As technology advances, so do customer needs. This encourages fintech companies to keep up with the times and actively provide in-demand services.
The past year has given impetus to a notable transformation in fintech and highlighted issues that need to be addressed in the near future.
We will look at what fintech development trends are expected to be like in 2022.
Cryptocurrency and CBDC will attract even more investment
Every year the popularity of cryptocurrency is increasing. It is becoming more and more understandable for the average person.
It can be expected that the cryptocurrency investment boom that began in 2021 will continue. According to Fast Future, the capitalization of the crypto economy will skyrocket to $7.5 trillion in 2022. Recall that last year this figure was 3 trillion. .
At the moment, more than 60 central banks have engaged in the development of CBDC. This is evidenced by the PwC report. So, the Bahamas launched a “sand dollar” – Sand dollar – back in 2020. The project can be considered successful, as the inhabitants of the islands actively use the digital dollar.
In the same 2020, the Chinese Central Bank began testing the e-yuan. And now the country is waiting for the official presentation of the currency, which will take place in February during the 2022 Winter Olympics in Beijing.
The digital currency will continue to grow in popularity. More and more countries are planning to issue their own CBDC. According to experts, by the end of this year, more than 25 countries will have their own digital currency.
Cryptocurrency Law: Strengthening State Control
The growing popularity of cryptocurrencies is drawing increased attention to virtual assets from regulators. States seek to adjust the rules of the game in the cryptocurrency market under their own regulatory framework.
China has imposed a ban on mining, and Estonia has tightened the rules for the operation of cryptocurrency companies on its territory.
Many central banks are afraid of losing control over the money supply, so there is a negative attitude towards cryptocurrencies. This trend is likely to continue in 2022.
Cybersecurity and data protection as the main task of fintech companies
Passport data, phone number, insurance policy number, email, income statements, addresses, bank details – now banks and financial organizations have all this information. Accordingly, they may also end up in the hands of cybercriminals.
Therefore, the company will pay increased attention to cybersecurity and the safety of user data.
Neobanks significantly expand their geography
The trend of development and emergence of neobanks will continue. This is due to the desire of customers to access banking services online and save their own time.
In 2021, the total number of neobanks worldwide exceeded 250 institutions.
If we talk about European neobanks, then the TOP-10 list, as a rule, includes N26 (Germany), OakNorth Bank, Monzo and Revolut (Britain), Numbrs (Switzerland), as well as Starling Bank, Atom Bank, Monese, Tandem Bank, Cryptorium. Round-the-clock access to user wallets and ease of management remains the main advantage of digital banking, which drives more and more new investments in this area.
According to the latest research, by 2024 the number of online banking users will reach 2.5 billion people.
We have briefly described the top trends that will be observed in the fintech services market in 2022 and we can note the main thing: demand creates supply. Companies around the world are customer driven. And this means that in an effort to provide newer and better services, the financial technology market will continue to develop.
