There is no doubt that the world is in for a major overhaul as financial companies come together and create new products and services. With banks & NBFCs (Non-banking financial companies starting to adapt to the changing times, we can expect FinTech companies to be set up with minimal overhead costs, giving them an edge when it comes to speed, cost, and client satisfaction across the board. What's more is that these financial organizations will be constantly competing with each other in order to remain relevant.
With the wide acceptability and use cases in the market, there is a prediction that FinTech will grow with an average CAGR of 20.3% from 2022 to 2030.
Let’s have a closer look at some of the FinTech trends for 2022:
Blockchain and its byproducts like crypto are making a buzz in the market for the past couple of years. Blockchain technology has established itself as a safe and secure transaction technology at both ends. Thus, some well-known finance giants are now showing interest in shifting their operations on the blockchain.
Some banks across the globe have also adopted blockchain technology in their operations partly for testing its feasibility. It will be interesting to see how blockchain will bring a revolution to one of the most traditional sectors.
While the pandemic has taught us that everything can be accomplished from home, the banking sector has also taken it seriously. With the help of FinTech, there is a rise in Neo/Digital Banks. Neo banks are just like bank branches but without any physical location.
This means Neo banks have all the capabilities of a physical bank branch. A lot of new FinTech companies entering the market are just focusing on the Neo banking concept instead of traditional bank branch concepts. The reduction in cost and ease of accessibility makes it a win-win model for both companies and users.
FinTech Gamification is a tool used to improve customer experience through the use of technology applied in commercial business. With the use of gamification, companies have been able to increase sales, brand loyalty, customer loyalty and many other positive outcomes for businesses. As customers have become more comfortable interacting with technology, they've also become more wary of how businesses use it to their advantage.
In order to stay competitive and interesting, many companies are incorporating gamification into their business strategy. Gamification has taken companies by storm. As a result, many companies have started using games as a way of marketing their products and giving customers a sense of ownership and engagement in the process.
Gartner has predicted that 95% of the new digital products will have their foundation laid out on cloud systems. Cost-effectiveness, high-security standards and 100s of other advantages of modern-day cloud systems make it a far better option than building a local server system and maintaining it.
Banking on the cloud has its benefits too. Swift global payments, P2P transfers, contactless payments, paperless documentation, mobile accessibility and a lot more is only possible due to cloud banking. It will be interesting to observe the further cutting edge advantages cloud banking brings to the industry in collaboration with other technologies.
FinTech in Metaverse
Since Facebook got rebranded to Meta and shared its vision for the Metaverse, a lot of brands has been hopping on the boat of virtual reality and have started establishing themselves in the Metaverse. Whether it's Nike launching their sneakers or McDonald’s opening their virtual restaurants, they will all need economic operations to make a two-way transaction.
This is where FinTech comes into play for the Metaverse. There’s not much clarity about how a dedicated FinTech system will work for Metaverse, but one thing is for sure it is going to be very interesting to see how FinTech shapes in the Metaverse.
We can come to a conclusion that almost every business and every individual in the next decade will be using some sort of FinTech application. The horizon of the FinTech industry is expanding and if you are somebody looking for a perfect FinTech software solutions partner for your FinTech needs then do get in touch with us.
A view of the ever-evolving digital world through our screens
15th Apr 2022
11th Feb 2022