World Fintech News
Fintech Market Trends and Predictions for 2022
Fintech has seen a dramatic rise in recent years, especially in India - boasting the highest adoption rate of 87% anywhere in the world. This high Fintech adoption rate has resulted in lending and payments dominating India's fintech landscape, supplemented by Wealth Management, Personal Finance Management, Insurance, and Regulation Technology. Log into the World Fintech News website to learn more about the recent market trends and predictions on Fintech for 2022.
All You Need to Know About Fintech's Market Trends
Asia-Pacific fintech is growing at an incredible rate, with China and India being significant players within the region. 2015 saw a surge of new fintech companies being established as well as an influx of public and private investments from investors from around the world. Due to this sharp increase, estimates predict that India will become the third-largest Fintech market by 2025. As such, it is expected that this region will continue to lead global growth in the fintech space over the coming years.
To ensure that this growth is sustained, regional governments are making regulatory reforms to ensure that their respective markets remain attractive to investors and entrepreneurs. This will be further supported by increased investment into technological infrastructure, allowing for more efficient transactions and improved customer services across all segments of Fintech. Finally, educational initiatives must also be introduced so that consumers can better understand how they can benefit from these advancements and make informed decisions when it comes to managing their finances.
The Indian Fintech industry has undergone remarkable changes in recent years, propelled forward by customer expectations and the ubiquity of e-commerce and smartphones. During 2020's COVID-19 pandemic, this industry saw ever-increasing growth as people moved to digital payments instead of visiting physical banks. South Asia is home to 150 e-wallets, allowing customers to save and spend with unprecedented convenience.
This improvement in online banking was further enforced since many people could not visit their local bank due to energy and health concerns; thus, the number of users for fintech banking apps skyrocketed. As a result of these trends, the Indian fintech sector has become more technologically advanced - offering services such as streamlined financial processes through automation, faster payments and online transactions, secure platforms for electronic money transfers, and greater access to credit.
The lockdowns in the year 2020 caused a dramatic rise in the use of mobile payment methods, with experts estimating a 43% increase. UPI, a mobile payment type, became particularly popular among Indian citizens during this time. Records from December 2020 show that approximately 3.1 billion transactions were conducted through UPI alone. Despite these advancements, many Indians still lack access to bank accounts due to their diverse educational and income backgrounds. Financial technology (Fintech) solutions have also failed to gain traction among people who still prefer using cash to buy things as they are often considered too inconvenient and challenging to use.
However, several government programs, such as the Pradhan Mantri JanDhan Yojana, have made accessing money easier for Indian citizens. Additionally, various initiatives such as demonetization, Digital India, and cashless economies have also played an essential role in helping Fintech become more prevalent in India's economy today by eliminating barriers such as low levels of financial literacy and limited access to banking services.
What to Expect in the Near Future?
With the onset of the pandemic, Fintech in India has become a crucial part of the country's effort to achieve financial inclusion. Despite the practices of social distancing and lockdown imposed across the nation, digital transactions within the Indian fintech domain saw an astounding 40% increase. Experts have estimated that by 2025, this market will grow to a whopping $84 billion, with its current worth standing at $31 billion. It is expected to observe a compound annual growth rate of 22%. This industry is second only to e-commerce in terms of venture capital investments in India.
Fintech companies increasingly rely on India's largest sales outsourcing platform to augment their sales outreach. Furthermore, Indians seem far more willing than the global average (64%) when utilizing Fintech services, with adoption rates for this sector stands at 87%. The future looks nothing short of rosy for this branch of technology — it promises efficient financial services for businesses and individuals alike. With its great potential for contributing towards economic development, Fintech will soon become one of India's most promising sectors from a business perspective. Businesses must take advantage of this opportunity and ensure they stay abreast with all developments concerning this industry, whether related to legislation or technological advancement, to remain competitive in their respective fields.
In recent years, digital banking has revolutionized the world of finance. According to a 2019 Global Market Insight study, the emergence of Fintech and digital banking has led to a 36% drop in banking branch visits. This trend is expected to continue as more and more people take advantage of products such as MasterCard, which allows them to make international or domestic transactions without needing to visit a bank branch or handle the paperwork.
While this kind of technology is still only accessible to a limited number of individuals who understand enough about money and have the financial resources, government programs and initiatives strive to bridge the gap and make digital banking available for all. In addition, it is believed that digitizing financial services can bring numerous benefits, including faster payments, greater convenience, improved security, and cost savings. As a result, various nations have been investing heavily in advancing their digital infrastructure to make it possible for everyone with access to an internet connection to benefit from sound financial advice and up-to-date services.
An Overview of Technological Advancements
Blockchain, a public ledger technology, is becoming increasingly popular in the banking industry. It is an encrypted, distributed database that stores information about cryptocurrency transactions and other contracts. This system allows for secure and quick transactions without relying on a centralized system. It also helps manage the supply chain of financial services and goods more efficiently. In India, banks have strongly supported this new technology, which stands to revolutionize their day-to-day operations. Blockchain offers greater security and the ability to track data across borderless networks. This means that users can be sure that their financial records are safe and accurate, with every transaction they make validated by each node in the network.
Banks can use blockchain technology to make faster payments within minutes instead of days or weeks. Not only does blockchain provide customers with peace of mind, but it also streamlines processes such as settlement timeframes for customers who need to move money quickly. Furthermore, it helps reduce costs associated with middlemen fees since no intermediaries will be required for any transaction, making it a cost-effective option for both banks and customers alike.
As digital payments continue to gain traction in the modern world, fintech innovations are becoming increasingly important. Overall, blockchain technology has proven to be a reliable method for secure and fast financial transactions within the banking sector - offering both customers and banks more options for handling their finances. The number of banks utilizing this technology will surely increase as its benefits continue to be realized by those involved in the industry.
Mobile payments, contactless payments, e-wallets, and even AI and machine learning for security are becoming more widespread. In particular, digital wallets and mobile payments will be the driving force behind this growth in the coming years – by 2022, it is expected that in-store sales from mobile purchases will have risen to over $2.7 billion. As such, by 2025, the total amount of money transacted through electronic means around the world is estimated to have grown to as much as $5.4 trillion.
Not only can mobile payments revolutionize online shopping, but they can be used for purchasing goods and services in physical stores too. All these technologies are making their way into the mainstream thanks to user convenience, higher levels of security afforded by machine learning and AI, and decreased costs associated with transaction fees or card readers. This is just one example of how financial technology (Fintech) is revolutionizing both consumer habits and the payment industry, providing customers with greater ease of use when it comes to electronic transactions.
In the coming years, Fintech is set to revolutionize the financial industry. With digital payment gateways, more credits available, more business and personal transactions taking place globally, and easier account setup processes, the e-commerce market will see a notable uptick in demand. Banks and other financial institutions have already started to leverage artificial intelligence to manage a wide array of tasks, such as security measures, customer service inquiries, and high-value deals.
Blockchain technology has become widely used in economies around the world for its ability to secure transactions with transparency and efficiency. As the neo-banks rise in popularity and digital transactions increase, it's predicted that by 2022 there will be a 40% decrease in people visiting physical banks for their banking needs. This shift towards a more digital future will increase convenience, enhance security measures, and provide greater access to financial services for all.
The Bottomline
FinTech businesses are on track to provide users with access to innovative technologies such as peer-to-peer lending platforms, mobile wallets with advanced features, improved payment systems with encrypted data transmission, and more. The benefits of the widespread adoption of FinTech technology include faster processing times, cost savings due to the automation of underlying processes, improved accuracy in operations due to real-time analytics capabilities, and heightened cybersecurity measures aimed at protecting consumers' data from fraudsters.
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