2021 was a remarkable year for technology. Together, science and technology helped humanity sustain itself against the disruption and uncertainty of the Covid-19 pandemic. From education & healthcare to energy and finance, effective technology integration ensured sustained operation amidst all the chaos.
Tech has enhanced financial systems & processes, making them faster, safer, more potent, more secure, and easier to use & maintain. The merging of finance and technology, aptly named fintech, brings together some of the most advanced technologies developed in the past decade. Besides computational systems, many potent technologies such as digital networking analytics, automation, and software applications were perfectly poised for swift integration with financial systems.
The rise of fintech in the 21st century was inevitable. This article looks into the most exciting fintech trends of 2022 to watch out for.
2022’s Biggest Fintech Trends
Many of the fintech trends of 2021 are set to continue into the next year and well into the future. Web applications, data analysis, AI, and digital networking have become vital to continued operations, and it is these technologies that lie at the core of most of the financial technologies discussed below.
- The Rise Of Digital Banking
Consumer habits have changed drastically through the years. Everybody looks for more convenient ways to avail of primary & secondary banking services. The pandemic took things up a notch, forcing almost everyone to opt for remote, digital banking services.
Digital banking offers an enhanced & personalized customer experience. Digital systems are faster, more secure, and bring everything to one’s fingertips. According to Statista, more than 64.6% of citizens in the USA will use digital banking services in 2021. Digital banking has transformed banking systems, becoming a transformational tool in finance.
Online banking is not just about going completely cashless & paperless. The central technologies powering digital banking are changing the fabric of traditional centralized banking, ushering in an era of a distributed-technology-driven one.
- Better Personalization Through AI & Analytics
AI and data analytics are fast expanding their reach across different domains. For example, we have AI-powered paper checkers, AI-analytics marketing platforms, chatbots, various automated systems, and the like. These technologies allow for a better understanding of consumer behavior & thereby enable better personalization.
AI & big data analytics are now being implemented across the financial sector, too, to improve services.
Companies such as Enova, Ocrolus, Kensho Technologies, etc., are some rising names in the world of fintech that offer AI-powered analytical systems capable of providing better personalization to consumers and businesses.
AI & Data Science allows financial institutions to acquire critical information about their customer’s behavior, banking history, and even social& browsing history. Fintech systems allow for the real-time multi-channel acquisition of data alongside effective integration & insightful knowledge discovery. As a result, companies can offer personalized & relevant one-to-one experiences to customers.
- Data Aggregation
Powered by robust data analytics technologies, data aggregators also play a crucial role in offering better personalization to consumers. Data aggregators such as Envestnet Yodlee are bringing about innovation in the world of finance by accumulating data about a customer from multiple sources.
The company collates data from investments, credit cards, banking activities, commercial reward accounts with proper authorization & permission from owners. One can expect this tech trend to be widely implemented across the sector in the coming years.
4.Blockchain & Cryptocurrency
One of the most significant disruptions in finance, blockchain & crypto has led to widespread upheaval. Cryptography, computer processing, and digital networking are fast decentralizing finance worldwide. End-to-end safety, safety, and the lack of a meddling middle-man are the most significant benefits of this fintech.
The year 2021 saw a burst of activity in the blockchain and crypto sectors. This trend is likely to continue through 2022. In addition, blockchain and the crypto ecosystem are expected to expand into banking, alternative asset trading, and financial support structures. As a result, one can expect a broader and more diverse range of investors considering investing in this space.
5.Robotic Process Automation
Robotic Process Automation (RPA) brings together robotics and AI to the world of finance. It is a powerful business process automation technology that involves the utilization of ‘software robots.’
According to Gartner.com, 80% of financial leaders worldwide are planning to integrate RPA into their systems. RPA automates finance processes, from the most straightforward task automation to complete system automation. An RPA entity can work 20 hours a day, seven days a week, and 52 weeks a year. Lower costs, better accuracy, intelligent forecasting, and increased productivity are the most prominent advantages of this popular fintech trend.
- Voice-Enabled Payments
An offshoot technology of digital banking, voice-enabled payment, and other financial processes are enjoying widespread implementations.
Voice-enabled systems have become a trusted way for consumers to conduct routine banking operations swiftly & efficiently. In addition, AI techniques such as natural language processing & its subsets, natural language understanding & natural language generation allow computers to understand human text & speech seamlessly.
