✨ FinTech Trends for 2022Published by Pavel Nakonechnyy on (updated: ) in Leadership and Soft Skills. Tags: FinTech.
Do you want to make a career in FinTech? Or do you already work there? Then you’ll need to know the latest FinTech trends.
I have worked as a Business Analyst in Banking for over a year. That’s the list of Fintech trends I find the most important.
FinTech refers to software, mobile applications, and other technologies created to improve and automate traditional forms of finance for businesses and consumers alike. FinTech includes everything from straightforward mobile payment apps to complex blockchain networks housing encrypted transactions.
Fintech started its roots in the 50s when banks introduced early credit cards that eliminated the need for consumers to carry physical currency in their day-to-day lives. This fintech revolution has led to the mobile payment apps, blockchain networks, and social media-housed payment options we regularly use today.
Digital banking continues to grow. Digital banking means delivering banking services over the internet: either online banking via Web or mobile banking. Many consumers already manage their money, request and pay loans, and purchase insurance through digital-first banks. FDIC reported that 34% of Americans used mobile banking as their primary way of accessing their accounts in 2019. The digital banking market will grow at a compound annual growth rate (CAGR) of 11.5% by 2026.
Blockchain technology allows for decentralized transactions without involving a government or other third-party. Blockchain technology has been developing for years, and 2022 is likely to continue this trend as more industries turn to advanced data encryption. Smart Contracts and Tokens play a role.
Artificial Intelligence (AI) and Machine Learning (ML) technologies have changed how fintech companies scale and redefined the services they offer to clients. AI and ML can reduce operational costs, increase the value provided to clients, and detect fraud. These technologies become more affordable and accessible and will play a major role in fintech’s continued evolution — especially as more brick-and-mortar banks go digital.
Fintech regulation will intensify because of the blockchain. Countries will be nervous about financial breaches. Another topic that regulators would scrutinize closely is the question of data ownership. The ideal outcome is a set of international standards comprehensive enough to calm the nerves of businesses and consumers alike.
Mobile transactions. Services like Google and Apple Pay will replace plastic credit and debit cards with a single application. These services make e-commerce payments fast and easy as we pay with Google Pay cards with a single click. It can both allow for more State control of banks (MIR in Russia) and monopolization of the market between a few big digital banks.
Fintech promises huge to nations, companies and individual consumers allowing for customization and inclusivity of financial services.