2021 will go down in history as a year of “adapting to the pandemic and evolving.” It has brought forward a series of innovations and kickstarted a wave of tech-oriented solutions across industries. Across various sectors, people have embraced the challenges and finance portal development innovative solutions. Fintech is no exception.
As we step into 2022 with businesses (and consumers) relying on online transactions, we need to address the rise of tech in the finance industry.
The pandemic has accelerated the growth of fintech so much that it is experienced in every area of the financial world, be it payments, insurance, savings, and everything in between these aspects; fintech solutions can help with all of these.
Technology will keep simplifying the roadblocks in the financial industry, and growth in fintech can be expected to continue. It seems like fintech will continue to transform the economy in the years to come. In this article, we’ll discuss top fintech trends that experts expect will rise in prominence in 2022. Read more on FrequentFinance London Liverpool Victoria
Factors That’ll Shape The Fintech Trends in 2022
Before we move forward with discussing the trend, let’s take a quick look at the factors that affect these trends. Here are the main challenges that the fintech sector will have to tackle in 2022.
1. The World is Still Recovering From the Pandemic
The pandemic put a lot of pressure on the financial sector. Banks were less prepared for digital operations. They had to make sure that they offer lower interest rates, implemented remote work, and ensured higher cybersecurity standards. 2022 will be when banks come out with effective, digital-first operating models.
This brings more opportunities for fintech growth in the coming year. Hence more focus is put on making digital solutions more accessible and inclusive:
- Design standards have been raised
- The user perspective is considered now more than ever
2. Compliance & Cybersecurity
In a globally connected world, digitalization raises more challenges. Two of the biggest challenges are KYC (know your customer) and Anti-Money Laundering (AML) policies. The same goes for digital currency exchange.
3. Customer Experience
As everyone is forced to switch/adapt to digital banking, customer experience matters now more than ever. Hence digital solutions must be more accessible and inclusive. Creating a good customer experience requires an understanding of the user’s perspective.
4. Operational Efficiency
There are certain things that financial institutions will need to do in order to restore stability. These include:
- Agility in the team
- Eliminating underperforming workflows
- Reinventing entire business models
So, with four of the above challenges in mind, here are the top fintech technology trends worth knowing in 2022.
Top Finance Technology Trends To Watch Out In 2022
A study suggests that by 2022 the fintech market value will reach $309.98 billion. This investment is not just about the numbers. Let’s look deeper at how clients interact with a company and even dictate business processes from staffing requirements and technology needs.
1. The Rising Use of Cloud
Stakeholders in the finance industry are taking a strong interest in moving to the cloud. Companies like Capital One (is moving to Amazon Web Services) and PayPal (is migrating to Google Cloud Platform) represent a major shift. The competitive advantage AI offers that’s open through cloud suppliers has too ended up a prime help.
Many organizations have started using chatbots already. AI technology can analyze transactions, identify suspicious accounts or anomalies and fraud, process large volumes of transactions, and more. Besides, investing in AI-enabled technology on your own can be a bit costly for companies. So, cloud-based AI offers an alluring opportunity for financial services to continue evolving.
2. Automating Everyday Tasks
The robotic process of automation has seen an uptick in parallel with financial services’ growing implementation of AI. The finance industry is full of simple and repetitive tasks. Customer information verification, financial statement reporting, etc., can reduce costs up to a great extent.
With the help of automation, financial services can:
- Pick up more than decreased costs
- Implement efficient processes
- Relive employees of the routine tasks
- Help employees focus their efforts on more complex work
- Permits educate to advance their administrations assist once the essential errands are taken care of
3. Increased Use of Finance Portal development and Solutions
Finance portal development interfaces have helped integrate apps and services for some time now. Finance portals broaden what banks can offer to their customers. The least that customers expect from the financial services is not to silo their information.
Portals allow financial services companies to link customers’ financial information through mobile apps, browsers, and smart devices. By doing so, they’ll be able to coordinate the pace of an ever-growing innovative world.
The past two years have brought a lot of changes to our financial institutions. These trends will continue to make their way in the year ahead, and it will be thrilling to see what additional advancements arise.
4. Voice-Enabled Payments
Online banking started, so imagined that it could evolve so quickly. It quickly became a trusted way for individuals and businesses to conduct routine banking transactions. The convenience of talking vs. typing is something that customers get attracted to. With voice-enabled features, customers get the information they need within seconds.
In the coming time, natural language processing, natural language understanding, and natural language generation will enable customers to use voice for banking transactions. That too in such a precise and powerful way that will feel as if they are interacting with a human teller.
5. Big Data
Fintech providers and their customers generate vast amounts of data that can be aggregated to provide a 360 degree (comprehensive) view of a customer’s financial status. How Financial institutions are expected to partner with data aggregators so that they can use big data to improve customer retention and services. A study states that in 2020, people created on an average 1.7 MB of data every second.
6. Data Aggregation
In the near future, data aggregators will be increasingly responsible for monitoring how data is exchanged between financial institutions and their customers. Companies can retrieve data from multiple sources, including investments and credit cards outside the originating financial company. It is expected that fintech companies will use this transparency to provide their own customers with additional services.
7. Blockchain technology
According to a study, the size of the global blockchain market is forecasted to increase from $3 billion (in 2020) to $39.7 billion by 2025. Blockchain is the most significant innovation for digital transactions as it is distributed. This means that it cannot be controlled by a specific individual, company, or bank.
companies worry about the security of this cutting-edge financial technology. it only means that there’s a growing acceptance of it and that companies will find a secure way to execute it in the near future.
Agility and Innovation is the New Normal
These trends show how broad the fintech industry is. agility and innovation prove to be a game-changer for every industry. Trends in financial services, including API, cloud, video banking, and RPA, will predominantly rule the industry in 2022.
Implement these latest technologies and elevate digital customer experiences with our Banking and Financial Services expertise and experience by your side. Ready with your finance portal development plan? Let us know!
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