5 FinTech trends to keep an eye on in 2022
By Joy Dumasia
FinTech refers to software and other modern technologies used by businesses that provide automated and improved financial services. FinTech in our daily life is Mobile Payment apps, Cryptocurrency and Blockchain like Bitcoin and Gemini. In the future, the range of FinTech services is predicted to transform the market even more with A.I. and machine learning and will make FinTech products an integral part of our digitalized life.
FinTech refers to the synergy between finance and technology, enhancing business operations and delivering financial services. FinTech can take the form of software, a service, or a business that provides technologically advanced ways to make financial processes more efficient by disrupting traditional methods.
FinTechs role in society is becoming more vital than ever, mainly due to Covid-19. FinTech can be used anywhere, by anyone meaning it becomes accessible to people who may never have taken advantage of financial services before. Through access to essential financial services such as mobile money and e-wallets, FinTech companies are helping lift people out of poverty and create a more financially inclusive world.
The following are 5 FinTech trends to keep an eye on in 2022:
- Artificial Intelligence (A.I.) and Machine Learning (ML)
Machine learning applications enable the processing of large amounts of data sets and reaching valuable conclusions which, by using its algorithms, can drive effectiveness and provide efficiencies, including time-saving opportunities. It analyzes patterns in real-time, enabling quick decisioning. Many financial services applications already use AI/ML for everything from fraud detection, lending approvals, and AML screening to risk monitoring and investment predictions. Machine Learning is constantly evolving, and FinTech will continue to be one of the leading industries to benefit from the power of AI/ML.
- Adopting Cloud Services
As users and data spread out and data crosses into the vendor ecosystem, security teams seek ways to protect this expanded attack surface. They are looking to control where data lives and how users interact, and attaining this control will be a top priority this year.
One way to do that and mitigate risk is through the continued adoption of cloud services. As capabilities expand within different solutions, organizations will look to the cloud and adopt cloud-based security solutions that solve broader attack surfaces. Cloud services will also help consolidate tools and solutions that were not necessarily meant to work together.
- Digital Banks
Digital channels have allowed the banking industry to evolve for an increased customer base, new markets, and products. With the pandemic and social distancing, digital bank growth has escalated and is poised to grow in 2021. Better offerings and fewer fees are a big driver for consumers to move to digital-only banks.
- NFT – Non-Fungible Tokens
An NFT (non-fungible token) is a unique cryptographically-generated token that uses blockchain technology to link with a unique digital asset that cannot be replicated. NFT digital content represented as tokens that ascribe provenance to uniquely distinguishable assets by artists, gaming companies, content creators is driving a new wave of crypto adoption.
- Embedded Finance
Embedded finance is a term used to indicate the offer of financial services by companies that do not have their DNA in this sector, such as retail, bigtechs, among others. The acceleration of this trend results from the Banking as a Service solution offered by FinTechs, which allow companies from different segments to create their banks and digital accounts. By providing financial services, these companies can strengthen the relationship with customers, improve their services and develop other sources of revenue.
ALSO READ: Cool FinTech Report 2021
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