FinTech Market Estimated Growth in 2022

0
136
FinTech Market Estimated Growth in 2022

FinTech Market Estimated Growth in 2022

FinTech Market Estimated Growth in 2022: The increased use of mobile devices coupled with the Covid-19 pandemic has highlighted how fintech can improve the customer experience by facilitating payments and banking. Artificial intelligence and operational advancements offered by open banking allow for greater agility, efficiency and accuracy.

With these new developments, we determine how we believe the fintech market will grow in 2022.

Trends reshaping the fintech market

Digital Banking

Consumer demand for more efficient ways to access banking records and complete financial transactions outside of local branches has fueled the growth of digital banking.

According to CACI, the rise of digital banks will result in a 36% decline in bank visits from 2017 to 2022. Benefits of this change include real-time analytics, proper expense management, quick balance review and PIN resetting from home.

The need for convenience and faster service is expected to increase the use of digital banking among millennials and Gen Zs, with older generations choosing the physical bank option as we move into 2022.

artificial intelligence

The global AI in fintech market is expected to reach $26.67 billion by 2026. Banks are currently fine-tuning their AI solution strategies, which will increase the wider acceptance of AI in the industry. According to Autonomous Research, AI is expected to reduce bank operating costs by 22 percent by 2030.

Banks and fintechs have benefited from AI and machine learning, allowing them to process large amounts of data about their customers. This data and information is compared to get results about the right services/products required by the customers, which has mainly helped in the development of customer relationship. The adoption of AI allows financial institutions to deal with the growing threat of financial fraud, cybercrime incidents and other security related issues.

With data and cyber security being critical components in the digital transformation process, the use of AI is expected to increase in 2022 and beyond.

Digital payment

Payment innovations in fintech include mobile payments, mobile wallets, contactless payments, identity verification technology and AI and machine learning for security. Mobile payments skyrocket in 2021, reaching $4.6 trillion by 2025.

Due to this more convenient and secure mode of payment, cash is expected to become the least common payment method worldwide by 2022. The change will also increase cashier-less stores, buy now, pay later and cross-border payments.

Open Banking

Open banking is another significant technology that enables banks to understand their information in an organized, secure manner, allowing data to be shared between financial institutions. Between 2020 and 2024, the number of open banking users worldwide is expected to grow at an annual rate of nearly 50%, with Europe being the largest market.

Improving the customer experience is central to fintech goals, evidenced by the growing appetite for open banking, in which customers allow third-party providers to use their bank-held financial information to inform new products. This need will only increase as we move into 2022.

Blockchain

The global blockchain technology market is expected to reach $3.67 billion in 2020. It is expected to grow at a compound annual growth rate of 82.4 percent between 2021 and 2028. (CAGR).

The growing acceptance of cryptocurrencies across the world is one of the major factors driving the growth of the market. Blockchain technology is now used by commercial and central banks around the world to process payments and issue digital currency. Compared to traditional systems, the technology enables less expensive and faster cross-border payments.

In 2022, the growing use of blockchain will result in the rise of national cryptocurrencies, the implementation of NFTs, and the use of blockchain as a service.

Leave a reply