Fintech companies needed to keep a pulse on emerging technologies in the past but the 2020 pandemic has accelerated the importance of making the global shift to new technology. Plenty of companies had to meet the rising demands of customers and employers. Now as the new 2022 year has started, it’s time to realize what changes will remain and what new alternations will be made in the world of financial technologies. Keep on reading to find out about the latest trends in global financial services.
Impact Of Technology on Fintech Services in 2022
The Internet revolution happened about twenty years ago when lots of new businesses and products were launched; new services emerged, while others vanished. Last year, the payday advance app could be considered a financial innovation, but today it is a common way to get financial support.
These days, we face a new revolution that will inevitably change modern fintech services and the whole sector. Companies and financial organizations have to adapt to new changes if they want to remain afloat and expand. Otherwise, some products and services that were useful yesterday may not be relevant in the future.
Business owners need to keep in touch with partners and customers if they want to keep up with the latest trends and utilize new opportunities for their growth and development. Among many of the latest trends and technologies, artificial intelligence, cloud, blockchain, and security technologies as well as machine learning will be used more often to obtain hyper-personalization and hyper-automation.
Some of the most widespread innovations of 2022 also include digital-only banking, automated payments, sustainable investments, etc.
The Latest Trends in Global Financial Services
#1 Customers in Banks Have More Options
There have opened several new banking options for consumers in the last few years. New technology and online services have become widespread for clients of Discover Bank and Chime. Online banking has become very popular among people, especially during the past two years when the COVID-19 started. New online banking options have been also seen in other industries. If any traditional banking institution wants to remain competitive, it has to implement innovations and new ideas. Sourcing new deals is a task, and it can take up a lot of your time; with Grata, you can take your deal origination to another level giving you an advantage over your competitors.
#2 Mobile-First Experience
This new experience is widely expected by banking clients in many countries. Since the current pandemic has started, many businesses and fintech companies had to switch to online services. More and more clients demand digital and mobile transactions that can be performed from their offices or homes without the need to go to physical institutions. This new tendency is seen apart from the fierce competition among new players in the financial sphere. Experts suggest that over 61% of banks and fintech organizations will become digital by 2024.
Customer digital experience is ranked as the number one challenge for many businesses and banks today. Clients want to conduct basic transactions and even open deposit accounts on the web directly from their mobile phones. So, this tendency is one of the priorities for fintech companies especially since the younger generation of clients wants to have a great in-app experience and a better online service.
#3 Artificial intelligence and Machine Learning
We have all seen significant changes in the way we do our banking during the past two years. Artificial intelligence has been adopted by many fintech companies lately. The role of AI is to make fraud prevention, assess risks, and automate services. In 2022, consumers will also notice further changes in this field. With so many big retailers, fintech organizations, and technological giants like Amazon, Apple, and Google, conventional banks will face even more competition. Thus, those banks and companies that want to remain afloat will have to adapt to new technologies and use AI for their needs.
#3 Cloud Computing
Another thing that companies should have to adapt to the emerging needs of their clients is cloud computing which allows organizations to have platform-as-a-service (PaaS) models. If the companies adopt new technologies or cloud computing, they will be able to save expenses on regular software and provide faster services to consumers. Only 18% of ventures used cloud computing several years ago, while in 2022 this number is estimated to rise to 28%. Over 85% of conventional banks and traditional financial institutions are reported to concentrate on PaaS services as an important tool for their growth.
There are many benefits of using cloud computing services today, and the local banks can’t ignore this information. If you use this technology you can take advantage of:
- Flexibility to build propositions faster
- Saving operational expenses by about 50%
- Increased asset and data protection
#4 New Revenue-Creating Areas
Companies that rely only on traditional revenue streams will most likely face issues this year. Modern financial organizations can’t count solely on these streams and need to create new areas for their revenue. Consumers and CFPB put pressure on the banks to eliminate overdraft fees which crushes a lot of money in revenue.
Some people assume that the Federal Reserve will have to raise the rate for federal funds in order to fight against inflation. Consequently, many fintech companies and institutions will face dramatic decreases in their lending volumes in 2022.
Hence, it’s essential for these companies to search for new revenue streams and new opportunities in different areas. One of the best options to boost revenue is to embrace digital strategies and offer more online-only services to consumers. If you focus on digital technology and such services you will have more chances to stay afloat in terms of finances and boost your profit.
In conclusion, technologies are constantly changing the world we live in. New companies and products emerge while others disappear as they couldn’t adapt to a new reality and the changes in the modern world. Those fintech companies and organizations that want to expand and grow their revenue need to implement new technology and follow these trends that will be extremely popular in 2022.
Institutions and companies need to adapt to the fast-changing world so that their products and services remain relevant to consumers. Innovative technologies and new trends have become tools to accept new challenges and utilize new opportunities for industry growth.
5# Artificial intelligence
Artificial Intelligence technology brings so many advantages and improvements that it was only a matter of time before it transformed the finance industry. AI allows to work with loads of data efficiently and minimizes the risk of human error. Artificial intelligence in finance boosts routine operations: fraud detection, risk management, and data analysis.