4. Data and the Customer Experience
The aftermath of COVID has made digital banking a go-to option across the financial world. Fintech companies are continuously coming up with new technologies, not only to engage with the clients but also to provide them with more efficient services and products as well. Data is a significant part of digitization. Better insights of the information rendered out by using AI and machine learning concepts improve the analytics; therefore, it provides businesses with a broader understanding of customers’ requirements. Real-time analytics also improves service speed. In 2022, clients’ will expect immediate responses to their banking operations and services. In addition to this, the cybersecurity measure can also be enhanced by embedding facial biometric authentication solutions in the pre-existing systems.
5. The Rise of Cross-Border E-Commerce
Progress usually entails change, and in recent years, most significant change was as a result of Covid, making work-from-home and social distancing the norm, radically altering the concept of a “hometown business”. According to a study by Accenture, the total worldwide cross-border payment flow is expected to reach US$156 trillion by 2022, expanding at a CAGR of roughly 5% each year.
However, due to the explosion of eCommerce, global transactions provide huge growth potential for small retail businesses. However, in 2022 there will be a spike in cross-border eCommerce, while clients will expect an easy and secure payment solution from such businesses.
6. Strengthening FinTech Regulations
The increasing number of digital financial transactions, as well as shift of monetary services to the cloud, necessitates improved data security and regulations. As a result regulatory authorities are making efforts to come up with more comprehensive laws regarding finance and data management. That being said, Regulatory Technology (RegTech) has become a popular buzzword. Enterprise-level software that uses machine learning algorithms and the newest data analysis principles now handles regulatory monitoring, compliance, and suspicious activity reporting. However, in 2022, the regulatory landscape will become more rigid that will assist the FinTech companies to make onboarding and financial processes transparent.
7. NFC Verification Systems
Like other industries, Fintech is also on the hit list of criminals. Criminal activities like data breaches, money laundering, and other financial crimes are on the rise. FinTech companies need to comply with the Know Your Customer (KYC) regulations to identify the real identities of the customers before getting them on board. On another hand, combating fraudulent activities must be the top priority of this industry. However, Shufti Pro’s robust NFC-based identity verification solution can aid the FinTech companies in determining the clients’ identities and staying put with the regulatory obligations. The data saved in NFC is encrypted, which means it’s impossible for the fraudsters to decrypt and alter information. Therefore, companies must go for NFC Verification in 2022 to secure financial services from cyberattackers.
