Top Fintech trends 2022

Quick Summary: The pandemic brought significant changes in how people see and operate in every sector. The Fintech sector grew significantly due to the need for secure and remote financial transactions. 

The preference among users for digital payments surged exponentially. With 25.6 billion real-time payment transactions in 2020, India witnessed a 70% increase from 2019. Thus, there is a growth in demand for Fintech applications. 

Upsquare technologies, as the top Fintech app development company, develops various fintech applications using the most advanced financial technology and trends. Trending technologies are advancing each sector, making customer experiences more convenient and secure.

Learn about the latest tech trends in the Fintech sector. 

What is FinTech?

FinTech (Finance + Technology) uses advanced technologies to develop innovative solutions to enable people to manage their finances more efficiently. The next-gen technologies include artificial intelligence, Blockchain, etc. 

Top 10 Fintech Trends 2022

Digital-First Banking and Neobanks

Standing in long queues to make a single fund transfer could be better for the current generation that prefers ultra-fast services. With long waiting times, limited working hours, and a lack of security in traditional banking, more people are switching to neo-banking. The Fintech world has brought innovative solutions for many problems in conventional banking. 

Online fintech applications enable people to make transactions remotely and avoid the crowd in bank branches. With neobanks, all transactions can be done online, from signing documents to opening a bank account. 

Moreover, people can make quick, convenient, and secure financial transactions online. Digitization of financial transactions also lessens the burden on banking staff. Let us look at other benefits of digital-first banking: 

  • Lower fees
  • Enhanced online experience
  • Convenient & Secure Transactions
  • Real-time data access
  • Automation of Tasks
  • Cryptocurrencies

Cryptocurrency has brought innovations in the financial technology sector. The global cryptocurrency market has increased by 900% from March 2020 to Feb 2021. It is expected to reach $5,190.62 million by 2026 at a CAGR of 30%.

People are showing interest in digital currencies; thus, their usage has also surged. People are investing more in digital currencies, the primary reason being security. Moreover, more banks are going to offer complete digital solutions. 

Blockchain

Blockchain has brought a massive impact on banking transactions. With the decentralized finance philosophy, Blockchain focuses on reducing centralized procedures. 

Many online peer-to-peer financial platforms use blockchain technology and a decentralized manner for financial transactions. In addition, distributed ledger technology is improving procedures and systems. More banks are using blockchain technology to reduce the costs of financial transactions. 

Advantages of Blockchain:

Smart Contract

Smart Contracts are self-implemented, secure contracts that allow individuals to enter agreements without needing any middlemen. Users can use smart contracts by paying the fee and electronic key code. 

Supply Chain

Blockchain technology makes supply chain transactions transparent and helps access all the information about the suppliers, goods, and costs in one place. 

International Currency

With blockchain technology, users can easily make international payments. The transaction fee for blockchain transfers is very low. 

Big data management

Financial organizations deal with massive data collected in structured and unstructured ways. The data can be bank forms, loan applications, bank statements, etc. 

They must process the unstructured data to identify significant trends and potential risks. They use analytical tools to examine this data to make better strategic decisions. Moreover, essential data insights help identify new opportunities and mitigate potential risks. 

Fintech developers are focusing on developing applications to help financial organizations extract data accurately and efficiently. This software helps in cleaning images, aligning documents, and recognizing forms. Fintech applications help organizations extract the cleanest data effortlessly. 

Contactless Payment

The pandemic brought a boom in the digital payments trend. In 2020, the UPI payments doubled as everyone prefers contactless payments to maintain social distancing. Almost every bank is linked with a contactless payment gateway and application. 

People can quickly transfer or exchange money through their smartphones. The wallet applications allow online transfers directly or by scanning a QR code. The contactless payments trend has now reached every nook and hook. All is possible with a UPI, whether a grocery shop payment, a sweet shop payment, or a bank transfer.

AI and ML-Powered Fintech

The Fintech applications use AI and ML technologies to bring automation to financial transactions. Artificial intelligence and machine learning tools help financial transactions speed up day-to-day transactions, streamline workflows, enhance productivity, and maximize customer satisfaction. Financial organizations and other companies use AI tools like chatbots, voice assistants, etc., to provide better customer service. 

Fintech-as-a-Service

Many organizations prefer to avoid huge investments in developing fintech applications from scratch. Saas-based fintech apps are the perfect option for them. 

Fintech applications offer functionalities that automate routine transactions—for example, billing management, transaction processing, payment regulations, etc. Thus, saas-based fintech applications enable enterprises to access advanced technologies at cost-effective rates. 

Autonomous Finance

Autonomous finance automates financial transactions using artificial intelligence to reduce the burden on customers and staff. It uses AI and ML to learn from the environment and make decisions without human intervention. Thus, users can delegate recurring tasks to such fintech solutions and free more time for themselves. For example, users can automate transactions like paying bills, insurance premiums, etc. 

Financial Literacy

The new generation is keen on learning about finances and being financially independent. Financial literacy plays a significant role in this transformation. If people are better informed about finances and how to utilize them wisely, they can make confident and correct decisions. 

Fintech applications enable people to learn more about finances and manage them well. Fintech tools guide users with basic standards and guidelines. 

Voice Technologies

Businesses in all sectors focus on customer convenience, and fintech is no exception. Advanced technologies enable enterprises to deliver solutions that enhance customer satisfaction and ease. 

Voice technology in the Fintech sector helps users manage financial tasks efficiently. They can command their phones to perform any task or listen to the instructions aloud for better understanding. 

Conclusion 

With a rapid shift towards digital financial transactions, the opportunities in the fintech sector are increasing. More people are now relying on fintech applications for payments, transfers, applying for loans, and opening a bank account. 

Fintech applications offer excellent reliability and security with ease of performing tasks. Thus, more financial companies are investing in fintech applications to boost their business and maximize customer satisfaction. 

Upsquare technologies is one of the top fintech app development companies in India, the USA, the UK, and Canada, with over a decade of experience. The certified Fintech app developers hold proficiency in using AI/ML and other latest technology trends to build top-notch custom Fintech applications. We offer flexible engagement models, enabling you to hire dedicated Fintech developers and programmers to suit your needs. 

Call us at (+91) 079-4602-9221 to learn more about our fintech app development services and book a free consultation.

Share Now