By FintechNews staff
-We have seen dramatic growth in FinTech during the pandemic. As the banks shut down, people largely relied on virtual financial services. For example, in the United States, 59% of Americans use more fintech apps now than they did prior to the pandemic. With all these changes happening, we highlight 3 fintech trends that will shape the financial sector in 2022
1-Expanded contactless options: The COVID-19 pandemic brought contactless payment mainstream. MasterCard reported a 40% increase in the use of their mobile wallets during 2020, and we can expect this trend to continue in the future. There are several types to look out for in the months ahead, including QR code, peer-to-peer, and NFC payments.
-Autonomous finance: financial manegement technology, which uses artificial intelligence (AI) and machine learning (ML) to make financial decisions on behalf of consumers without direct human input. Autonomous finance uses automation to provide personalized, optimized experiences tailored to specific financial processes. Technically, the term revolves around self-driving funds. Autonomous financing apps will guide consumers on where to make investments and manage risks.
-Digital only banks: The adoption of digital-only banks is on the rise. Thanks to advancements in artificial intelligence (AI), biometrics, online banking, and cybersecurity, digital banking is now more convenient than ever. Consumers can now access a wide range of personal financial services and information, and do certain tasks within seconds on their devices. According to the Evolution of the US Neobank Market survey, 89% of Americans use mobile banking services, with 70% saying mobile banking is their preferred way of accessing their account. the neobank sector was valued at $30+ billion in 2020 and is projected to grow at a Compound Annual Growth Rate of 47.7% over the next eight years. Neobanks are also attracting the unbanked customers with a combined purchasing power of $1.2 trillion.
-Blockchain technology: blockchain is not just about Bitcoin. It is basically about decentralization in finance. Blockchain is a distributed ledger system where one can’t change records without everyone’s knowledge and consensus. It promises to revolutionize everything from storing information about customers or transactions to keeping track of financial records and more. Fast, truly global in reach, and with low processing fees, blockchain remains on the path of totally changing the face of financial transactions worldwide. It has the potential to boost the global economy to $1.76 trillion over the next decadey (PwC, 2020).