Fintech Trends We Expect to See in 2022 and Beyond

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Over the past two years, the global pandemic has caused huge challenges to virtually every industry. Even industries that remained relatively buoyant had to adapt to meet changing consumer demand. Despite these challenges, investor confidence in fintech is high in 2022. Forecasts predict an end of year global market value of almost $310 billion, equating to a 25% increase since 2018.

Jerry Cole Red Rose founder is one of many who will be watching to see where the fintech industry goes next. As digital transformation continues to disrupt industries across the board, several key fintech trends are predicted through 2022 and beyond.

Improvements to One-Click Online Checkouts

The one-click checkout was pioneered by Amazon more than ten years ago. One of the knock-on effects of the pandemic has been an acceleration in the shift to online shopping. The result of this increased traffic is that more companies are introducing one-click checkouts to streamline the online shopping experience for their customers. Experts are now predicting new integrated security and enhanced service options for one-click payments, including BNPL or insurance for payments.

A Rise in Embedded Finance

Embedded finance allows companies to offer a line of credit without having to leave their own platform. This includes buy-now-pay-later offers and other forms of accessible credit, such as 0% APR and monthly payment schemes for high-value products. On Black Friday in 2021, BNPL payments through PayPal saw a 400% increase year-on-year, and it is expected that this will continue to increase in 2022.

Increased Open Banking

Traditional high street banking was already facing stiff competition from new business models that allow customers to retain control of their personal finances while connecting to financial services online. With branch closures throughout the pandemic, this has only accelerated. Banking-as-a-Service is expected to grow in 2022 and beyond. While this is undoubtedly a welcome development, there is a recognised need for regulation of these services.

Mainstream Adoption of Web3

Web3 refers to potential changes to the way the internet works, specifically through decentralisation using blockchain. This eliminates the need for financial intermediaries, giving consumers and businesses more control over their digital assets, both tangible and intangible. Experts are forecasting an increase in Web3 solutions in areas such as consumer protection, usability and accessibility, driving increased consumer confidence.