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8 Up-To-Date Fintech Trends to Watch for in this Year

HomeBusiness8 Up-To-Date Fintech Trends to Watch for in this Year

Fintech is the industry that offers technological solutions to financial institutions. Fintech has already made its mark by introducing online payment methods in the past year. More fintech industry trends are set to be introduced, and we are excited to be announcing some of them.

Investing Courses Are on The Rise 

In reality, many people still don’t understand how blockchain works, what it is, and how it can change the world as we know it. With blockchain and cryptocurrencies becoming normalized, there’s a growing need for legitimate, comprehensive educators on these topics. Already, there are many courses on crypto training, but few are by people who are not trying to extort or scam. In 2022, quality courses like Dan Hollings’ The Plan will greatly benefit people who want to explore and possibly invest in crypto.

A Bigger Growth of eCommerce with Flexible Payment Options

Since the COVID-19 pandemic started and governments imposed countrywide lockdowns, businesses had to morphe their operating structures or else they wouldn’t survive. There was a considerable increase in eCommerce activities, and home delivery replaced walk-in shopping. We saw an introduction of new business ideas like drop-shipping and print-on-demand. Fintech thrived in these circumstances, and the growth is still set to increase in 2022. Even with physical shops re-opening and pandemic restrictions loosening, people are already used to the home delivery system and find it convenient and cheaper than travelling to a physical shop.

Cross-border commerce continues to grow steadily. In 2022, we’re set to see an introduction of more international payment and banking systems to cater to the growing market. Moreover, with the expansion of eCommerce, there’s an increasing need for flexible payment options in 2022. Already, buy-now-pay-later services like Klarna have taken the masses in a storm. People love the flexibility it offers them to buy what they need and pay when they can.

Digital Banking Will Become The New Norm

Digital banking or cloud banking will be a huge fintech trend in 2022. This will be the result of some triggers; worldwide governments have been championing cashless transactions, and people saw sense in it. COVID-19 is proven to be transmitted through surface contact. Restricting the use of cash helped to stay the spread of the disease.

Secondly, more people have been working from home, and entire businesses have had to move their infrastructures online. As a result, there’s a need for secure, cloud-based banking – banking that will take place entirely online. No need for a trip to the bank every month to deposit a check. This will consequently force the traditional banks to collaborate with fintech to transform the way they serve their clients and get a piece of the cake when they have the chance to.

Normalization of Cryptocurrencies

The adaptation of blockchain technology by major financial institutions was a slow but steady process that could have been slowed down by scepticism. Now, financial experts worldwide almost unanimously agree that blockchain is legit and the future of bulk financing. What seemed to be an anarchist’s fantasy will become the new normal in 2022.

The main reason for this is that blockchain is very secure. Only the person who has the crypto wallet password can access your funds. For this reason, it’s likely to be used by banks to eliminate fraud and manage audit issues. Also, blockchain is fast. Huge funds can be processed and transacted in minutes, thus accelerating payments, financial investments and asset transfers. In 2022, Japan will start experimenting with a bank-backed national cryptocurrency called DCJPY.

Artificial Intelligence in The Financial World

Adaptive machine learning has been making its way into day-to-day life through the Internet of Things (IoT). In 2022, artificial intelligence will be implemented in vital financial infrastructures to eliminate errors caused by humans. Robotic processes will be leveraged for better risk management, identifying possible loan defaulters, maximizing efficient operations, and offering stellar customer service. Payroll services will also become digitalized and automated. There will be new options like crypto payroll, salary on-demand, and advanced salaries. This trend is intertwined with other fintech trends.

Software as a Service (SaaS)

In 2022, financial service providers will want to leverage cloud platforms fully. This is because bank regulations are constantly changing, and flexible operating models need to be set in place to adapt to the needs of consumers. SaaS will help financial institutions operate a variety of tasks like team collaboration, project and resource management, payment processing, and loan processing. SaaS can also offer solutions to small to medium-sized businesses as they continue to move their operations online.

Mobile Banking Will Go Mainstream

Arguably, mobile banking was invented and is already widely used in Kenya. The rest of the world is set to catch up to this fintech trend in 2022. Mobile banking is convenient and gives the consumer more financial power. This trend may merge with other trends like digital banking, blockchain and ACH. Mobile banking will enable users to complete transactions, like fund transfers and loan payments, in the palm of their hands. Network bandwidths and telecommunication capabilities will also see a significant improvement to help this trend become the new normal this year.

Other Industries Will Blend With Fintech

Times have changed, and for existing industries to avoid being phased out, they’re forced to adapt. Technology and fintech services will be in greater need in 2022, and small businesses to corporations will benefit the most. Many establishments are looking for people who can help them change their infrastructures to become more digital and to train their employees on these new models. Therefore, we will see more partnerships and collaborations between fintech and other industries.

In conclusion, opportunities for fintech services are going to grow exponentially in 2022. Many functions of society are moving online, and businesses feel the pressure to adapt to this. Also, cryptocurrencies will become more accepted. Therefore, there will be a need for quality training on crypto investment.

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Patrick Watt
Patrick Watt
Patrick Watt is a content writer, writing in several areas, primarily in business growth, value creation, M&A, and finance. Other interests also include content marketing and self-development.

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