Top 7 technology trends that will change finance and fintech in 2022
Technological advances are driving fintech development. While there is a growing debate about financial services and technology, industry officials will see 2022 supporting wisdom (AI), smart contracts (blockchain), robotic process automation (RPA) and more.
While the technological impact of financial services has been around for some time, a focus on these sectors makes the fintech value chain even more relevant in 2022. Digital wallets are on the rise as countries around the world compete to set national standards. Let’s see how technology will shape fintech and banking in 2022.
The best banking and fintech trends for 2022
1) All-digital or neo-banks
All-digital or neo-banks create a retail business from scratch and exist only in the virtual world. The digital-only company provides financial services such as international payments, P2P transfers, and cryptocurrency trading. Neobanks such as Varo, Chime and Aspiration are active in the US.
Today’s customers also want more from their banks. They also do not spend much time tending to the competition when their expectations are not met.
Neobanks succeed because they offer their clients what traditional banks are looking for. However, these conveniences come with some drivers. According to FinancesOnline’s cybersecurity statistics, financial fraud is the number one Internet crime in the world. While companies that offer digital-only services are cheap and easy, they are vulnerable to financial fraudsters living on the internet.
Also, financial transactions have many physical meanings because trust is important.
2) BNPL – Another interesting story still in its infancy
Buy now pay later or BNPL business is growing. Beneficiaries enjoy the immediate benefits offered by the BNPL program. It has become another line of credit for today’s customers, designed to make purchasing easier for customers. Once the BNPL is utilized or the program is activated, customers do not need to worry about entering their credit/debit card PINs and other details to pay or complete the purchase.
Now if we look at some fast developing countries like India, BNPL is still in its infancy.
India’s current postpaid business will grow from current $3-3.5 billion to $4.5-50 billion in 2026, according to Redseer, the largest internet consulting firm in emerging markets. The research firm also estimates that the number of BNPL customers in India could rise from 10-15 million to 8-10 million.
3) Transforming Global Financial Services Using Blockchain
The United States is a leader in the use of blockchain, making it widely available around the world. According to Statista, Blockchain.com has 63 million wallet users as of December 2020. With its truly global reach and low operating costs, blockchain technology continues to change the face of financial services worldwide. In the US market, next-generation blockchain companies are increasing the cost and performance of core systems by focusing on specific applications.
Blockstream, R3 and Symbiont offer comprehensive solutions, while Securitize and Global Debt Registry focus on the capital markets, while ConsenSys and Interface Financial Group focus on the financial chain.
Let’s not forget about smart contracts (an important part of the blockchain ecosystem)
Smart contracts can be defined in many ways. But they are the main source of self-regulation and self-regulation of contracts written in the law, which in many ways has changed the financial industry and financial services. Smart contracts are increasingly automating many manual and mundane processes in banking and financial services, reducing operational costs and increasing efficiency. By 2022 and beyond, smart contracts will become increasingly profitable.
4) Banking as a Service (BaaS)
All banks must develop infrastructure or networks to support basic operations such as saving, making payments and sending money. New age companies turned this idea into products. Banking as a Service (BaaS) is a fintech innovation and end-to-end process that enables fintech companies and third-party organizations to interact with banking institutions via APIs. BaaS helps financial services companies build services on banks’ managed infrastructure while opening up banking services.
Many banks in USA support neobanks to make good profits and rich income in the process.
For example, Cambr and SynapseFi only build API platforms for banks.
Similarly, Prime Bells sells BaaS-enabled software to many banks. Green Dot, Bank Bancorp and BBVA Open Platform have launched their own BaaS platforms.
5) AI is a must for financial institutions
Being among the first industries to adopt AI, the industry continues to see widespread use of AI in banking. It is estimated that artificial intelligence will help banks reduce operating costs by 22% around 2030 and save nearly $1 trillion. Additionally, AI promises to empower financial institutions to address the growing threat of cybercrime and financial fraud. Artificial intelligence is already in the financial services industry, leveraging chatbots and other smart systems to provide customer support. Popular AI-driven customer service software includes Zendesk, LiveAgent, Freshdesk, and Vision Helpdesk.
6) AI-Driven Speech and Speech Recognition
AI-driven Speech and Speech Recognition software and solutions are increasingly used by financial institutions and financial institutions around the world. As a result, today’s consumers are becoming more and more sound savvy. More than 51% of consumers already use voice-activated virtual assistance on their smartphones. Therefore, it is only a matter of time before customers can use voice technology to interact with their financial and financial applications.
HSBC made a statement in its consumer products bulletin.
Now, according to the bank, mobile banking customers no longer need to have trouble remembering passwords or other relevant information to access their accounts.
7) Hyperpersonalization to drive innovation and enhance CX
Deloitte’s report, “The Future of Marketing: Hyperpersonal Involvement, November 2020,” shows that “over-personalization is crucial to companies’ money, enabling them to respond to customers’ visible and hidden needs.” Leverage artificial intelligence to create and deliver personalized customer or customer experiences. optimize and contextualize services.
In an age where most banks still use mass marketing campaigns to attract and convert customers, forward-thinking organizations are poised to leverage AI-based solutions and countless other technologies to build better customer relationships and increase sales and conversions.
In addition to the top 7 trends we have shown in this blog, there is another trend that has been popular in recent years: technology companies getting into company money. Today’s banks are a combination of information and technology companies. There is a clear comparison between finance and software engineering processes and key concepts such as job tracking, inventory and forecasting modelling. Following their East Asian counterparts, many American tech companies prioritizing digital are investing in financial services and businesses.
Partnering with Goldman Sachs to launch Apple Card, Apple Inc. reinvented credit cards, bringing a new level of fintech products. Facebook announced it was getting into financial services by launching products on Instagram and trying to make payments on WhatsApp.
Business and Fintech in 2022 and Beyond: The Disruptive Impact
Technology is rapidly impacting all business outcomes in banking and financial services, updating the role, structure and competitiveness of financial institutions and businesses and the communities they serve. As things calm down in the aftermath of the crisis and regulatory frameworks around the world come into play, financial institutions are adapting their business models accordingly.
With the fast pace of digital innovation, it is clear that financial services are the most creative and disruptive aspect of today. According to experts (SMEs), these new technology trends will continue to drive innovation in banking and fintech in 2022 and beyond.
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