Fintech Trends You Can’t Ignore
by Andreea Oproiu • over 1 year ago • 4 min read
The fintech industry has been growing exponentially over the years, and we can't deny its upcoming increase in the market. In 2022, we could witness a turning point for the fintech sector. The highest funded tech area today is what seemed like a niche of the tech world a decade ago when nobody seemed to take it too seriously.
Over $130 billion were invested in financial technology startups last year, and the field saw a sharp increase in interest across several continents.
We're witnessing the rise of fintech companies like Stripe or Klarna and a number of innovative startups on the rise. These fintech trends can make you wonder if it's worth investing in such technology in order to keep up with the future and get to offer better financial services to customers.
Let's take a look at the fintech industry
As we have already indicated, investments in financial technology companies have increased dramatically globally in recent years. Long term, despite the current slowdown, it is anticipated that the overall amount of investments will rise.
Fintech products like cryptocurrencies, blockchain, Robo Advisors, and neobanks have gained popularity and caught the attention of the mainstream media in recent years.
Blockchain, artificial intelligence, the Internet of Things (IoT), and cloud computing are a few of the important technologies that, according to a McKinsey analysis , will influence the fintech companies and even have an impact on financial institutions over the course of the next ten years.
These are the trends in fintech in 2022 and beyond:
1. Blockchain technology, a fintech trend to analyse
In 2022, blockchain technology plays a significant part in current fintech breakthroughs like digital wallets, digital assets, decentralized finance (DeFi), and non-fungible tokens (NFT) will continue to be smart contracts, zero-knowledge proof, distributed data storage and exchange technologies.
2. Banks to reach an AI-first mindset
In order to keep pace with the fintech companies and the fast-evolving technology industry, banks are beginning to shift towards artificial intelligence to provide the best customer experience.
Automatic factor discovery, or the computer-based identification of the factors that cause outperformance, is expected to become part of financial services, aiding in the improvement of financial modelling across the fintech industry. Knowledge graphs and graph computing will both take on more significance as a crucial application of AI semantic representation.
3. Cloud computing for better financial services
The financial institutions are freed from non-core operations like IT infrastructure and data centres thanks to cloud computing, which also makes flexible storage and computing services more affordable. In addition, the cloud is giving rise to fresh models like open banking and banking-as-a-service, and reinventing the traditional relationship between customers and financial service providers, in terms of usability.
4. Simple procedures to offer to customers
Beyond all the future-forward technologies, there's one of the most important fintech trends — giving better solutions to clients and their financial experience.
As the cash era is slowly going away, digital transformation is what the industry is moving towards. Contactless payments are driving consumers to the future of digital and forcing them to improve their payment methods. Due to the rise of solutions like PayPal, Venmo and Revolut, we can witness how digital banking is growing and the trends in customer experience. Not to mention that most of these fintech trends include the use of a mobile app, so that may be something to invest in.
After all, fintech is a digital way to grow the quality of banking services and provide a better experience to clients at the same time.
5. Digital banking to customer
Digital banking is the definition of the fintech trend. A bank that is completely digitized, with no physical branches.
Digital banks are able to provide their customers with the financial services they need without being expected to keep up with all the traditional banking methods. Natural language processing, machine learning tools and a bit of blockchain are what make companies like Revolut offer the best banking services to their customers.
Fintech trends you can ignore
Just kidding, we're not here to bash fintech — we're actually one of the companies that invest in the future of fintech with custom software solutions. Therefore, if you're looking to create a better customer experience for your solution or build an innovative product for the financial industry, from the ground up, contact us today and let's make it happen!
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