Fintech Trends
Fintech Trends in 2022 and Beyond – What to Expect?: Digital and low-code banks are some trends to keep an eye on. If the last 24 months have taught us anything, no one knows for sure what the future holds. The Covid-19 pandemic and its variants did not leave any industry without suffering some kind of impact in these two years. But, without a doubt, the banking and financial market faced sudden changes.
As the world closed down, financial institutions and their partners were forced to automate banking services and make them more customer-centric. And now that a new year is just beginning, it’s a good time to look at the direction of the different technologies available on the market and what we can expect not only throughout 2022 but beyond.
Fintech Trends In 2022 And Beyond
With that in mind, here are six trends to keep an eye out for:
1. Digital Banks
Due to the change in consumer habits caused by the pandemic, the physical branches of large banks are becoming obsolete. Digital banking offers a better customer experience and offers faster and more efficient services.
According to a study, 83% of people already trust digital banks to the point of keeping money only in these institutions. It means that online banking has finally become a transformative tool in finance.
The good news is that digital banking isn’t just about going paperless and cashless – technologies have substantially contributed to the shift from a traditional centralized banking model to a more distributed, technology-driven one. Hence, the number of people who have accounts in digital banks is close to those who only have accounts in traditional banks: 42% versus 49% respectively.
Faced with the growth of consumption and online retail, the arrival of Open Banking, and the consolidation of Pix, it is possible to say that traditional banks are gaining increasingly stronger competitors, attracting more customers.
2. Low-Code
In 2022, software development outsourcing will use Low-Code solutions to accelerate the product development process and deliver a better user experience. This type of solution is becoming more popular in the software development industry and allows developers to build applications without having to spend time writing code.
Low-Code solutions are popular because they allow developers to create applications quickly and easily. It delivers a more reliable, simple, and intuitive product for the customer at a lower cost for the institution.
3. Focus on the customer experience
The banking industry is becoming a user experience-driven industry. Shortly, customer experience is expected to be a key differentiator for financial service providers and technology partners, both in terms of branding and in attracting and retaining customers.
Many banks prioritize the customer experience during their digital transformation, ensuring that engineered solutions meet all consumer needs in terms of convenience, security, comfort, and engagement. In turn, customers already expect more personalized offers, including using their comments and preferences to build a service that offers them even more convenience.
In 2022, the ability to anticipate customer needs and deliver great experiences will set banks, fintech, and solution providers apart from their competitors. Soon, advanced analytics will improve banks’ knowledge of their customers in such a way that they will be able to personalize offers and anticipate needs and improve service quality.
4. Cross-platform services
While customers’ preference for mobile banking has skyrocketed in recent years, that doesn’t mean they don’t like having choices. On the contrary, most customers need seamless multi-channel customer service, where they can switch between devices and screens but also touch points, including payments by voice, instead of typing and interacting with an application to help. Customers can carry out a banking operations conveniently, mainly with Open Banking.
5. Data aggregators
Platforms that aggregate data will increasingly be responsible for facilitating the way data is exchanged between financial institutions and their customers. This is what will happen with the basification of Open Banking.
The customer chooses which data he wants to share with this or that bank and between which accounts he will transfer funds in a single panel. Digital banks and fintech are expected to use this transparency to provide their customers with additional services in a user-friendly interface that brings benefits to customers.
6. Big data
In 2020, people created 1.7MB of data every second, according to data from a survey. Financial technology providers and their customers generate vast amounts of data that can be aggregated to provide a more comprehensive view of a customer’s financial situation.
Expect financial institutions to partner with data aggregator platforms to use big data to improve customer retention and services.
What do you conclude from these trends?
These six digital finance industry trends are likely to affect how banking is done in 2022 and beyond. In the coming years, customers will be able to access different types of banking services with much less friction than before.
The customer experience will be completely different from what is being offered today. Having a simple and hassle-free financial platform helps you adapt to changes and stay ahead of the competition. Digital banks need to rely on partners that provide Low-Code technology to provide customers with the tools they want quickly and reliably.
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