When it comes to the latest trends and developments, the FinTech field is one that’s rapidly changing and evolving. With this in mind, today, we’re looking at five of the hottest new FinTech trends of 2022 you should know – and how these may change how we all use financial services looking to the future.
What is FinTech?
First of all, we need to consider what the FinTech industry is, what changes within the FinTech industry represent, and what the latest Fintech new trends might mean for you.
FinTech is actually a combination of two words: financial technology. As a result, the FinTech field largely relates to the growing digitalization of financial services in recent times, which has played a significant role in how we use traditional banking services.
FinTech is big business. In fact, as explained by Forbes, around 64% of cities around the world have already adopted FinTech solutions – a massive jump compared to the 15% of cities using FinTech in 2015. What’s more, around three-quarters of consumers have used FinTech solutions at some point in the last year – and this includes systems such as money transfer technologies.
With such a rapidly growing influence across the financial world, it’s easy to see why so many people are keeping a close eye on FinTech solutions, as well as cryptocurrencies (which arguably fall into this same bracket).
This growing demand for financial technologies is something that we, as specialist digital marketing and influencer outreach experts, also keep a close eye on. And, with this in mind, we’ll momentarily consider some of the many different trends that are taking the world by storm when it comes to the FinTech field.
The 5 Hottest New FinTech Trends of 2022
There’s a massive shift occurring in the FinTech field at present, and this is something that everyone – regardless of whether or not they are directly involved in the industry – should be following.
With this in mind, we have outlined some of the five most prominent new trends within the FinTech industry as follows. Hopefully, this will help you find out more about how the industry is changing – and what this might mean for businesses and individuals, both online and in the physical world.
#1 Cryptocurrencies Are Gaining New Exposure
Cryptocurrencies – they’re not a new FinTech solution, but their staggering growth in demand is something we’ll definitely be watching with interest in the coming year.
Indeed, as far as FinTech trends go, this is potentially one of the most revolutionary since even traditional businesses and shops have begun branching out and accepting cryptocurrency payments (or otherwise utilizing blockchain technologies).
Perhaps one of the most obvious recent examples of this was Tesla’s support of Bitcoin, which saw the value of Bitcoin spike massively (before subsequent drops). However, other traditional businesses such as BNP Paribas have also begun looking at blockchain technologies recently, which may offer new opportunities for crypto traders.
#2 Streamlined Loans and Mortgages
Another prominent change that is drastically impacting both individuals and businesses (for better or worse, depending on your perceptions) is the increase in online lending solutions. Indeed, with the growing rollout of FinTech solutions, fewer and fewer businesses are having to meet potential customers in person.
Instead, the use of live chat and chatbot functions are streamlining traditionally necessary meetings, allowing customers to get a potential quote for their loan or mortgage applications in a matter of minutes. Of course, this often still needs to be verified, but it’s certainly speeding up the process of applying for a loan or mortgage and is hence making these potentially more accessible to customers overall.
Thanks to robotic advisory support, this streamlined process is definitely playing a significant role, and as time passes, it’s likely that this trend will continue. As such, it could be interesting to see how the world of lending changes in the coming months and years, and it may even get to the stage that we won’t need to meet in person with lenders at all before obtaining lending solutions.
#3 Embedded Finance Systems Will Continue to Grow
One of the most recent FinTech trends that has played a significant role in buying and spending is the invention of embedded finance systems. Embedded finance systems, more commonly referred to as the “buy now, pay later” model, are simple and rapid ways for individuals to obtain financing on their purchases. And, in many cases, these models can offer highly appealing opportunities, with low or zero percent interest rates and almost unrivaled ease of use.
One of the most apparent features of embedded finance systems is their integration with non-financial platforms. For example, a growing number of retailers are offering automatic Klarna and AfterPay support, which can help customers purchase their newest goods on a lending basis, rather than having to wait around with the faff of traditional lending solutions.
Whether or not the implementation of buy now, pay later schemes is a good thing often comes down to individual perceptions. Nevertheless, it’s safe to say that it’s becoming easier than ever to get a small loan for purchases that we might never have considered loans for previously.
#4 Forex Trading Opportunities are On the Increase for Small and Medium Businesses
For small and medium businesses, one of the most recent new FinTech changes and trends that is offering new growth opportunities is the increase in international Forex trading. Indeed, with the staggering jumps we’ve seen as of recent in online shopping, more and more businesses have also had the opportunity to expand into international markets.
Now, it’s estimated that cross-border Forex transactions and trading will increase by around 5% annually and could grow to over $156 trillion in value this year. That’s no small sum of money and is something that small and medium enterprises could definitely capitalize on for their own growth and marketing efforts.
#5 The Rise of Digital Banks
A final key trend we expect to see more of for 2022 is the rise of digital banks, otherwise referred to as neobanks. The neobank sector was already worth over $30 billion by 2020. What’s more, predictions have been set that estimate the sector’s annual growth in the region of 47.7% for the coming decade or so.
With this in mind, it may not be unrealistic to imagine the neobank sector achieving a value of around $50 billion by the end of 2022. This will likely continue to drive new customers to digital banks as we look forward.
Of course, the question then remains: how will traditional banks evolve to meet these new demands, and could this spell a complete revolution in the ways that we save our money overall? Only time will tell, but we’ll be watching with great interest to see what happens all the same.
Final Thoughts on New FinTech Trends
The FinTech field is massive, and changes within FinTech undeniably influence countless other industries and individuals. Today, we’ve summarized some of the five hottest new FinTech trends of 2022 thus far that everyone should know about. However, in such a rapidly evolving and changing field, it seems likely that further new changes may be yet to come about in the coming months, as well.