Fintech stands for financial technology. Finance is a traditional industry, but the involvement of advanced technologies in the financial industry results in fintech. So, it is like being on the periphery of finance and innovation. However, to be clear in the beginning, fintech companies encompass both unbanked and underbanked people, thus providing more handy services.
There has been a rapid emergence of fintech startups that offer innovative and attention-seeking services all around the world. These fintech organizations provide solutions in areas such as mobile payments, wealth management, financial management, digital wallets, insurance, digital banking, lending, and analytics.
Today, the fintech industry is a game-changing industry because of its use of cutting-edge technologies like blockchain and AI to boost business growth. Thus, the motive of today’s blog is to give you all an insight into technology trends in fintech that will rock in 2022.
Fintech Market Overview: Facts & Figures
Fintech is the unification of technology and finance in a harmonic way. And its collision with the industry is enormous. In the beginning, it was mentioned as a cutting-edge innovation, but now fintech solutions are a daily necessity.
The evolution of fintech industries has actuated both pure fintech participants and digitally transformed banks and motivated them to leave traditional banking and share markets.
Today, a big part of fintech includes original but inventive traditional services. Fintech startups develop new solutions and offer them to existing organizations, especially to those who are establishing payment systems and mobile wallets.
If you look around, mobile banking has become immensely popular among people of all generations, who prefer using online banking apps.
Some of the popular fintech startups are neobanks, payment gateways, and cryptocurrencies. There are a total of 61 fintech unicorns, and 472 fintech startups are valued at over $1 billion.
According to a Statista report, by the end of 2021, 8,775 fintech startups were recorded in America, 7,3385 in Europe, and 4,765 in the Asia-Pacific region.
Another report by PRNewswire.com stated that the intercontinental fintech market is anticipated to reach $309.98 billion at a compound annual growth rate of 24.8% by 2022.
The stats above depict how fintech’s potential and necessity are realized by the general audience and industry, and will continue to generate a revolution in the financial industry by improving traditional financial services.
(im 1)How Fintech Startups Decides The Technologies
We never said that choosing a tech stack was a cakewalk. Every fintech startup needs different technologies. Nevertheless, the main aim of any fintech organization is to surpass both the standard finance brands and their present fintech competitors.
To simplify the process of choosing the right tech stack, check out below the crucial factors that will surely affect your tech stack selection.
Decide on a niche for your startup: Every niche, whether it is banking applications or digital wallets, has fixed requirements. Therefore, it becomes important to decide on a niche and to certify regulatory compliance for your startup.
Check for regulatory compliance: Every country has different rules for financial regulators. Therefore, you should offer solutions that comply with the rules and regulations of the country and should harmoniously handle KYC, AML, and several other procedures.
Select a tech stack that depicts the relevancy of the end-users: You have to identify your audience’s nuisance and demand that they add the relevant features. Recognize the technology that will fulfill these needs and can integrate the features.
Be mindful of the UX/UI and architecture of the application: Select a tech stack that fulfills all the design requirements.
Choose a development approach: The technology stack that you will select on the basis of the above points will help you get a clear perception of the development approach.
And here’s one additional tip for you all that hardly any blog or article will mention.
Always take examples of successful startups and learn to form them. However, here, it doesn’t mean that you have to mimic or make a clone. No, absolutely not.
This is only to analyze your competitors.
Now, let’s get to the main topic of technology trends in fintech.
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