7 Tech Trends that will Change the Fintech Industry in 2022 – InformationWeek
AI adoption within the financial industry was quite slow before the pandemic. When the world locked down, it finally pushed financial institutions and their partners around the globe to automate the rest of their own banking services and make them more customer centric. What does the future hold in store for 2022? Here are seven fintech trends to keep an eye on:
1. Digital banking
Due in order to the changing consumer habits caused by the pandemic, bank closures are on the particular rise. Electronic banking offers improved customer experience and delivers faster and more efficient services. Statista estimations show that 64. 6% of US citizens use online banking in 2021, plus this means that online banking has lastly become a transformational tool in finance. The good news is that digital banking is not just about going paperless and cashless — the underlying technologies have substantially contributed to the shift from a centralized traditional banking model to the more distributed, technology-driven one.
2. White label fintech
The next prevalent fintech trend
that will you should not miss out on is white labelling. In a nutshell, white brand products are usually manufactured by a provider to be rebranded before they are sold. Finance management has a lot of complexities. White tag fintech solutions allow businesses of all size to easily create a global payment gateway. It is an actual win-win since it provides the distributor with a larger customer base and minimizes initial launch costs for the reseller.
3. Data aggregation
Data aggregators will certainly increasingly be responsible for facilitating the way data is exchanged between financial institutions and their particular customers. For instance, Envestnet Yodlee retrieves data from multiple sources , including investments and credit cards outside the originating financial institution. Expect fintech companies to use this transparency to provide their own customers with additional services.
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4. Blockchain technology
According to a Cision PR Newswire report , the particular size of the global blockchain market is forecasted to increase through $3 billion in 2020 to $39. 7 billion dollars by 2025. Blockchain will be undoubtedly the most significant financial innovation for digital transactions because its management is dispersed, which means it cannot be controlled by the specific individual, company, government, or bank. Although businesses worry about the security issues of this cutting-edge FinTech, Blockchain’s growing acceptance as a way to create a secure electronic ledger cannot be ignored.
5. Robotic process automation (RPA)
Robotic process automation enables companies to obtain better work efficiency with a relatively small investment. RPA uses software robots (bots) to free up human resources and improve the way routine, repetitive business activities are carried out. Right now this technological innovation is valued at $1. 40 billion — look for it to reach $11 billion by 2027 ( Grand View Research ).
6. Voice-enabled payments
When online banking started, no one could even imagine how quickly it could evolve. Are expecting voice to become a trusted way for individuals and businesses to conduct routine financial operations just as quickly. The convenience associated with talking vs. typing is usually going to help customers quickly get the information they need. Improvements within natural language processing, natural language understanding and organic language generation will allow clients to utilize voice for banking transactions in so powerful a way that will feel as if they are usually interacting with a human teller.
seven. Big data
You will be shocked but within 2020, people created 1. 7 MB of information every second.
Fintech providers plus their customers generate vast amounts of data that can be aggregated to provide a more comprehensive view of a customer’s financial status. Expect monetary institutions in order to partner along with data aggregators (see #3 above) so they can use big data to improve customer retention and improve services.
The Bottom Line
FinTech trends will surely never be the same after 2020. The events of last year broadened our own understanding associated with what a digital economy is definitely going to look like moving forward. Make sure you keep these latest fintech trends on your radar screen so you can maintain a competitive advantage simply by transforming the future of your business finance.