2021 was characterized as a return year for many global economies after the pandemic. Many countries are hoping that a full economic recovery will continue throughout 2022. Because of this, various financial technologies like other sectors are expected to grow significantly in 2022 and the years to come, providing investment opportunities for potential investors. In this article, we will look into some of the fintech trends that will have a significant impact on everything that has to do with money.
Blockchain
Blockchain is on track to completely transform the face of monetary operations worldwide, thanks to its speed, global reach, and low processing fees. The United States and China are the biggest beneficiaries of blockchain, with the potential to boost the global economy by $1.76 trillion over the next decade. The banking industry leads the way in terms of crypto market value distribution, accounting for 29.7% of total market value. Discrete manufacturing (10.9 %), process manufacturing (11.4 %), and professional services (6.6 %).
The rising number of people using blockchain digital wallets is easily combined with the optimistic momentum of shareholders aiming to expand the reach of blockchain services. The overall number of digital wallets in use worldwide is estimated to be around 40 million. This figure is up from 11 million in 2016.
AI Systems
It’s no surprise that banks quickly embrace AI with revenues exceeding national incomes. Banks are now perfecting their AI solution strategies to take things even further. This will accelerate the adoption and implementation of these systems in the sector. AI is expected to cut bank operational costs by 22% from 2022 on wards. This could result in $1 trillion in savings in the future. However, getting to this point will not be easy. Banks, like the rest of the world’s employers, are facing a scarcity of AI experts.
Payment Innovation
Several components make up fintech payment innovations. They include mobile payments, identity verification technologies, smart speaker systems, mobile wallets, AI, machine learning, and contactless payments. Mobile payments have grown since 2021, notably during the COVID-19 pandemic, when more payments went online. By 2022, in-store transactions are predicted to exceed 2.7 billion, raising the total value of global e-commerce transactions to more than $5.4 trillion.
Intensified FinTech Regulation
Finance is one of the most severely regulated businesses in the world. Governments all across the world will be intrigued by the introduction of blockchain in their countries. If a series of high-profile financial intrusions occurred, governments would naturally be worried. While blockchain investors may fuss about legislation that was not designed, no one will deny that security is a top priority in any financial service. For this reason, Financial technology regulation is expected to intensify from 2022 onwards.
Conclusion
So much change is expected in the financial world in the years to come. We can see that FinTech will revolutionize the finance industry in so many different ways. This will help by increasing the use of payment channels and providing credits which will help people worldwide conduct personal and business transactions amidst COVID-19.
