Top Trends In Fintech To Look Out For In 2022
The advancement of technology in the financial sector has led to expanding markets, versatile platforms, and a promise for further developments. There are several trends in fintech that are emerging and evolving this year. In this blog, we will be exploring the top ones.
Top Fintech Trends 2022
Let’s explore some of the most prominent trends in financial services in 2022:
According to a report by PR Newswire, the blockchain market internationally is predicted to reach $39.7 billion by the year 2025. In 2020, it was estimated at $3 billion. This is quite a sizable growth, which isn’t surprising seeing how blockchain is the necessary foundation ruling the digital currency world.
It is used to encrypt cryptocurrencies such as Bitcoin, but that is not all. There is incredible potential that blockchain technology possesses, which hasn’t been explored. However, there will most possibly be several groundbreaking developments emerging in this field in the coming years. Moreover, non-fungible tokens and decentralized finance (DeFi) have taken the fintech world by storm and are a great example of how blockchain has already started changing the financial sector.
2. Digital Banking Services
Bank closures are happening left, right, and center due to the pandemic-related altering of consumer habits. Therefore, in 2021, 64.6% of people in the US used online banking services.
As a result, banks have had to improve customer experience, delivering services more quickly and efficiently.
The relevant technologies have significantly contributed towards the move from a traditional, centralized banking model to one that is more technology-driven and better distributed.
3. Robotic Process Automation (RPA)
Research states that by 2027 robotic process automation (RPA) is estimated to reach a value of $11 billion, a $9.96 billion increase from now. RPA enables organizations to become more efficient without putting in considerable investment. This technology leverages software robots (more commonly known as ‘bots’) to free human resources. It also improves the way repetitive, routine business activities get conducted.
4. API Management Platforms
An API (application programming interface) management platform helps manage APIs, which are shortcuts used to build a new app or implement new services and features within existing ones.
A study by McKinsey showed how 91% of APIs developed by banks used to be privately held in 2018, but in recent years has shown a considerable rise in open and partner APIs in the market. This is a fantastic trend to emerge, as it allows banks, fintech, etc., to expand their networks and share technology.
As much as cybersecurity technologies have evolved, hackers have too. They are using even more sophisticated methods to find security flaws within the most secure systems, and thus everyone is advised to take cybersecurity more seriously.
Therefore, fintech startups, in particular, are more innovatively utilizing cybersecurity technology like blockchain to make data storage safer. Other cybersecurity trends that have left their mark on the fintech industry include secure access service edge and multi-cloud data storage.
6. Alternative Forms Of Payments
It’s no secret that cashless transactions are becoming more and more popular. Since technology is advancing rapidly, and the pandemic has made us more reliant on our phones, people expect their financial transactions to be more convenient.
Mobile payment apps such as Samsung Pay, Apple Pay, Google Pay, and Paypal are being used more and more, especially by the younger generation. Moreover, now people are even using voice-enabled technology, allowing people to speak to their digital assistants such as Amazon Alexa, Google Assistant, and Siri on phones or home devices. These can help them keep up with their balance and make money transfers or payments.
It is essential to be aware of the various emerging fintech trends, as the industry continuously develops and changes with the rest of the world. Computer Resources of America understands the importance of such technological systems and data threats, and can help your company implement a variety of IT strategies. To explore offerings and services, visit our site today or give us a call for a free consultation!