July 26, 2022

Top Trends to witness in the Fintech Industry in 2022

The world is rapidly shifting to the online domain and digital services have witnessed a stupendous rise in the past two years. Digital now is no longer restricted to only a certain section of the population. It is used by almost all, from Gen Z to the millennials, to the older adults and senior citizens. With a rapidly evolving consumer base, it has become a necessity to make banking services more efficient, fast, and user-friendly.

Thus keeping the above dimensions in check, fintech was born. In the year 2022, financial technology is going to see a massive rise. It is estimated that the market value of this fintech sector is going to record a valuation of $309.98 billion which is almost twice its value in 2018.

The vast number of innovations in payments and banking technologies have been redefining the financial realm.

What does fintech hold for the future? We take a look-

Fintech is an innovation that aims to bring about a change to make banking services streamlined for the customer of today.

  • Artificial Intelligence and Machine Learning-

The use of artificial intelligence and machine learning has given a big boost to the fintech sector. Due to the use of AI and MI, banks can capture a large amount of data set and derive conclusions by analyzing real-time patterns and offering quick solutions along with decision-making.

The use of AI and MI improves effectiveness and efficiency drastically. AI is also known to improve employee productivity by almost 59% in the banking sector. Several fintech companies are continuously researching the various areas where AI will be helpful, especially in fraud detection, credit service, and loan services.

High-demand jobs in Artificial Intelligence and machine learning-

The insurance sector is seeing a tremendous rise in reshaping insurance policies and with the help of artificial intelligence and machine learning, organizations can calculate the level of risk through this activity. Fraud analytics expert claims management, Policy and Strategy manager are some of the high-demand jobs in Artificial intelligence and machine learning.

  • E-commerce-

One of the industries to showcase a catastrophic boom in the digital domain is the e-commerce industry. It has seen a rise that no other industry has witnessed due to the rise in online payments. The smooth payment and checkout process is a force to reckon with and the new-age consumer is only too happy to accept the same. It has also led to an increase in the conversion rates for the website. Furthermore, it has also led to a cross-border payment flow of almost 5% and offers enormous growth potential for small business owners too.

High demand jobs in Ecommerce-

Business and marketing analysts are the top paying jobs in e-commerce. Analysts need to provide several forecast reports, prepare financial models, and prepare key insights for the customers.

  • The rise of the cloud banking system-

Banking processes are far easier to operate and prone to less number of errors if they have a cloud-based infrastructure. For a smooth transaction of global payments, and contactless payment transfers, cloud banking is your go too option. Cloud banking is also an excellent opportunity for banks to connect with their customers directly and to maintain customer relations anytime and anywhere. Cloud computing also increases the overall efficiency in the banking industry.

High demand jobs in Cloud Banking-

Software as a Service(SAAS) is a system for delivering software applications through the internet which is done typically on a subscription basis. Delivery managers, software architects, Principle automation engineers, and Product leads are the top job opportunities in cloud banking in the fintech industry.

  • The rise of investment in IoT by Fintech companies-

The financial industry is increasingly seeing a growing trend in investment in IoT applications due to its numerous benefits. Those are typical-

  • It allows the banks to track the devices which are involved in financial crime and help track the location.
  • Banks will be able to make use of voice and facial recognition to identify their customers.
  • IoT with the help of AI in tandem can help track down suspicious transactions and identify any doubtful consumer behavior.
  • The IoT systems can help collect a vast amount of data that can help provide better customer support.

High-demand jobs in IoT-

Data experts with skilled knowledge of IoT will be an asset to the fintech sector. With devices connected everywhere, data monitoring, analytics and control will be used in marketing.

  • Blockchain technology:

Blockchain is expected to revolutionize the way financial transactions are conducted. The technology is expected to provide greater transparency and security while reducing costs. 5. Growth of robot advisors: Robot advisors are expected to gain popularity in the coming years as they provide expert advice at a fraction of the cost of traditional financial advisors.

High-demand jobs in the Blockchain technology-

Blockchain experts and developers. Blockchain is one of the fastest growing in the fintech sector with skills such as C and C++ needed as the basic programming language.

  • Growth in digital banking and customer payments-

Digital and mobile banking provide an unprecedented advantage to the customers. Research also suggests that the global banking industry is estimated to reach $10 trillion by 2027. Various uses of mobile payments apps have also transformed the payments scenario and will contribute to over $11.83 trillion by the year 2027-28.

High-demand job in Digital Banking-

As regulatory, operational, and online crime risks grow in financial institutions, the need for specialists to analyze, access, and prevent the same is going to be on the rise. A high skilled job of a risk and compliance officer is going to witness a rise in the coming years in the fintech sector.

  • Higher focus on banking and financial security-

With cyber-crimes and cyber-criminals continuing to have an upper hand in internet thefts; we can expect the fintech sector to invest more in cyber security.

  • Cyber security companies and fraud prevention teams will work together closely to mitigate the risks of cyber security.
  • There will be increasing use of biometrics for customer identification.
  • Banks and financial organizations will use multi-factor authentication instead of solely relying on passwords.
  • Eventually, there will be a rise in regulatory scrutiny, and developers of fintech apps will focus on decreasing the top application vulnerabilities.

High-demand job in Cyber security-

A cyber security analyst is one of the top demanding and highest paying jobs in the fintech sector it is expected to rise in the future.

    Some interesting trivia on the fintech industry-

  • Who coined the term fintech?

Fintech is the abbreviation of the name ‘financial technology’ and was used in the 1980s by Peter Knight.

  • What is the future of Fintech?

The fintech market will embrace blockchain and will soon witness unprecedented growth. It is expected to reach a market valuation of 6700.63 million by 2023.

The year 2022 is expected to bring in more stability in terms of business operations related to the fintech domain along with a high level of innovation. The constantly evolving trends will also shape the business future of the fintech industry.

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