The pandemic and fast technology development made their impact on many traditional businesses, including the financial services industry.
Nowadays, companies need to come to terms with new realities and increased customer requests.
Meanwhile, a new generation of tech-driven startups keeps making breakthroughs, changing the rules of the game forever.
Modern customers want to have instant access to services via their smartphones from any place. Ever-growing rates of digitalization result in geometric growth of the data amount generated per customer.
In this article, specialists from Payday Depot go over the main trends in the FinTech market of the year 2022.
Find out what influence they will have on the industry, from mega-corporations to small local service providers.
Mobile Banking
Having a bank available at arm’s length is extremely convenient and has become a norm over the past few years.
With over 80 percent of the population owning a smartphone, banks take advantage of it to become more involved in their client’s everyday life.
In 2021, the mobile banking market generated $693 billion in revenue, and the installation rate of banking apps reached almost 8 downloads per second in 2020.
Online banking allows banks to cut expenses, as it’s cheaper for them to provide services this way than have people coming to their branches.
Paired with the increasing popularity of contactless payments via phone, this trend has resulted in fewer people carrying plastic with them, meaning both online and offline payments are now done using mobile devices.
Online stores have been already doing their best to provide easy and safe shopping for mobile users.
Big Data and Machine Learning
Artificial Intelligence has always been an area of interest for financial services. Insurance scoring, risk assessment, and fraud prevention are all repetitive work that requires processing a lot of data – a perfect field for computer sciences. Using machine learning makes this and many other operations cheaper and more precise.
Though applying AI can help save money, implementing and maintaining it cost a fortune. As a rule, only top players on the market allow themselves the luxury to use it.
As the demand for automation and working with Big Data keeps growing, it’s safe to assume that cheaper and ready-made solutions in this field will emerge in the coming years. This way, even middle-scale companies will be able to take advantage of AI.
Blockchains
Think of blockchain as a way to organize and store data with some differences from general databases:
- Blockchains are distributed (data is not stored in one place).
- They are secured with encryption.
- Data changes are impossible without mutual consent.
Cryptocurrencies utilize these characteristics to create financial systems with better fraud protection, more transparency, and increased speed of transaction clearing.
Banks and other financial institutions are now also tailoring blockchain to their demands. With its help, they achieve unprecedented levels of connectivity and programmability between products, services, and holdings.
Technological advancement
As you see, the financial industry keeps pace with technological advancement and makes good use of its latest achievements.
For customers, it will result in easier access to financial services, upgraded customer experience, and enhanced safety of transactions.
With the rapid pace of digitalization, further groundbreaking innovations are just a matter of time.
