2021 was a year of massive growth for the Fintech industry. While the pandemic forced many industries to take a step back, FinTech solutions and cloud-based services continued to rise.
As we edge closer to 2022, we look at trends that will carry over into 2022 and share any Fintech predictions of what’s to come.
Artificial Intelligence and financial crime
Machine learning and Artificial Intelligence (AI) will become a big factor on tackling financial crime and cybercrimes.
With the rise in machine learning and AI technology available, more organisations are able to incorporate these technologies into their organisations. For example, Banks are now able to analyse massive quantities of transactional data from various sources including databases. AI will then analyse the data looking out for model behaviours and detect anomalies in the data found. A proactive approach of finding these anomalies at the early stage could result in the detection of financial crime before the organisation falls victim to it.
Financial organisations will also rely heavily on transaction monitoring systems to verify transactions carried out, AI will help flag abnormal transactions that older systems may have missed.
Digital Banking will continue to rise
Paper-based banking will continue to decline as we move into 2022. In 2020 it was reported that 80% of the UK population are using online banking services and over a quarter of adults living in the UK have opened an account with a digital only bank such as Monzo or Revolut.
With mobile banking apps, managing finances online is easier than ever before. It’s predicted that banks will reduce the number of physical premises they have and focus on growing online instead.
Cashless payments will be encouraged
Since the outbreak of COVID-19 cashless payments have become the preferred method of payment to help reduce the spread of the virus. QR Codes have become popular in the hospitality industry as a method of ordering and paying for food and drink,
As digital payments continue to be the norm even post pandemic, new innovative ways of paying will be a focus across the Fintech industry. ‘Virtual wallets’ will replace physical ones and the industry will look at new innovative methods of processing payments with a focus on ID Verification and biometrics for security.
Contactless Biometric security systems plans
While an increase in online activity has many benefits, the downside is that cybercrime and hacks are on the rise. One of the most recent high-profile hacks on T-Mobile is reported to have exposed personal data of 40 million individuals, demonstrating the devastating damage cyber hacks can have on a business and its reputation.
The Fintech industry will be investing in systems to avoid security breaches and give customers the confidence that their personal information will be safe.
The industry focus will be on contactless biometric security systems – providing the security of biometric technology while eliminating the need for physical touch.
While these new systems are researched and developed, the Fintech industry will still heavily focus on Blockchain technology to help safely carry out transactions.