Top Fintech Trends in 2022
Fintech has changed the dynamics of numerous industries across the globe. With the advent of internet, we have seen continuous advancements in the financial sector, making transactions secure, quick and transparent. From banking and insurance to other financial services, fintech is evolving quickly, helping business owners, companies and consumers to manage their financial process and operations effectively.
Fintech has made financial services more consumer-oriented, providing solutions to various industries including education, investment management, philanthropy and retail banking. The adoption of blockchain technology has the potential to make fintech solutions even more secure in the near future. Let’s look at the top fintech trends in 2022
The Rise of Digital Banking
Digital payments were encouraged a few years ago. But now, fintech is changing traditional banking system to virtual banks and there are numerous benefits for consumers by avoiding brick-and-mortar for the virtual world. Free-floating financial platforms and cloud banking have already made a big difference and the day is not far where the global banking system will be completely virtual.
Blockchain is Redefining Business Operations
Financial institutions are adopting blockchain technology and we are witnessing numerous blockchain-based startups and increased consumption of crypto technologies. There are various reasons why many industries trust blockchain.
It offers unbeatable security for both ends of the transaction using Digital Identity Management (DIM). Blockchain is also used to prevent frauds and overcome audit and regulatory issues. Blockchain can enhance the flow of payment, investments and asset transfer, while decreases errors and delays.
Artificial Intelligence and Adaptive Machine-Learning
The advent of artificial intelligence robotics and machine learning has reduced the risk of loan defaults, while improved risk management for financial services industry. Artificial intelligence has also enhanced operational efficiency, customer experience and data collection for financial service providers.
Increase in Cross Border E-Commerce
Due to the rise of inter-country trade, businesses are more vulnerable to cybercrimes and frauds. In this case, fintech plays a vital role to ensure the safety and convenience of payments. Additionally, covid has changed the dynamics of international business due to which international transactions have increased. Fintech services ensure easy fund transfers on a single tap, while ensuring maximum security.
Initially, the focus of fintech was on payment transfers from customer to merchant. Now, fintech is not limited to it. In fact, it is more focused on the payroll options like crypto payroll, salary on demand and early direct deposits. It would not be wrong to say that employees will only use fintech services for their salaries in near future.
We’ve seen so many scams and frauds where the victims have lost their credentials and money. But with the revolution of fintech, it is almost impossible to perform any fraudulent activity, thanks to the biometric security. Whenever you want to transfer a payment, credentials are not enough. You need to verify the transaction biometrically that reduces this risk.
It allows you to use the voice recognition and digital assistant like Siri that allow to hear the balance and make transfers. Most of the fintech startups seeking proof of concept (POC) use this as an option when they have a tight budget.
Similar to Visa and Mastercard, virtual cards have CVV code, account number and expiry date but they don’t have any physical existence. They are ideal as backup when the physical card is not working or found. The only disadvantage is that they might not work with every retailer. Setting up these cards is quite simple. You just have to download their mobile apps and you’re all set.
To conclude, fintech is a rapidly growing phenomenon solving problems and making lives easy. It’s not only increasing the convenience of making payments but ensuring security at the same time.
The story was originally published on Vocal Media.