Top 10 Fintech Trends to Watch out in 2024

In 2021, the financial technology industry saw almost 40 new unicorns and a significant increase in investment. The breadth of innovative solutions revolutionized finance. Keep an eye on the top trends in fintech to stay ahead of the game.

‍

Hence, it becomes important to keep up with the latest developments in this industry.

‍

Here are top 10 upcoming fintech trends to watch out for in 2022:

1. Embedded finance is on the rise

‍

In FinTech, embedded finance is quite popular. It makes it possible for businesses that aren't financial institutions to incorporate financial goods and services. Fintech consolidates the financial process for users and increases business efficiency. By 2030, experts expect the market to be worth $3 billion, proving that it is more than a passing trend in finance. It certainly is the future!

‍

Ever seen a statement like "Pay as little as Rs. 1000/month"?

‍

If yes, then you would have encountered embedded finance during online shopping online for an expensive item.

‍

2. Investors receive more value through DeFi

‍

Decentralized finance has for a very long time been only associated with cryptocurrencies. But in 2022, DeFi established a parallel financial sector for businesses. It provides markets, loan services, as well as asset management. 

‍

Its range of products will only expand in the coming years. It will lead to accelerated innovation, enhanced market efficiency, and richness of opportunities.

‍

Millennials and Gen Z will continue to drive the financial revolution by experimenting. Traditional finance and their burnt-out employment disenchant them and thus they explore alternative financial choices.

‍

3. The era of the "super app" is now upon us

‍

It’s going to go over and above the common saying "there's an app for that" in 2022. People call these "super apps" as they provide broad and varied service and product portfolios via a single platform. 

‍

Customers use these super apps to buy items and services. They can also book appointments, make reservations, and even send shipments to wherever they choose.

‍

4. Artificial Intelligence

‍

In 2022, fintech companies continue to increase their use of AI and machine learning.  They might use various AI mechanisms like robot advisers, sophisticated algorithms and many more.  

‍

All these help in predicting consumer behaviour and offering personalised product recommendations. This in turn streamlines the customer's journey and upsells to customers.

‍

AI in the financial sector can help with a bunch of things through user behaviour analysis and fraud detection. 

‍

It can improve personalization, strengthen security, raise customer delight, and identify fraud. Using chatbots to answer client FAQs, also saves businesses time and effort. This allows staff members to concentrate on other tasks and customer service requirements.

‍

5. Virtual Cards

‍

Virtual cards are emerging as a secure way to purchase goods and services online. Instead of using the actual bank card, the user enters a 16-digit number from a temporary digital analogue. 

‍

These cards are maintained in the digital wallet on the phone. Both offline and online businesses utilise them for contactless payments. The primary physical bank card can still be used after the card has been banned.

‍

The virtual credit card is secured. Every purchase creates a special number, which is inactive after payment.

‍

Even if a hacker gets their hands on the code, they won't be able to use it. This is how people constantly safeguard their money from online thieves.

‍

Virtual cards provide financial organizations with several advantages:

‍

1. Cost savings by limiting the use of physical cards,

‍

2. Protection of private information from scammers,

‍

3. Enhanced productivity as a consequence of accelerated payment processing and other activity optimization

‍

6. The Upcoming Platform as a Service Trend (PaaS)

‍

Fintech is a never-ending battle between security and ease. Customers will gain from the establishment of APIs to their data as banks adapt to changing rules. With PaaS, institutions may react to changing demands through customised infrastructure. 

‍

It will lead to allowing them to adopt cloud platforms. These services offer the foundation for several tasks. These tasks include team communication, payment processing, and credit risk management.

‍

7. Blockchain as a Service

‍

Experts believe 2022 to be a watershed year for blockchain technology as Web3 becomes safer and more widely available. As cryptocurrencies, the Metaverse, and virtual reality have started to take shape in everyday life. 

‍

Given the benefits of speed, transparency, security, increased capital optimization, etc., the FinTech sector cannot afford to ignore Blockchain. 

‍

Blockchain-as-a-service (BaaS) may become popular due to the advantages of blockchain technology. Also, businesses in 2022 search for methods to simplify all facets of operations.

‍

8. Internet of things

‍

Connected devices are being used more by fintech organisations to get business-friendly information and make better decisions.

‍

IoT performs many useful tasks in FinTech such as monitoring devices, and controlling and turning off the system. 

‍

Other scenarios are in place of a bank card; smartphones, wristbands, and smartwatches make the payments. Smart refrigerators and connected speakers can place orders and make payments on their own. 

‍

9. Biometric authentication

‍

FinTech firms have started to depend on financial technology immensely. Cybersecurity experts believe that biometric authentication is safer than traditional passwords and PINs. Moreover, unique fingerprints, iris patterns, visage, and voice cannot be faked.

‍

Users think that biometric identification is the best method for confirming their identity. They need to remember one new password per year. Even if you misplace your laptop or smartphone, confidential information will still be secure.

‍

Over 90 percent of customers see the safety of bank accounts as the most essential concern. Thus, making technology for biometric authentication technologies is a priority for FinTech.

‍

10. Voice Payments

‍

By 2025, there will be 8 billion more voice assistants on the earth than there are humans, predicts Statista. People like shopping, listening to music and conducting research via connected devices. Fintech companies promote the use of digital assistants by incorporating them into financial management.

‍

According to research, more than 40 per cent of customers expressed interest in using voice assistants for banking. Many FinTech businesses are introducing voice assistants to counsel clients on complicated issues. 

‍

They are introducing voice assistants in place of chatbots, managers, and contact centre agents. By 2026, the worldwide market for voice and speech recognition technology is expected to nearly treble.

‍

These trends for 2022 are starting to act as growth catalysts for the fintech sector. Technology has enabled mobile and international payments,  the creation of financial software, and super-apps. 

‍

It has also helped banks and other financial institutions in various ways. Some of these are increasing prospects, enhancing service accessibility, and preserving their brand. 

‍

These financial institutions may save money and lower operational mistakes. Also, it helps in safeguarding consumer privacy by depending on IT. Businesses keep a competitive edge in a choppy market by adhering to FinTech developments.

‍

All these share the same trait: they greatly simplify the lives of customers and enterprises. There are of course some growing pains involved in using these technologies at scale. But, the end outcome will fundamentally alter how we see the money.