Technology has changed the way the market operates. It has introduced so many innovations that have impacted our daily lives. Whether it is about shopping online or automating a manual process that was taking a lot of time earlier, tech companies around the globe have made sure that the end-user experience only gets better and better.
The emergence of financial technology (Fintech) has provided numerous growth opportunities and business benefits to customers that are looking to derive the maximum value from their financial processes and operations. The coexistence of finance and tech will provide a much-needed boost to the market in years to come. The blog discusses some of the key trends in the fintech industry and how businesses can take full advantage to achieve next-level growth.
Key Trends in the Fintech Industry
Here are the top 5 trends in the fintech industry you need to watch out for in the year 2022:
- Digital Wallets
Digital wallets are the Fintech software that helps to provide effective financial services like a traditional bank. It provides consumers the much-needed flexibility and convenience which is missing when you perform transactions using a traditional approach. Digital wallets are a new way forward and will dominate the market in years to come.
- Artificial Intelligence and Machine Learning
Artificial Intelligence and Machine Learning are the two upcoming trends that have completely transformed the Fintech landscape. Fintech companies are involved in AI and ML software to provide better capabilities in improving and automating financial services. AI and ML provide faster processing of larger data sets using a data-driven algorithm approach. This allows companies to make accurate and detailed conclusions when providing data-related service offerings to their customers.
Implementing Platform-as-a-Service (PaaS) in financial institutions allows them to gain an edge in this competitive market. They can actively adapt to regulations without any delay. PaaS provides the much-needed infrastructure needs to perform a variety of tasks from team collaboration, resource management, processing of payments, and credit risk management. If you are looking for a complete infrastructure setup, then this is one option you just can not afford to miss.
- Adoption of Embedded Banking
Embedded banking is the process where financial solutions are integrated with a business platform or app using APIs. This means that you will see more and more fintech APIs
providing value-added services soon. So, rather than spending heavily on building financial institutions, it is time to invest in APIs that can help with great business value and growth in a short time.
- Regulatory Technology
The work of financial institutions is subjected to many regulatory laws, acts, and regulations that need to be complied with and followed. Companies need to keep accounting records, taxation records, and income details. They also submit the required documents to regulatory authorities on a time-to-time basis. The situation becomes challenging when you are operating in an international market. This is where Regulatory technology (RegTech) comes into the picture. RegTech is a platform that allows organizations to comply with industry regulations. Regulatory technology also ensures that any issues that do not comply with the rules can be made compatible with the system.
Blockchain technology is all about the distributed database or electronic ledger. Each transaction is recorded as a separate block attached to the previous blocks in the network. It is impossible to change, delete, or modify any information entered by the users and this is what makes this technology even more secure and reliable. A transaction is possible only when it is approved by more than 50% of the participants. Apart from the above-listed fintech trends, there are some other trends such as cloud computing, virtual cards, Robotic process automation, and biometric authentication that comes in handy if you are looking to evolve and upgrade your existing technology stack.
Fintech is an ever-growing industry that provides ample growth opportunities and helps to improve the existing financial solutions. As technology and ways of working continue to evolve, it is important to stay on top of key industry trends so that you provide your customers with the next level of growth and innovation. Companies that will utilize the fintech concepts will stay ahead of the rest of their competition and will lead the technology innovations in years to come.
Axeno has extensive experience in Fintech domain. We have global clients satisfied with our professional services and quality delivery. This is possible because we have an expert team of developers, technical architects, UX strategists, and UI designers to bring ideas into reality. To know more about our work, mail us at [email protected].