Except, if we had one, it wouldn't be very digital or data-driven in its approach. Instead, we engage with a diverse variety of colleagues and stakeholders on the most recent business trends and advances. We have included a summary of some of them in this post.
1. Cross-Border Payments
Numbers can never be deceived. The Bank of England predicts that global cross-border payments would approach $250 trillion by 2027, with business-to-business payments accounting for the vast bulk of this total. The surge in international remittances is mostly due to the expansion of online trade, investment, and business. However, these transactions remain excessively expensive, inefficient, and time-consuming.
What is it that makes overseas financial transactions so time-consuming? Legacy systems are generally utilized because there are different deadlines for each jurisdiction and there is little competition, to name a few reasons. The G20 summit in 2020 committed to making these transactions more efficient and integrating strategic goals in order to engage with a larger number of stakeholders.
According to this plan, central banks would be compelled to upgrade their payment systems, while new private-sector players will be expected to adapt to these enhancements. We want to witness the execution of this approach and the transformation in cross-border payments by 2022.
2. Banks rely on technology, particularly blockchain.
In the following year, traditional banks will make considerable investments in innovative technology. According to Forrester Research, which was quoted in this piece, banks will make considerable investments in a future-proof technology strategy, new talent, and other fintech. This tendency will be led by the United States and China.
Another hot issue among financial institutions is blockchain technology, which looks to have the ability to make transactions both faster and more secure. Despite the fact that adoption is still in its early stages, central institutions such as China are increasingly embracing digital currencies. As a result, in 2022 and beyond, we could expect to hear a lot more about blockchain.
According to The Europe Business Review, 66 percent of banks anticipate that blockchain technology would be in use within three years of its adoption.
3. Cashless
In the following year, traditional banks will make considerable investments in innovative technology. According to Forrester Research, which was quoted in this piece, banks will make considerable investments in a future-proof technology strategy, new talent, and other fintech. This tendency will be led by the United States and China.
Another hot issue among financial institutions is blockchain technology, which looks to have the ability to make transactions both faster and more secure. Despite the fact that adoption is still in its early stages, central institutions such as China are increasingly embracing digital currencies. As a result, in 2022 and beyond, we could expect to hear a lot more about blockchain. According to The Europe Business Review, 66 percent of banks anticipate that blockchain technology would be in use within three years of its adoption.
4. WealthTech
With the rise of new WealthTech businesses, banks and wealth managers' largely homogeneous industry is being challenged, particularly after 2017. WealthTech innovations are many and diverse. Robot advisers (which can also manage pensions), digital brokers, cutting-edge investment tools, and, most notably, non-fungible cryptocurrencies are all on the increase (NFTs).
WealthTech combines both online and mobile banking, which is why the recent initial public offering (IPO) of Nubank, Latin America's most valued financial company, should not be disregarded. Wealth technology funding is estimated to exceed $20 billion in 2021 as a result of the pandemic. As a consequence of the launch of new financial and investment applications, the younger generation has also become aware of it. WealthTech has entered the mainstream.
It is projected that strong trade democratization will have a big impact on the business by 2022 and that it will become increasingly more prevalent. Above all, platforms like Robinhood will enable "armchair traders" to have a substantial effect on whole market sectors.
5. Cybersecurity and RegTech
There are several advantages to digital transformation for organizations and financial service providers, but there are also disadvantages, as there always are. Cyber-attacks have the potential to do considerable harm in our digital age. Furthermore, many fintech companies contain data that hackers are particularly interested in, such as monetary transactions and personal information, making them appealing targets.
As a result, the financial industry relies on cybersecurity more than any other. According to projections, fintech will make record-breaking expenditures in cybersecurity in 2022, most likely as a result of mergers and acquisitions. In 2022, a significant amount of money is predicted to be spent in the RegTech business in particular. Through a combination of technology improvements and local regulations, businesses in this region are attempting to strengthen data protection and cybersecurity. The division also provides services such as hybrid cloud computing, cryptography, cloud security, mobile security, improved authentication, and biometrics.
As a consequence of technical improvements, supervisors now have more up-to-date and accurate tools to avoid fraudulent conduct and combat money laundering. Fintech firms benefit from these solutions in their KYC procedures as well, because they allow for faster and easier client onboarding, which benefits both the company and the customer.
6. Fintech’s for payroll
Salary administration, which accounts for the majority of the company's costs, remains a slow, onerous, and opaque process. Pay active, BitPay, and Deel are just a handful of the payroll fintech businesses poised to make an impact this year. Some of the major advantages of payroll software include salary advances, real-time payments, and cryptocurrency payments.
Fintech is gradually but steadily becoming more prominent in many industries since it aids in the digitalization of present practices.
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