Banking-as-a-service (BaaS) strategy implementation
Experts talk about BaaS innovations in providing banks with their own infrastructure for fintech and startups. But in Europe, the world has already turned 180 degrees when BaaS is provided to banks by IT companies. For example, outsourcing for the primary identification of a client for banks is already spreading in Europe, when a bank receives verified information from a contractor via an API about the accuracy of client data without implementing any technological processes and software.
Quite quickly, a trend may appear on the market for providing card processing as a service. It is a very versatile service; it does not offer a competitive advantage among various banks in the client's eyes. The main values are continuity and maximization of the efficiency of the cost price of its provision. The player who will consolidate the largest volume of transactions with the lowest cost price will always be more efficient than individual organizations, and banks will buy this service from him.
Artificial intelligence and adaptive machine learning
In 2022, companies will expand their use of ML and AI technologies. This trend will turn from hype into an economically viable technology use case. ML and AI are not R&D, but a real tool that should increase conversions (for example, in smart sales) or, predicting the client's question, give him an accurate answer to reduce the time of contact with the bank in service communications. The emergence of automated consultants will not be long in coming.
The main areas of breakthrough to strengthen the financial sector of banking and fintech will be the use of cloud technologies, BaaS (Banking as a service), state digital currency, and biometrics.
Development of digital currency service technologies
A state digital currency will appear in all countries in the foreseeable future. It is difficult to predict when this will happen, but the workflow for its implementation is not a complex engineering task. When we talk about the state digital currency as the equivalent of the national currency, the main issue is practice and application at the legislative level. All countries want to keep their national currency amid illegal cryptocurrencies. Consequently, the countries' leadership has no choice - there is an unambiguous need to technologize the ownership of the state currency.
Investing in cybersecurity of financial technology
Cybersecurity as a whole will be the most investment-intensive topic in the coming years because we are converting all data about a person and their finances into figures. The issue of the fidelity and immutability of these records for fraudulent purposes is quite acute. For example, when we ask who you are and whose money it is, we are simultaneously talking about biometrics - this is an accurate way to identify a person in the digital world. The issue of cybersecurity is to ensure 100% authenticity of the client's biometric impression.
These are four aspects that will be important for global fintech in 2022. We hope our analysis was helpful, see the portfolio, blog, and contact if we can somehow help with the introduced fintech projects.