Despite the pandemic-induced delays, 2021 was a relatively strong year for growth in the FinTech industry. With all of us, businesses and consumers alike, still getting used to the “new normal,” it might leave us wondering what we can expect in the FinTech industry moving forward.
Well, we can only expect good things! According to the State of FinTech report by CB Insights, the third quarter of 2021 was the second-highest for FinTech financing. It experienced a whopping 147% increase!
You can take FinTech courses to delve deeper into these topics, but let’s first discover more of what to expect for the industry with these trends in 2022.
- Embedded Finance Soars
Embedded finance will help companies provide consumers credit without the need to leave the platform. It is a large sector including card payments, investments, lending, banking, and insurance. It makes investing more accessible through easy and affordable access to stocks.
One critical part of embedded finance that’s becoming mainstream is the buy-now-pay-later (BNPL) option. The largest appeal to this market comes from millennials and Gen Z. It seems like BNPL will only continue getting more popular, especially amid the financial impacts of the pandemic.
- Web3 Becomes Mainstream
Consumers and corporations are looking forward to more ownership over digital goods. This is where Web3 comes along, decentralizing the internet and rebuilding it on the blockchain. Platforms like Defi would allow peer-to-peer transactions without reliance on financial intermediaries like banks.
Web3 leaders will likely begin delivering solutions to any challenges of consumer accessibility, protection, and usability. This may help everyone become more confident with Web3, so businesses are likely to adopt Web3 at scale.
- This May be the Time for Blockchain
With cryptocurrency, Metaverse, and virtual reality beginning to take shape in everyday life, we can expect 2022 to be the milestone year for blockchain technology with Web3 becoming safer and more accessible.
Digital assets may be the next strong alternative to fiat currencies in the next decade, with executives even seeing digital assets as an outright replacement!
This is because financial institutions are attracted to blockchain’s security for both parties of the transaction, particularly with identity management. Companies can also use blockchain to fight fraud.
Thanks to blockchain’s benefits and the growth of cryptocurrency, it may result in the growing demand for BaaS, with companies identifying and adopting innovative methods to digitize and streamline every area of their operations.
- Super Apps May Come
Prepare for super apps, which offer various services and products on just one platform. Such services include retail, food delivery, transportation, entertainment, banking, and many more!
You can buy products or services from such super apps, as well as make reservations, schedule appointments, or send packages to any address.
Wrapping It Up
All these trends have something in common: They will make the lives of businesses and consumers easier! There may be growing pains, but FinTech will definitely redefine the finance industry and our relationship with it.
 
Provided By VAT reporting software company, Sovos
