Forbes forecasts 6 Fintech trends in 2022

Despite the disruptions caused by the pandemic, 2021 will see the growth of the financial technology (Fintech) industry. According to CB Insights ' State of Fintech report , the third quarter of 2021 recorded an increase of 147%, a record increase of the Fintech industry compared to the same period last year.

As the world gets used to the new normal, the fintech industry is also undergoing transformations. Here are 6 Fintech trends in 2022 according to Forbes forecast.

Fintech impacts many areas of life. Photo: Freepik

Blockchain

The year 2022 is forecast to mark the time when blockchain technology and Web 3 become more secure and accessible. According to Deloitte's 2021 global blockchain survey, 76% of executives believe digital assets will be a powerful alternative or complete replacement for fiat currencies within the next 5-10 years.

Financial institutions are also attracted by blockchain's unmatched security especially in terms of identity management provided to both sides of the transaction. In addition, blockchain is also being used more and more to combat fraud.

The benefits of blockchain and the rise of cryptocurrencies can also lead to a growing demand for blockchain-as-a-service (BaaS) as companies look for innovative ways to digitize and contract. rationalize all areas of their activity.

Embedded Finance

Embedded finance is the broad field of payments, card payments, lending, investments, insurance, and banking. Embedded finance makes investing easier through access to funds and stocks.

72% of users of BNPL (Buy now pay later) apps said that using these services caused their credit score to drop. The biggest appeal to the BNPL market comes from millennial and Gen Z users.

The rise in popularity of buy-in, pay-later, coupled with the financial implications of the pandemic, could see the BNPL industry amass $680 billion in transactions by 2025.

Web3

Web3 is an idea for a new iteration of the World Wide Web based on blockchain technology, combining concepts such as decentralization and token-based economics. Decentralized finance allows peer-to-peer transactions and does not depend on any financial intermediaries such as banks.

In 2022, to further promote Web3, companies need to provide solutions to solve problems related to consumer protection, accessibility and use of services. This will create trust for the public and form a premise for Web3 to be applied on a large scale.

Cross-border e-commerce

The pandemic will cause major changes in 2021, and those effects will last until 2022. A recent study by Accenture shows that the total flow of cross-border payments worldwide is growing by around 5% per year. year and is expected to reach $156 trillion by 2022.

In light of the pandemic-driven e-commerce boom, international transactions offer huge growth potential for SMEs that previously served only the domestic market.

No matter where they order from, consumers expect an easy and simple payment solution. This need gives businesses a big advantage while also reducing the risk of payment failures. As this trend becomes widespread, consumers can expect real-time payment capabilities in 2022.

Super app

Superapps deliver vast, diverse sets of services and products on one platform. These services include transportation (like Lyft), retail (like Amazon), food delivery (like DoorDash), banking, entertainment... Customers can buy products and services using super apps. Simultaneously schedule appointments, make reservations, and send items anywhere.

Super apps like WeChat and Alipay already dominate the Asian market. In 2022, this trend will form in Western countries when many companies have ambitions to bring diverse types of services to consumers through a single application. In February 2022, PayPal's CEO said the company was building a super app that would provide "a connected ecosystem where users can organize and control data and information between apps."

Super apps are one of the trends forecasted by Forbes. Photo: FairMoney

AI and machine learning

Fintech companies can continue to expand their use of AI and machine learning from implementing automated advisors to advanced algorithms for assessing credit applicant risk.

AI helps predict consumer behavior and recommend products to improve the customer journey and automatically sell more customers. In addition, AI also saves businesses time and effort by handling frequently asked questions through chatbots. As a result, this technology frees up employees' time to focus on more complex tasks.

The 6 Fintech trends 2022 all have in common: making the lives of consumers and businesses easier. There are certain challenges in applying these technologies on a large scale, however, in the coming time, the deployment and synchronization of technology will bring many developments of Fintech.