5 FINTECH TRENDS TO WATCH IN 2022
Impacts of the pandemic changed not only people’s livelihoods, but also buying behavior. Those changes affected banks and financial companies, so that they are facing a challenge to find newer and more suitable solutions. For this reason, the following 5 trends are expected to shape fintech this year and beyond.
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The rise of digital/ neo banks
Neobanks are fintech firms that offer financial services using smart devices, apps, software and other technologies without physical branches. In 2020, Global Neobank is valued at $30+ billions, and expected to raise 47.7% for the next 8 years.
2. Real-time cross-border payments
Currently, more than 60 countries are using a real-time payments’ system. In fact, between 2020 and 2024, half a million of transactions are expected to be made and this number tends to increase by 40% every year.
3. Open banking
Based on API technology and using customer data, commercial banks are now available to offer their services and products without any barrier. Financial professionals believe banks that don’t support open banking are limiting their opportunities to develop and offer more excellent service to customers.
4. Artificial Intelligence (AI) and Machine Learning (ML).
Machine Learning tools let us process big data, succeed at making conclusions and even save time. Fintech is one of the industrial sectors that can gain from ML. According to the IHS Markit report, the business value of AI in banking is projected to reach $300 billion by 2030. Also, the percentage of Chatbot users will stand at 79% by 2023
5. Banking-as-a-Services (BaaS)
BaaS is a platform that provides more financial services by collaborating with non bank financial institutions.
During the last years, the BaaS platform has used an open banking concept to deliver service in an effective way. Financial institutions and fintech companies tend to work together in order to bring leading-edge technology and improve product and service quality, using BaaS.
Эх сурвалж: thepaypers.com