Digital Fintech Trends in 2022; Digital-only Banks will Provide Pragmatic Approach
Digital-only Platforms and Open Innovation Tailwind for Fintech
Most prominent fintech startups are trying to overcome vulnerabilities caused in this era of banking 4.0. Companies are pushing their capabilities more towards profitability than popularity by diversifying their offerings and services, adopting open innovation, monetizing open opportunities, and orchestrating their ecosystem with collaborations. A plethora of opportunities emerging after a pandemic, new digital payments, and the rise of e-commerce (Which e-commerce technology best resonates with your business?) showed continued innovation and agility even in times of pandemic.
Fintech matured with the era of digitalization, which saw regulation, customer trust, digital capabilities, open innovation, etc., as support to financial institutions to survive in the fintech 4.0 era which is more personalized and fulfilling their business goals. The digital-only subsidiaries are nurturing their new ventures, which in the future will drive long-term growth and driving revenue.
Fintech Trends for Digitalization of Payments and Services
It became the need of the hour for banks to ascend with the next wave to scale down the banks and financial services to mobile phones, iPad, tablets, or smartphones. What the future holds for 2022 will be interesting. So here are some fintech trends to keep an eye on:
- AI and ML for Prediction: Financial fraud detection and asset management are the main use cases of ML in fintech. The analytical capabilities allow fraud detection in the financial and banking industry.
From a customer support perspective, AI helps in credit risk management and financial performance analysis. Data in financial firms become more prominent in tracking risks in digital transactions.
- Digital-only Banks for Real-time Access: Digital-only provides banking and financial facilities through digital platforms such as mobile, tablets, iPad, etc. These virtual banks usually utilize cloud-based infrastructure for their core services along with support and operational activities.
Cloud technologies are still not used for core services in fintech but biggies are now adopting cloud for billing, credit, regular banking, customer payments, etc. Frontline digital platforms need cloud technology that eliminates these barriers and can be more responsive to a rapidly changing market by simplifying onboarding and deployments.
- Data Aggregation for Connected Financial Services: Data aggregation has surpassed screen scraping in fintech which uses an API that brings aggregated financial and investment data to provide data connectivity and make it tokenized or credential-free, to increase user experience and customer satisfaction.
With fintech application development rising, APIs have emerged as a significant part of financial data sharing. These APIs also enable fintech service providers to provide additional services.
Unsurprisingly, with the need for market fluidity and greater emphasis on technology, traditional institutions investing in fintech technologies are growing at an exponential rate.
To know more about the trends in detail, click here.
Digital Platforms will Impel Embedded Finance in Future
Digital platforms are better positioned in fintech companies than ever. Customers now expect digital platforms to better meet their needs. As more non-traditional players enter the fintech segment, we can expect greater adoption of embedded finance (seamless integration of financial services into a traditionally non-financial service) by companies that will be a pickup stream for fast and hassle-free financial services, thus improving customer experience (CX).
This will tend to reduce the barrier to the adoption of digital platforms and enable SaaS companies to add financial services to their core software products in a vertical market that will leverage financial services to solve the majority of their problems and enhance customer experience.
Integrating customer-focused solutions into softwares is always our priority. Techment Technology provides a seamless experience through the integration of different services through softwares for fintech companies. Get in touch with us for collaboration.