By the first half of 2021, the fintech sensation had gripped the entire world. Since then, this movement has only picked up pace and is set to gallop further as we journey onward to 2022. This phenomenal momentum has really been a product of many things. Mostly, the coming together of new-age technologies, the potential of data, and advanced analytics which has helped a plethora of fintech companies to redefine the banking and finance industry this year.
Here are the likely trends in fintech sector in 2022:
1. End-to-end digitisation
The most pivotal trend in the fintech segment is end-to-end digitisation. This transformation will aid financial organizations and banks in ensuring hassle-free operations pertaining to activities data gathering, analysis, and administration. With business efficacy rising, the workforce also will reap further benefits of automation. As digital lending platforms streamline the entire loan servicing process, automated fintech platforms will extend reliable and fast-paced credit approvals.
2. The shift to non-tier-one markets
On account of the rising smartphone proliferation and internet access, people across Tier 2, Tier 3, and Tier 4 cities are displaying an increased preference for digital lending channels. With the all-expansive technological penetration, even users living in remote regions can now readily access digital lending platforms and credit solutions.
3. Cryptocurrency boom amongst investors
The pandemic proved to be an unprecedented catalyst that offshooted the The blockchain and crypto industry boom. This trend is set to accelerate further as cryptocurrencies and trading platforms, NFTs, alternative asset trading, and their support structures increasingly come to the mainstream fore. The coming times are likely to witnessed massive investments from big-league parties in these emergent fields.
4. Cybersecurity will become imperative
Due to the rise in digital transactions and the resultant surge in cyberattacks and ransomware, business investors and corporate stakeholders are aggressively campaigning for heightened cybersecurity. The Investor community is expected to invest heavily in deploying the latest state of the art fraud management systems, KYC, and passwordless safety to optimally secure all potential threats.
5. Rise of Blockchain in lending
Blockchain technology has seemingly revolutionized the fintech industry by facilitating safe and seamless financial transactions. Specifically, the Blockchain technology is slated to have the largest impact on banking, Over 48% banking associates are of the opinion that this next-gen technology will forever change banking as we know it from 2021 onwards.
The most notable fact about this new-age technology is that it is a modern decentralized finance paradigm that focuses on cutting down on intensive centralization. This helps in safely preserving all data assets with digitally with decreased risk liability.
6. The rise of Machine Learning and Artificial Intelligence
Today, Banks and Financial organizations across the globe are focusing on one thing most- Increased optimization of artificial Intelligence. Research shows that leveraging AI will enable Banking companies to decrease overhead costs by a significant 22 percent come 2030. It has been estimated that the total savings accrued can reach up to $1 trillion. Therefore, fintech players are set to go all-out on increased utilization of AI-systems from sophisticated chatbots to resolve a number of client queries to fraud-detection engines that can ascertain the authenticity of KYC docs, to other new-age features that can exponentially increase efficiency, productivity as well as the customer experience at the same time.
The pandemic has undoubtedly proved to be an unlikely incendiary for the Fintech industry as it has drastically morphed people's conception of money and financial security. With small businesses embracing technology and shifting towards digital payments, the fintech ecosystem has quickly become an integral part of the new normal due to the increased dependence on digital contactless transactions. The integration of AI, ML, and IoT within the Indian financial has led to a substantial Big Data explosion. As Analytics and machine learning become deeply embedded into BFSI processes, start expecting automated actions and more contextual, real-time decision-making in the coming times.
(Rohit Garg, CEO and co-founder, SmartCoin)
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