FinTech trends for Year 2022

Some of the top FinTech trends that are going to manifest themselves in Year 2020 are:

• 1st Trend: Accelerated adoption of Voice Technologies:

AI-powered voice technology started with the weather forecast or play a song.

But slowly, it's usage entered in the financial services sector to improve customer service.

AI-powered FinTech voice assistants promise convenient availability of where you are. FinTech are making it available for transactions such as recurring payments, fund transfers between accounts or send money to people via digital platforms like PayPal, etc. In year 2022, the adoption pace of voice assistants is expected to grow and make it's presence felt.

• 2nd FinTech Trend: Open Banking

Banking users want to take control of their data and want to share it with more ease; but in a far secure manner. This is where role of Open Banking comes in. Though the trend got it's due importance notices in year 2018, but its mass adoption is going to become a reality in Year 2022. Regulations like PSD2 (Second Payment Services Directive) are forcing banks to release financial information in a secure, standardised form. And now, banks are taking initiatives to embrace this trend with help from FinTechs.

The networking and collaboration between banks and FinTechs are resulting in many digital transformation initiatives to provide customers with a much-needed consolidated view of their financial profile (accounts, transactions).

• 3rd FinTech Trend: Cognitive Finance

The banking customers want to invest their money but find it over-whelming in-terms of need to study and evaluate competing investment options. Also, many of the investment options require quick decisioning which many find it difficult- because of lack of in-depth knowledge about financial concepts and lack of available time. This is where FinTech are working on Cognitive Finance solutions that reduce cognitive overload for the user by automating the financial decision-making process with Artificial Intelligence (AI) and Machine Learning.

FinTechs are making Cognitive Finance work not only for the customers, but also for the banks on how to approve the loan at more favourable interest rates, or what to do with the overdrawn account.

Cognitive Finance surfaced from chat bot based advisors for financial planning (e.g., facilitating setting up practical retirement goals) and wealth management. Now, it is offering automatic-saving applications. Cognitive Finance solutions use AI/ML algorithms to evaluate the available options and assist the user in leveraging the most useful ones.

• 4th FinTech Trend: Hybrid Cloud Adoption

Most of the FinTech solutions are public cloud based whereas bank's core applications reside in private data centers. FinTech agility is causing induction effect. Banks have started their journey towards cloud adoption. Banks are migrating their customer facing workloads onto public cloud while modernising their core banking applications by adopting cloud-native platforms in their data centers.

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