2020 has definitely been a revolutionary year for the century; starting with the pandemic forcing multiple industries to evolve at an alarmingly fast rate and changing the way interaction is done globally, which allows an impressive upward trajectory of the tech industry. According to Deloitte, the pandemic prompted the financial industry to transition to adopting technology instantaneously, on top of getting investors intrigued by the changes being implemented in the industry.
With the growing trend of tech innovation, comes the question of how sustainable the tech innovation bubble that has been popping out almost overnight last year? Readers, hold on to your seat as we comb through the list of what’s trending in the Fintech industry according to what experts predicted for 2022.
Better financial inclusion with higher-tech literacy
The global economy certainly took a big hit since the pandemic arrived. With unemployment at an all-time high, global leaders look for a way to reduce poverty and boost prosperity simultaneously. According to World Bank, financial inclusion is a key enabler as a crucial step in solving the issue.
Findex data in 2017 shows that around 1.7 billion adults globally are still unbanked. Being able to access a wider range of affordable financial solutions opens up a portal where inclusion is spread across equally. This will increase the spending ability for many and allow for higher-tech literacy. One way to facilitate this is to ensure the set up of transaction accounts is easily available for the world population to manage day-to-day living, to accommodate any unexpected emergencies, and for thorough financial planning (either short or long term).
The evolution of Fintech Regulation
When an industry goes through a rapid transition, the answer to the burning question everyone has in mind for the regulation is often a thorough look at the existing system we have today. However, overhauling regulations come at a cost and often affect the ongoing target audience and the businesses.
In the current context though, Fintech regulation would foresee additions to accommodate the current growth without impacting the goals that have been set during the pandemic. Besides, as more embedded financial services are being offered throughout the world, it calls for new laws implemented to cope with consumer demand.
The buzzword: Artificial Intelligence and Machine Learning
Understandably, the Fintech industry is regulated tightly due to data privacy and security concerns. Although these two technologies have been around for a while, only recently it has become the talk in the industry. These technologies will take precedence over the next few years, as projected by KPMG. The banking industry gears up its AI-assisted services offering to ensure the highest level of customer satisfaction is being delivered.
However, it does not just end there. With the rising digital interactions comes the equivalent risk of cybersecurity attacks. The stark reality is artificial intelligence and machine learning is not only a step forward, but is imperative in the fight against fraud tech in the financial and banking industry.
As excited we are to embrace these emerging trends, careful observation has made us realise the unfulfilled demands of yesteryears are only being met when the pandemic changes how the world interacts. Late as it may seem, these trends are definitely beneficial in world economic recovery besides offering more transparent financial products in the future.
A peek into the projection of 2022 of Fintech trends has the financial and banking industry buzzing with the new regulation set-up and incoming digital transitions. For the Fintech industry, not slowing down is definitely the answer in keeping the trajectory on track and in creating more innovation, eventually leading to heavy investment in financial technologies in the future.
JurisTech (Juris Technologies) is a leading Malaysian-based fintech company, specialising in enterprise-class software solutions for banks, financial institutions, and telecommunications companies in Malaysia, Southeast Asia, and beyond.
As one of the Fintech pioneers in Malaysia, our vision is to enable financial inclusion for the financial industry with our diverse range of solutions. Check out our latest AI-powered technology Juris Mindcraft, that helps banks and financial institutions to transform their digital landscape.