Upcoming FinTech Trends in 2022
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Upcoming FinTech Trends in 2022
What are the noteworthy trends in FinTech that are turning up in 2022? Find out here, and learn how financial enterprises and banks implement these trends.
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Join For FreeSteady growth in the FinTech industry has taken place in the past decade. It is revising the lines in financial services. 2021 has witnessed significant innovation like never before. FinTech companies made a 96% increase in global funding and are turning out to be the "Decacorns." The rise of FinTech as a Service (FaaS) platforms fueled the expansion of digital banks and the rapid adoption of biometric technology in onboarding. Further paradigms, such as embedded finance and autonomous finance, are emerging components of the sector, and 2022 is expected to see significant maturity.
The question that often turns up is: "What is the future of FinTech in 2022?" The prime predictions will be detailed in the sections below.
Embedded Finance and Insurance Boom
Embedded finance and insurance sparked a storm in the world of finance and significant growth is evident in 2022. It refers to seamless financial services amalgamation into the non-financial traditional platform. It allows clients to access financial services depending on their activity, such as the incorporated payment solution in the online cab app. In this area, the "Buy-Now-Pay-Later" concept is well-known, and it has the potential to become mainstream in 2022. The programs of embedded investments would result in offering inexpensive and easy access to stocks and funds.
Digital-Only Banks Growth
The pandemic outbreak triggered in complete eradication of physical banking procedures. Remote management and access of personal funds are conceivable, but several conventional banks lack the adequate infrastructure to do so. The popular FinTech products are connected with digital payment and the budding financial institutions deal with the challenge through advanced FinTech solutions. The API integration is crucial in dealing with customer preferences and behavioral alterations. This helps in providing top-notch customer service and user-friendly applications. This is where the rise of digital-only banks took place, and it is forecasted that 2022 will play a pivotal role in the rise of digital-only banks further.
Leveraged Use of Biometric Security Systems
The demand for biometric security systems will be directly proportionate to the expansion of digital-only banks. Cybercrime is a critical concern in digital banking and financial activities. Adequate installation of advanced biometric solutions is the appropriate answer to this issue. Biometric sensors that depend on physical contact in digital banking degraded in popularity after the COVID-19 outbreak. Therefore, the need for contactless solutions became evident. In 2022, people will access their bank accounts and execute banking operations more from their tablets, phones, and laptops. Here, the equipped cameras in the devices and the officially authenticated IDs will be verified. Additionally, biometric authentication will solve user friction and improve customer experience, besides addressing security.
Autonomous Finance Rise
The year 2022 is expected to see a significant increase in the popularity of autonomous finance because it is time-saving and facilitates the customers to prioritize the important matter more. The majority of the banking clients face difficulties in staying at the top in terms of financial admin encompassing insurance, bill payments, and subscriptions. Autonomous finance reduces the burdens of the customers and implements Machine Learning (ML) and Artificial Intelligence (AI) to make automatic financial decisions on their behalf and spur next-gen banking. To keep pace with the trend, financial institutions need to attain complete digitalization of their procedures.
Functional Big Data and Blockchain Management
FinTechs and banks of variable sizes hold tremendous amounts of confidential data regarding the clients and the enterprises. Presently, a good portion of the sensitive data stays in an unstructured format and craves processing via analytical business tools. These tools acquire the capability of creating high-priority trend reports displaying the possible identified risks. Simultaneously, banks also manage large chunks of structured data on forms in the cases of loan applications, mortgages, and bank statements. Hence, the banks are seeking seamless solutions to deal with this matter.
FinTech paradigms are driving financial enterprises in making large investments in Big Data technologies. Appropriate storage and use of structured and unstructured data are forecasted to become easy through this. Blockchain implementation in Big Data will leverage the security quotient of the databases. Furthermore, advanced data analytics in connection with Big Data will aid the banks and other financial institutions in making accurate market studies for decision making.
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