The FinTech space has seen explosive growth with the trend of contactless payments. It has not only given rise to new and innovative startups in the fintech space but has made lives easier for millions of internet users. Typically banks used to act as a gateway for services that involved the exchange of money and services. The trend is expected to grow further with a streak of innovations, features, and updates as the technology evolves. It is there important that fintech and banking entrepreneurs keep a tab on the latest that is budding in the technology space. In this blog, we will talk about top trends that are expected to rule the year 2022.
Expediting Payment Technologies
Quicker and secure transactions, innovative and easy payment methods, improved global accessibility, etc. are supposed to be on the top of the list when it comes to fintech applications. As we witness a surge in AI implementations across stores as well as in the popularity of contactless payment solutions owing to COVID-19, customers become more inclined to use apps that provide services like one-tap payments, pay later feature, etc. Moreover, in a bid to be sustainable and environmentally friendly, numerous banks are aborting the issuance of cards and other plastic accessories related to banking and switching to digital means of banking only.
Open Banking
Emergence of digital payments, as well as, autonomous neo banks, during the 2020 pandemic reaffirmed the stark need for optimal digitization of NBFC and banking space. The concept of Open banking is accelerating this digitization. It is an API-driven approach that enables banks, FinTechs, and micro-lending firms to deliver their services through secure, authenticated, and integrated customer data smoothly. There are numerous countries rolling out regulations that are pushing banks to offer open banking as a part of their services as a response to the growing customer demand. Additionally, FinTech giants are embracing standards of open banking actively in their range of products as well as services. Hence, open baking will continue to remain a stirring trend in the years ahead, and enterprises should actively start to implement it with technology partners.
Evolution of AI/Machine Learning
There are numerous bank and FinTech apps on the app stores that have fully embraced AI/machine learning for various critical aspects of their businesses. These include loan sanctions, fraud detection, risk monitoring, investment predictions, etc. Blockchain is another breakthrough technology fostering the growth of AI/ML in the financial space. Primarily known as the technology behind cryptocurrencies, blockchain continues to witness considerable implementation across the fintech arena. Blockchain tech helps automate the rudimentary procedures into quick, secure, and transparent processes.
Banking-as-a-Service (BaaS)
Banking-as-a-Service and platforms as concepts are evolving every day and emerging as an effective and affordable way to provide customers with finance-related support. BaaS facilitates partnerships with banks for delivering customized and regulated financial services to the customers, where banks monitor regulations as well as operations, and the platform heads the client acquisition, servicing, etc.
Digital Employee Benefits
An amalgamation of fintech and HR operations can offer employers a way to revamp their platform for employee experience. It can also help strategize business offerings through tech services such as on-demand disbursals, access to earned wages and payslips, etc. Accelerated by tech-inclined regulations as well as employee satisfaction for quicker pay-outs, the companies in the fintech space are aiming to digitize cash-intensive industries, minimizing physical checks, piloting cheaper products, etc.
These trends, although, are only a fraction of the revolution that is taking shape in the financial and technology space. With the FinTech space growing at a breakneck speed, the prospects of the banking, as well as the payments industry, will continue to thrive and disrupt the firms that do not adapt.
In the past few years, we have seen numerous innovations in the digital transformation of the financial landscape. 2022 is expected to bring in more stability in terms of operational business activities, as well on the innovation fronts. Digital banks, financial institutions as well as fintech firms should keep an eye on the year around trends that are expected to shape the business in the forthcoming years. To better control your digital infrastructure and implement updates quickly, get in touch with one of the fintech app development companies.