FinTech, as we know it, continues to take over and transform our very existence. Even though COVID-19 took a hit at many industries, FinTech remains one of the very few to soar. The pandemic in fact brought a huge surge in the FinTech market, making it a part of the new normal.
Despite the fact that we’re almost halfway through the year, 2022 can still turn out to be a milestone year to witness some ground-breaking innovations in the world of FinTech.
Here are top 7 FinTech trends to watch out for in 2022:
- Open Banking – aka Open Bank Data is a system that allows third-party financial service providers to access consumer banking data using APIs. It is a rather revolutionary and interesting technology that integrates both banks and FinTech together. It facilitates in driving better collaboration between financial services providers, bringing greater innovation, reducing risk and offering improved banking products and services to customers.
- Embedded Finance – The explosion of embedded financial solutions is already going mainstream with the boom of Buy-now-Pay-later (BNPL) offerings by companies like Amazon Pay Later, Ola Money Postpaid, Simpl, LazyPay and ZestMoney. With banks and FinTech constantly exploring opportunities to collaborate with non-financial organisations as service providers, this trend is here to stay.
- NeoBanking – A NeoBank is not your regular bank. It is a bank that operates entirely virtually without any physical branches. What is interesting is that it uses a design thinking approach to a specific banking area and tailors its products and services to make banking a simpler and convenient experience to consumers.
- Super Apps – A Super App is a one-stop-shop bundling a bunch of services to cover every need of the consumer such as chat, digital payments, movie tickets, travel, cab services, food, insurance, fashion, e-commerce, health, and wellness to name a few. India is aptly being called the “Land of Super Apps” with Tata Neu, Jio Mart and Flipkart making a significant disruption in the digital arena.
- RPA – aka Robotic Process Automation are software robots that are used to identify, learn and mimic repetitive human actions and interactions for bringing consistency and quality. RPA bots allow seamless and error-free automation and execution of tedious, time-consuming, and repetitive tasks across different platforms thereby accelerating efficiency and reliability.
- Web3 – aka Web 3.0 represents the next generation of the internet built on blockchain that promotes decentralised protocols and reduced dependency on large tech firms. It means users can now participate in the operation and governance of these protocols themselves and can become shareholders. Web3 is likely to pave the way for a more personal, customised and decentralised browsing experience. When Web3 arrives, the internet is sure to become inseparably integrated in our daily lives.
- DeFi – aka Decentralised Finance is a global, open alternative to the current financial system that uses cryptocurrency and blockchain technology to manage financial transactions. Built on a distributed ledger technology, DeFi bypasses traditional intermediaries such as banks, brokers, exchanges and the other middlemen by using a combination of existing blockchain-related technologies — such as digital assets, wallet and smart contracts. DeFi facilitates transactions that are secure, real-time, transparent, permissionless and inclusive to support an integrated and standardised economic system.
In 2022, the world is all set to take a huge leap with the BFSI and other sectors constantly attempting to build more solutions around emerging disruptive technologies. These trends, in the ever-evolving FinTech industry, are just the tip of the iceberg and certainly have one thing in common: they make the lives of consumers and businesses simpler and hassle-free. What might increasingly seem difficult to catch up to, will eventually bring a radical shift in delivering seamless consumer experiences and digitising the Indian economy.
REFERENCES:
https://www.forbes.com/sites/forbesbusinesscouncil/2022/03/30/six-fintech-trends-to-watch-in-2022/?sh=2bc2bbdc11b3
https://www.digipay.guru/blog/top-fintech-predictions-trends/
https://ibsintelligence.com/ibsi-news/5-fintech-trends-to-keep-an-eye-on-in-2022/
https://marutitech.com/trends-fintech-industry/
https://sourcetoad.com/trends/2022-trends-in-fintech/
