Financial Technology trends in 2022

assets/files/images/24_11_21/Image-2.jpg

This article is brought to you by Retail Technology Review: Financial Technology trends in 2022.

By Darren Harrison, freelance writer.

Financial technology has been with us for longer than it may seem. The first appearance of financial technology was back in 1969 with the invention of the ATM, installed at the Chemical Bank in New York. Nowadays, paying for something with a mobile, transferring money online, buying insurance, and using online banking apps are some ways that we all use fintech every day. The scope of financial technology is massive, and it looks like it will continue to grow in 2022.

Here are some of the fintech trends to watch in 2022.

Robo-advisors

Robo-advisors use algorithms and mathematical controls to provide financial advice and analysis. Robo-advisors, as explained and ranked by CNBC, have been around since 2018. However, their services improved massively after years of development. These modern-day online advisors now take care of the most advanced financial tasks, such as choosing investments and retirement planning. It is expected that by 2025, over $2 trillion worth of client assets will be managed by robo-advisors. Although traditional advice services are still highly sought after within the market, it is predicted that independent advisors will increasingly utilise robo-advisors with improved personalisation and reporting.

Banking and Personal Finances

Traditional banks are continuously adapting and changing their business model to keep up with the fast-moving fintech industry. The average person now expects banking services that are highly personalised, extremely fast and straightforward to use. More and more financial organizations are offering services, from investment to lending, through online platforms or apps such as Acorns. The use of artificial intelligence for banking has become the norm for most banking institutions. It is predicted that AI’s will increase in popularity and will be one of the biggest fintech trends in 2022. With the use of AIs, banks can process information faster and provide instantaneous responses.

An increasingly popular way that AIs are utilised in banking is in the mortgage application process. With an online mortgage broker such as Trussle, AI provides comparisons and calculations for users to understand the best mortgage choices on the market, depending on each user's needs. Aside from the quick turnaround of results, one of the outstanding benefits of this evaluation process is that it minimizes the chances of human error.

Blockchain

Blockchain is a type of Distributed Ledger Technology. This type of fintech is a decentralized ledger managed by multiple participants. This ledger is a way of recording information in such a way that it is extremely difficult to hack or change, as each transaction is distributed across the entire network of online systems on the blockchain. Blockchain technology is set to continue to revolutionise the way we bank in the future. It is predicted that digital assets will be a viable alternative to fiat currencies within the next five years. An example of how blockchain continues to evolve is the rise in popularity of non-fungible tokens. NFT’s are a way of selling and buying digital assets that act for real-world objects.

In 2019 75% of customers globally had adopted some type of fintech service, and the rate of adoption is set to grow even further in 2022, making money management more accessible for everyone.

Add a Comment

No messages on this article yet

Editorial: +44 (0)1892 536363
Publisher: +44 (0)208 440 0372
Subscribe FREE to the weekly E-newsletter