What trends will dominate the fintech services market in 2022?
Today, technology is developing faster than ever, but most importantly, so are customer demands. Since 2020, the intensity of both processes has taken on new levels, as the use of financial technology has become a matter of accessibility. Since then, the basis has been laid for further changes in many areas related to finance, such as the widespread use of AI and the digitalization of services. The crisis environment has shown that the old approaches are ineffective in today’s reality. I suggest that we look at what is in store for fintech in 2022.
Mobile banking will become available to more users. The universal shift of banks to mobile apps is a great way to stay in touch with every customer. Now, having an app is one of the deciding factors when choosing a bank. Decisions should come quickly and banking transactions should be done from any convenient location. For this reason, the applications can be defined as one of the most important planes in the fight for customers.
Further adoption of blockchain technology. The more independence a user has, the better. Blockchain allows clients to increase their control over their own assets. Although financial players are adopting the innovation cautiously and gradually, the increasing number of blockchain-based startups demonstrates its relevance. Blockchain is now used in many areas because security, speed, transparency, and versatility create the necessary benefits. This trend is with us for a long time.
Artificial Intelligence and Machine Learning Development: financial companies are widely using the latest technology. I’m talking about the full range of applications, from simple automated tips for users to complex algorithms for credit history evaluation. The rapid development of artificial intelligence and process automation provides many additional opportunities for the banking industry. For example, improved risk assessment, operational improvements through data analytics, and improved customer experience. Each of these parameters improves the chances of financial institutions in the fight for new users.
The development of cloud technology and PaaS. With PaaS, financial institutions can easily adapt to market needs and legislative changes. The necessary tools allow performing many tasks, including resource management, fast processing of payments, and a better understanding of credit risks. In Ukraine alone, the cloud computing market in 2020 reached almost $56 million.
BNPL (Buy Now, Pay Later) services will become even more popular in the world. Millions of users have already appreciated the possibilities and advantages of commission-free deferred payments. The introduction of BNPL is beneficial for both businesses and customers. The first ones get higher checks, while the second ones can afford expensive goods here and now. Providing this service directly at the cash register of large retail chains solves the problem of additional commissions and is costly for customers.
With the growing popularity of e-commerce, introducing new payment methods is a must for financial institutions and retailers. Companies must take into account the experience of competitors and become flexible. Modern payment methods, provision of unique services, and communication with users are the basis in the struggle for leadership in the market.