It should be noted that due to the lack of a unified approach to the definition of "FinTech", it is often challenging to identify FinTech products from among the many other financial services and IT solutions.
In this study, we use the following definition: FinTech is an array of financial services that are based on advanced hardware and software, involve the use of computer-based or mobile application and/or involve innovative processes and business models in the finance industry.
Map's segmentation was done similarly to FinTech maps of o other countries but taking into account Belarus' specificity. For example, many Belarusian IT companies produce products, i.a. FinTech, for foreign jurisdictions. These technological solutions are not presented on the Belarusian market, however, they might be quite popular in other countries. Also, it is not always possible to obtain information about projects if a company develops a product for a specific client (e.g. a bank) and that does not involve widespread promotion of that product.
Therefore we have dedicated a separate segment "Software developers for FinTech" to companies that create technological solutions for the financial market on demand. In this segment, you will find such large companies as IBA Group, EPAM, SoftClub, ID Finance, etc. Also, this segment includes IT companies that were created directly by banks (e.g. BelVEB Technologies, System Technologies)
Looking at the map's main segments, one can note that there is an active development of the FinTech market in the field of blockchain technologies, including crypto exchanges, and other investment-related online platforms.
Here we should highlight such projects as cryptocurrency exchange Currency.com, the Banking Information Network of the Blockchain in the Republic of Belarus and a multiple currency wallet Multy.io.
The popularity of blockchain projects is understandable and is largely because of two factors. Firstly, business and public in general has shown a strong interest in digital money transactions. Secondly, the Belarusian government has adopted legislation that regulates the cryptocurrency market and other digital tokens.
Another well-developed area in Belarusian FinTech is payment services and transfers. In this regard, Belarus isn't unique. Active introduction of information technologies in the area of payments is taking place in many countries.This phenomenon is widely attributed to the presence of a large number of potential users and a relatively low cost of the introduction of technology.
It should be emphasized that the penetration of FinTech in the area of payments in a number of Asian and African countries is caused by insufficient development of the traditional banking system. At the same time, in countries to which the Republic of Belarus belongs, with a strong banking sector, the popularity of FinTech solutions in the payment sector is explained by the convenience and, in some cases, the affordability.
There are P2P lending platforms for donation and rewards-based crowdfunding in Belarus. As to Big Data and scoring projects they focus primarily on foreign jurisdictions. In contrast, areas such as crowdinvesting, social trading, and InsureTech has not taken off in the Belarusian market.
While legislative restrictions are an obstacle to the development of investment crowdfunding, it is suggested that investors and developers of FinTech products should pay attention to the InsureTech area. That's because the insurance industry in many countries of the world is becoming more and more interesting in terms of creating FinTech solutions. For example, the use of telematics devices and modern technologies, as well as work with Big Data encourage the development of customized solutions. This enables insurance companies to have a more predictable income, and their customers receive more comfortable insurance services that take into account the needs and risks of a particular insurer.
This FinTech map is the result of the first study of the FinTech market of the Republic of Belarus. We will continue to monitor and analyze the Belarusian FinTech market. The map will be periodically updated.
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