The Covid-19 pandemic has brought the world towards digitalization. People were confine to their homes because of lockdowns. They were and are still purchasing products for daily use through e-commerce sites with online payment gateways.
The pandemic has changed the entire landscape of Fintech, and it played its role in increasing the GDP of many countries. Do you know what FinTech is? It is the use of financial services with innovative technology.
Initially, the Fintech field has a business approach, but now it is using a customer-centric approach. With the evolving financial needs of customers and with the emergence of new technology, Fintech is playing a significant role in the global economy.
The Fintech Industry is making progress by leaps and bounds, and it is expect that its worth will be up to $324 billion in 2026.
Do you know that AI adoption in the FinTech industry was very slow? However, Covid 19 has compelled the financial institutions of the world to automate their processes and become more customer-centric. As a result, the companies that are providing technical assistance to financial services also grow immensely.
Services like using digital platforms on cell phones, working remotely, making payment procedures easy to understand and navigate are examples of fintech.
The financial services of each country vary according to their monetary system. Moreover, the use of technology in other countries also varies. Developed countries are more tech-savvy than developing countries.
The developed countries help the developing countries to use modern financial technologies. Here the question comes: how can they make them understand when there is a language barrier? With the help of translation services. Let’s have a look at trends that will shape the FinTech Landscape in 2022
FinTech Trends in 2022
The FinTech industry will keep on making the progress as it made in 2021. The global financial transactions will take place securely. We don’t have a magic ball that can predict the future, but we can make projections while analyzing the market trends.
At present, the banking sector is a platform that is providing effective financial services to people from around the world. Global banks are considering open banking ideas. They are coming up with banking apps.
Through banking apps, consumers can check the record of their financial transactions. Moreover, if they make any payment or receive any payment, they get an instant message on their mobile. In 2022, monetary institutions or banks must adopt a modular architectural approach so that they can provide global customers with new digital financial services.
In conventional banking, BaaS holds a significant role because they are evolving with the digital transformation strategy. Thus, many financial institutions should integrate BaaS services with new technology so that global clients can benefit from their services.
Potential customers will understand the financial services of foreign land if they are provide with financial document translation services, especially BaaS services.
During the unprecedent time of the pandemic, people were making their digital payments. Therefore, in self-banking, it becomes pivotal to digitize all the services. So that they fulfill the monetary requirements of the people.
Do you know what digitalization is in open banking? It is an API-enabled technology-driven approach that enables financial institutions and banks to conduct a large number of financial transactions securely.
Open banking SOPs are use in FinTech products and services universally. In 2022, if banks will not adopt open banking, then they will not be able to provide better services to their customers, and it will restrict their growth.
Enhance Customer Experience
Due to lockdowns, people are compel to buy products and services online. Therefore, many businesses are joining hands with technology or digital banking to provide easy payment modes to potential customers.
For this reason, many FinTech companies are coming up with new technologies so that they can engage the customers with the latest technology and enhance their customer and user experience.
Due to globalization, each entrepreneur wants to expand their business outside the borders. In foreign lands, they may have to take loans from a bank. Due to the difference in language, they can apply for the loan smoothly without any hassle, if they go for financial document translation services.
There is fierce competition in the banking sector. To stand out in the competitive world, banks should provide quick responses to entrepreneurs related to banking operations and services.
Shifting to E-commerce
Due to pandemic, work from home and social distancing has become a normal norm. Many people have shifted their business from brick-and-mortar stores to e-commerce.
The survey by Accenture state that payment flow in foreign countries is expect to reach $156 trillion by 2022. Shifting to eCommerce has increased the global transactions of small and medium enterprises.
In 2022, there will be a boost in cross-border eCommerce. Therefore, customers expect secure financial transactions for their businesses.
The Emergence of Digital and Neo Banking
Traditionally, conventional banking has a monopoly in the global economy, despite barriers to entering new markets. The lack of proper rules and regulations resulted in the emergence of Neo banking.
It facilitates the customers that want easy mobile banking, lower fees, and improved customer experience. Because of these facilities, Neo banking is taking the lead over traditional banking.
More and more people are using the internet for purchasing their products online. Therefore, it is expect that digital and Neo banking will take over traditional banking in 2022.
Blockchain is the cutting-edge technology of databases. It is a ledger of transactions that shows the exchange of money. It is the best innovation in the financial industry.
Its management is distribute, and it cannot be controlled by individual banks, companies, or governments.
The report by Cision PR Newswire show that global blockchain is forecast to reach $39.7 billion by 2025. At present, many companies have an issue securing this FinTech technology so that digital ledgers can be use appropriately.
Robotic Process Automation (RPA)
RPA is another important software technology. It is innovate to imitate human actions while interacting with digital systems and software.
The report by Grand View Research stated that the worth of this technology is valued at $1.40 billion, and it is expect to reach $11 billion by 2027. People are becoming more digital.
Therefore, they want to get loans quickly. Moreover, they want silk and smooth transactions. FinTech firms provide a great platform to use RPA in the financial world.
Cybersecurity Will Become Important
Because of the increase in digital transactions, many investors, and stakeholders are looking for cybersecurity to mitigate the chances of financial fraud and to save themselves from any potential threats.
There is a great scope of fin-Tech technology in the future. FinTech trends will keep on evolving with the latest technology trends. The economic turmoil of the pandemic has enhanced the horizons of the digital economy.
The financial sector of the world is adopting new digital services to provide state-of-the-art financial solutions to global consumers. In short, Fin-Tech trends will keep the financial industry on the way to success.
Don’t forget to keep the fintech trends in your business strategy to gain a competitive advantage in the fiercely competitive business world.