In the past 10 years, the FinTech industry kept growing at a steady pace. However, the past year was quite impressive. 2022 will surely follow suit. We will see some interesting things develop and the following trends are the top ones we should highlight right now.
Embedded Finance Will Grow
With embedded finance, it is clear that it will keep growing, which makes this the main trend to highlight on this list. This term means an integration in non-financial platforms of financial services. Customers get to access different possible financial services while they do what they are already used to. For instance, you can use the online taxi app in order to make payments because of the inbuilt solution in it. Or you can use your Twitter app to learn how to get quicker loan with the included browser.
For 2022, a big part is the buy-now-pay-later system. We expect this to become mainstream and options like Klarna, PayPal, and PayPo will be even more integrated into online shopping.
One-Stop-Shop Digital Solutions
In 2021 we saw the evolution of digital-only banks and this will surely continue in 2022. Actually, we expect these banks to become mainstream since the pandemic still goes on.
A study conducted by McKinsey highlighted that new financial institutions fully take advantage of fintech solutions. They give access to several digital features while taking out the regular physical interaction from the equation. Fully remote services are only going to grow and we will see even more digital institutions pop up.
Improved Forex Options For SMEs
International eCommerce grew just as much as home deliveries in 2021. SMEs kept growing at the same time and cross-border payments are expected to go over $156 trilling this year. The problem is there are no good options available when it comes to global payments for such businesses. Unaffordable solutions that are actually created for enterprises are now used.
We are looking at several regulations that have to be respected for cross-border payments. But, new options are appearing, like BaaS platforms that offer good foreign currency services. Examples of such platforms include Airwallex, Stripe, and Curve.
NFTs And Cryptos Explored By Traditional Financial Institutions
Blockchain technology can disrupt banking but we have to understand that banks and other traditional financial institutions can take full advantage of what the blockchain brings to the table. Several banks are now investing a lot of money in the development of blockchain systems that would benefit them.
Blockchain offers unbeatable security for transactions and identity management is so much simpler. We simply cannot neglect its usage in all aspects of the finance industry.
The Development Of PaaS (Platform As A Service) Solutions
A big part of the work of FinTech providers is the balancing of security and efficiency for customers. Financial regulations keep changing all around the world so customer data APIs can offer the solution needed to help speed up transactions. With PaaS, FinTechs and banks can quickly adapt to changes in regulations while offering a fully customized infrastructure, all through the embracing of cloud technology.