FinTech trends that will change the BFSI industry in 2022

By Leandra Monteiro

Individuals are always on pace with the trend. The sudden emergence of a trend will always keep the people on the hook. So, in that context, what’s brewing in the Fintech Industry!? And what are the trends that the Fintech Industry is expecting which are going to witness a resonance!?  To elaborate on that, a few trends like BNPL and AI will continue to see a soaring height even in the year 2022.

Elaborating on the trends for 2022, Rohith Reji, Co-founder and CBO of Neokred shared, “One of the trending sectors in Fintech is Neo banks which is a booming industry that is a kind of replacement to the traditional banks which unlike them extends its services through digitalized mode with increased benefits of inexpensive services. With the technology showcasing its superior output, Neo-banking has functionally developed with new features and is in the stage of overtaking the traditional banks. They have entirely changed the perspective of a conventional financial model with a technology-led method of banking. These are among various FinTech’s emerging sectors with more than 15 well-established Neo-banks currently functioning in India and many more in the evolution stage. With still in an inception stage, Neo-banking in India has its challenges of function faced with regulatory barriers. With nearly 95% of industries in India being MSMEs, they have become the main target of these Neo-banks which extends its financial services to them.”

He added, “Another trend that has all the lights on it is the Open banking system in India which has witnessed its growth and development stirring the nation’s financial industry in recent years. Open banking is a sort of decentralized model of banking which permits access and control of customer banking and monetary records through outsider applications especially third-party setups like Fintech start-ups and other financial online vendors. They have successfully paved the way into the Industry 4.0 enabling the customers with more command over their data and making the feasibility of banking more helpful and comprehensive. Rather than worldwide ways, India’s open banking environment gets along on a crossover establishment; one where the market and government have altogether filled the economy’s turn of events.

AI-based solutions applied in the field of FinTech are causing a great revolution by gaining momentum year by year and staying at the top trending mania. The AI can interpret how a client interacts with their transactions and learn about their conduct and proceedings. It has various applications and inputs which enable accurate decision-making, automated customer support, automated virtual financial assistance that are crucial in terms of the management of finances.”

Reji went on to add, “Discussing the emerging trends in FinTech, we can’t miss out the WealthTech which is anticipated to become one of the top trends in Fintech by the year 2022. This brings together the wealth and technology to provide the much-required financial management solutions. WealthTech seeks to make financial planning easier and more effective for everyone.”

With lots of challenges being faced as time fleets, there is vigorous development being seen for the FinTech industry along with a great future ahead. Side by side, the financial market also witnesses changes on a regular basis. All this happening simultaneously brings about new trends according to the challenge faced.

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