It’s that time of the year again, as we reflect on what we got wrong and right. Now, we’re poised to gaze into the crystal ball and foresee what might unfold in the fintech scene in 2022.
One major ongoing trend from the previous years that will continue to dominate the financial service industry is cryptocurrencies. With a significant momentum behind them, we can expect to see more regulation and compliance surrounding cryptocurrencies and NFTs this year.
Another trend set to have a substantial impact on the fintech industry is the normalization of interest rates. As the era of cheap money comes to an end, this shift will affect lending and profitability in the industry, making it easier for lenders to thrive but also strengthening incumbent players.
Market consolidation is another key trend to watch out for in 2022. Fintechs, particularly in older segments, will need to demonstrate sustainable business models to satisfy investor demands, leading to potential consolidation in various verticals such as robo-advisors, neobanks, and P2P lenders.
Talent will continue to be a focal point for fintech, as the Great Resignation makes it increasingly difficult to recruit and retain top tech talents. This also presents an opportunity for fintechs with compelling projects and a purpose to attract skilled professionals amid the talent shortage.
Furthermore, embedded finance is forecasted to become more prominent in 2022, with the invisibility of financial products taking center stage. The concept of embedded finance aims to seamlessly integrate financial products and services into customer journeys, making payments and lending more invisible and integrated into the overall customer experience.
