Knowing fintech industry trends will help you create the most modern, functional, relevant software, application, service, or any other fintech product. Any startup, growing business, and company that decided to expand its business should keep an eye on fintech trends. We’ve compiled a list of top trends in fintech for you to get familiar with what’s coming your way.
Fintech Trends: a List
1. Mobile payments
Mobile applications make it easier for a company to interact with its customer base, but they are also helpful to the customers themselves. Fintech app development companies make good money on this.
Need to sell a stock or buy cryptocurrency quickly? It is much easier for a person to open an application than to conduct such operations over the phone or at a bank branch. All this would not be possible if we had only cash payments at our disposal.
Mobile payments are a quick and much more convenient way to pay than cash. This simplification of payment is also useful for businesses. This is why mobile payments are one of the most important and noticeable trends in the fintech industry in 2022.
2. Cryptocurrencies and NFTs
Another notable one this year is cryptocurrencies and NFTs. Cryptocurrencies are virtual money that does not have any physical embodiment and are, in fact, just numbers that represent the number of units of account. For the first time, cryptocurrencies became the talk of the town after Bitcoin “took off.” Starting in 2008, with literally minimal value, now a bitcoin in dollar terms is worth about 20 thousand.
Soon after Bitcoin, other cryptocurrencies began to emerge. For example, Dogecoin, the rate of which in 2021-2022 started to grow thanks to the posts of Elon Musk on Twitter rapidly. There is a high probability that the use of cryptocurrencies will soon become as commonplace as using cash to tip couriers. Advanced fintech software development companies are introducing the possibility of paying for goods and services using cryptocurrency.
If we talk about NFTs, the emergence of this concept also led to the development of cryptocurrencies. NFT is a non-exchangeable token, unique, and cannot be replaced by any other token. When you buy an NFT, you get a unique digital object, which will belong only to you from now on. You can use it in the digital world — for example, in computers and online games. Buy NFT armor for your character in some fun and use it to, for example, improve your defense performance and personalize your avatar. NFTs are becoming more and more popular and paying for them with cryptocurrencies.
3. Artificial Intelligence
Artificial Intelligence could be heard about as far back as +- 10 years ago. However, the technology, although not so new per se, remains popular. Moreover, it develops and becomes increasingly “advanced” every year. For example, it is almost impossible to distinguish a dialog with a human support service representative from a chatbot dialog. There are also programs based on the work of artificial intelligence, which write texts no worse than copywriters. All this is possible through the analysis of vast amounts of information.
To use artificial intelligence in fintech application development means to be in the trend and reduce the consumption of human resources for secondary tasks.
4. Payments Modernization
For many businesses, the speed of payments is a weighty argument when deciding on cooperation. Real-time payments significantly increase your chances of getting a contract, so fintech companies should consider adopting accelerated payment capabilities. If you compare the modern world to car racing, optimized and accelerated payments are like new wheels for a race car.
In addition, Payments Modernization also addresses other aspects of payment transactions. Simplified processes, more stable payment services, and increased revenue — this is what many businesses are focusing on in 2022.
5. Voice-Enabled Payments
Chatting with Siri’s virtual assistant isn’t a surprise anymore. You can ask almost anything — from the weather to the current exchange rate. Today’s cutting-edge companies are thinking of going even further: learning how to make payments using voice commands.
In the past, first of all, the technical side of things did not allow us to do this. There was also some prejudice about how safe it was. But now, fintech applications development has advanced to the point where a voice assistant can recognize voices as effectively as possible. This will keep users safe from potential fraud. In addition, Voice-Enabled Payments will make life and social interactions much easier for visually impaired people.
6. Open Banking
What is Open Banking? Unlike other digital banking trends, open banking is a regulation instituted by the government. The European Union adopted the Payment Services Directive, thus obliging banks to make all their transactions more transparent.
Why is that a good thing? All bank users can track and monitor their finances. They also get access to data about their finances to a much greater extent than they used to. Maximum transparency leaves no room for maneuvering and all sorts of machinations.
For fintech app development, this is also good because you can access a significant layer of open banking data. You’ll be able to learn the payment habits of potential users and design your payment system to be as convenient as possible for your customers. So consider this fintech trend while developing or improving your company, startup, or product.
WealthTech is a broad and beautiful term that means many concrete things. It refers to digital solutions that help people manage their finances. WealthTech can also include technologies that support the end user, companies, businesses, and industries.
For example, online markets and various exchanges are part of the WealthTech infrastructure. These services help to trade shares, cryptocurrencies, and other assets more profitably and efficiently. This has a positive effect on the global market dynamics.
WealthTech can also have a positive effect on your company. Being engaged in fintech apps development and creating software, which is somehow connected with finances (even if you can buy or sell something in it), think about implementing WealthTech solutions. Optimize your payment system, improve customer experience, and simplify payment transactions. This way, you will contribute to the growth of your profits and the development of the world market in general. Launching fintech mobile app development will significantly benefit if your payment systems align with the vision of wealth tech software.
With the increasing availability of data, the issue of data security becomes more acute. Like any other business, all fintech software development companies process vast amounts of information. You probably also store data about your customer base — from names and phone numbers to more valuable data about their bank cards. So when developing any software, it’s critical to first take care of the security of the data that the software will handle.
In 2022, cybersecurity is receiving special attention. Not only are there new ways to protect the information, but also new ways to steal data. So to make your customers feel safe, focus your efforts on developing robust security mechanisms.
9. Internet of things
The IoT is not a new concept, but it is reaching its peak in 2022. The Internet of Things is an environment in which machines, software, gadgets, and so on communicate. You can use an endless flow of information to your advantage.
By working skillfully with IoT, you can offer your customers effective solutions that will help them provide personalized offers to consumers. For example, you are planning fintech software development in the b2b segment. Triggered mailings, optimized advertising – you can customize this and much more with the internet of things data.
10. Biometric Technology
Do you want to unlock your phone with a fingerprint scanner or FaceID? Easy!
How about using it in fintech application development services?
Financial transactions are becoming more and more exciting and convenient for users. It is much more convenient and faster to confirm a payment with a fingerprint than entering a confirmation code or, even worse, going to a bank app and pressing the “confirm” button. In 2022 and beyond, it is predicted that trading transactions, card-to-card transfers, and other financial and asset manipulations will increasingly rely on biometric technology. Don’t miss your chance to be in the trend.
How to Create a Modern Fintech Product?
Developing software to meet today’s needs is Magnise’s core business. We have ready-to-use solutions that can be personalized for your company. We also do fintech mobile app development from scratch if necessary, build various software, analyze and optimize existing programs and help you to choose the best solutions. We are sure that this is fintech’s future and closely follow the trends in this sphere.
Magnise is ready to help a fintech software development company create a product according to all the trends in the fintech sphere. You can discuss the details during a personal consultation. Our experts will study your specific case and describe how they see the solution to the problem. We can also offer several options to choose from and provide the best development team for your product.