Top 6 FinTech Trends in 2022
Together with technological advancements, the ever-growing digital economy is changing the financial industry dramatically. As new technology-enabled solutions and products in the financial industry continue to grow, the way we manage our life savings, borrow from each other, organize payments, and complete financial transactions also continue to change.
As it’s clear, some of these additions have made it more convenient for people to access banking and financial services. These technologies also help financial institutions optimize cost and productivity. So, what FinTech trends are currently making waves in 2022, and which ones should we keep an eye out for? In this post, I will outline six fintech trends that I see thriving in 2022.
With the pandemic of 2020 causing many to stay at home, more tech companies and banks began offering internet-based mobile solutions to give people easy access to financial services without leaving their homes. Currently, consumers prefer digital banks over traditional banks because they no longer want to deal with tedious paperwork or long queues when addressing their banking needs.
Therefore, there is a good chance that in 2022, digital banking will experience rapid growth to the point where in-person banking will become less and less popular. In fact, this report estimated that consumer visits to retail bank branches would drop 36% between 2017 and 2022, while mobile transactions will rise by 121% in the same period. This trend is a testament to that.
Another fast-rising Fintech trend is the Virtual card. For many consumers, virtual cards have become the go-to for online and in-store purchases. Virtual cards work exactly like a physical bank card, only that it is stored on your phone. It has its unique card number, expiry date, and CVC and is highly secured by encryption.
In my opinion, Virtual Cards will surely increase in popularity because we now live in an era of online shopping and contactless payments. Thus, with more consumers looking for convenient and safe shopping and banks looking to save costs by not issuing cards, it’s highly likely that this trend will continue.
Blockchain continues to stand out as a technology largely accepted and adopted by financial institutions thanks to its numerous benefits. With the right application, financial companies can make their products or services stand out in terms of speed, security, and efficacy. Blockchain technology can be used to:
● Keep an automatic record of data
● Protect the bank from fraudsters
● Protect users against errors in financial transactions
● Make international payments and transfers faster and with a minimum commission
Essentially, blockchain technology allows transactions to be done in a safe and secure manner, and this is why there is no doubt that we will be seeing so much of it in 2022.
Robotics Process Automation (RPA)
Using robotics to simplify manual tasks in financial institutions is a welcomed innovation since it frees up staff time to concentrate on more creative and human-like tasks.
Its adoption in the financial industry is fast, revolutionizing how many banking and finance companies do business. They are quickly taking over finance in various ways that are saving the industry millions and automating time-consuming tasks. Most financial companies use RPA for tasks such as credit card reconciliation, fraud detection and prevention, customer service, regulatory compliance, and invoicing.
Given that the average consumer tends to choose products that offer him convenience—who doesn’t like Siri and Alexa—the use of voice assistants in finance is growing rapidly as well. More financial companies are now embracing this technology and are looking to expand their use of digital assistants by introducing them into financial management.
In fact, more financial companies are already implementing assistants as an alternative to chatbots and call center operators. With Voice Assistants, the owner will be able to pay for goods and check their balance while doing other things. This will also improve the accessibility of financial services for people with disabilities. Also, Statista predicts that by 2024, we’ll have more digital voice assistants than the world’s population.
Use of Artificial Intelligence (AI)
In the banking and finance industry, artificial intelligence is used for a wide range of purposes ranging from lending decision making, customer support, fraud detection, and credit risk assessment to insurance, wealth management, and much more.
Today, modern fintech companies adopt AI for enhanced efficiency, improved precision levels, and high-speed query resolution. Ultimately, the application of Artificial Intelligence in FinTech drives innovation, leading to personalized, fast, and secure services with higher customer satisfaction and global reach. So, artificial intelligence in financial markets is definitely here to stay!
These trends aim to improve financial services and will undoubtedly lead to better transparency, faster transaction processing, better client assistance, and improved availability of financial data.
Nonetheless, what do you think about these fintech trends? Let me know your opinions in the comments.