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The Most Promising Areas In The Fintech Market. Prospects And Niches For Fintech Startups For 2022

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FinTech (financial technology) refers to the supply of financial products and services through the use of cutting-edge techniques like big data, various cloud services, artificial intelligence, humanized robots, blockchain, biometric systems, and many others.

FinTech investing

According to the results of the recent international research, in 2021, investing in the FinTech sphere was $210 billion, which is $90 billion higher than the same figure for 2020. Last year, nearly 5,700 transactions were concluded in the financial technology industry. The volume of investing in the sphere of payments in 2021 increased to $51.7 billion, investing in the field of cryptocurrencies amounted to $30.2 billion.

The prediction for growth prospects in FinTech investment opportunities highlights activities in the sector of M&A deals (mergers and acquisitions), future focus in financial technology ESG options (ecologic and socioeconomic), ideas that really can fulfill the necessity to update the bank’s primary systems, and finance businesses for information processing. Banking software companies have to keep an eye on the most potentially profitable directions to stay efficient and successful.

  • Contactless and rapid transactions

The limitations linked with the pandemic have fueled the success of digital finance. The significance of contactless methods of payment has affected the growth of businesses involved in the creation of high-tech services for financial institutions.

The top industry players backed strategic moves at the same time: the advancement of quick transactions and the rising popularity of contactless transfers using audio commands.

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The financial technology marketplace in 2022 simplifies and raises the quantity of automated currency transactions, and digital purchases are becoming an integrated component of money circulation in the government sector in the future years.

  • Operations automation and AI

The adoption of AI technology helps you to increase service quality while lowering expenses. Financial firms, in particular, that are proactively using digital capabilities in their operations are lowering the cost of recruiting staff via the employment of robot experts and virtual helpers.

Artificial intelligence (AI) is extensively utilized in the provision of solutions for market participants; nearly all current instruments (algorithms, robots for generating strategies, trade deals, online brokers) that are used on the stock market are all AI-based.

  • Making use of blockchain technology

The adoption of blockchain systems intends to generate a financial ecosystem which is able to expand regardless of political changes.

Blockchain is a decentralized system which doesn’t have a single owner and keeps data about all system members’ activity. It allows users to fully manage their resources by transferring them via dapps (decentralized apps).

A decentralized payment method presents numerous benefits, including transparency, fast money transfer speed, automated corporate procedures, and mistake reduction.

  • Analytics of Big Data

The quality of data analytics determines overall productivity; the better the analysis, the quicker the corporation can obtain the information needed to make a certain choice.

Corporations may now not only arrange data, but also analyze potential risks, measure the amount of connection with the public, and construct financial strategies, due to the introduction of contemporary financial technologies built for big data analysis.

  • BNPL operations

The dynamic expansion of the digital commerce segment explains the rising significance of BNPL products (“buy now, pay later”), which allow marketplaces to provide items in installments without charge and loans.

Despite objections to the “buy now, pay later” idea, as well as worries that this instrument encourages people to fall in credit, the Online tendency letting people to disperse their payments on interest-free installments has never been more popular in the globe.

Financiers believe that the BNPL sector, which is presently positioned as an option in contrast to loans, will shift toward digital purchases and increase 10-15 times by 2025.

The finance industry will continue to grow, giving companies plenty of room to build up-to-date technical banking services. Each year, investors’ interest in FinTech grows; in the upcoming future, the amount of funding for the industry will grow in tandem with the market growth for the need of financial services.



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