like Apple, Amazon, and Google, which are integrating FinTech innovations into their strategies. Collaborating with FinTech startups can position established players to compete effectively in the long term. The transformative power of FinTech lies in cutting out intermediaries and needless fees in financial transactions, resulting in more value for all parties involved. This efficiency has far-reaching implications, especially in reducing costs associated with cross-border transactions and ensuring that the end beneficiaries receive more of the transferred funds. Africa's strong entrepreneurial spirit and educational foundation place the continent at the forefront of driving financial inclusion. Shichi emphasized that Africa has the potential to lead the charge in FinTech innovation, as evidenced by the collaborative effort that led to the publication of 'The FinTech Book,' the first crowd-sourced book on FinTech trends. The book addresses key trends in financial inclusion and enterprise innovation, underscoring the need for large institutions to embrace new technologies and foster a culture of openness to drive scalable FinTech solutions. The establishment of the FinTech Academy represents a pivotal step in advancing understanding and knowledge of FinTech trends, further empowering individuals and organizations to navigate the evolving landscape of financial technology. As Africa continues to embrace and champion FinTech innovation, the future of wealth and asset management is poised for transformative growth, driven by technological disruption and inclusive financial practices.