The Evolution of Fintech – 5 trends in 2022

Editorial Team

There are no signs of slowing down in the Fintech revolution. The value of the global fintech market is predicted to rise at an estimated $309.98 billion by 2022. That’s a 25% increase year on year from $127 billion in 2018!

Financial institutions increased the number of employees adhering to their manpower needs in 2021. Employees, too, went on the move in high numbers, triggering the ‘great resignation’.  But the hiring trend also posed many challenges for talent acquisition teams as skill shortages became more severe – especially in Finance & technology, while jobseekers became more demanding when negotiating pay as they held multiple job offers at the same time

So, what’s next on the horizon? Below are the top Fintech trends we believe will shape the fintech landscape in 2022 and beyond.

fintech trends infographic
The value of the global fintech market is predicted to rise at an estimated $309.98 billion by 2022.

The Promise of Web3

Web3 (also called Web 3.0) is basically a decentralized blockchain-based ecosystem and 2021 saw this term being used to signal the next era of the internet. In 2022, Web3 is said to become more accessible and safer. 

Today a lot of the apps and content on the internet is owned by the “Big Tech” companies. Web3 reduces a creator’s dependency on social media and empowers them by helping them monetise their followers directly and build their brands. 

It aspires to decentralise the internet by rebuilding it on distributed, user-driven ledger technology (i.e. blockchain). It is mainly used by crypto enthusiasts who don’t want to indulge in the mainstream banking structure. 

As DeFi (decentralised finance) is built exclusively on blockchain, and does not rely on any financial intermediaries (brokerages, exchanges, banks, and so on) for people to exchange funds, this enables direct peer-to-peer transactions, but the lack of oversight or accountability creates huge risk.

In 2022, we can expect to see people in the Web3 space start to deliver solutions to the three challenges of accessibility, usability, and consumer protection. These will help deliver on the promise of Web3 – creating a safe environment for financial transactions.

Hiring Trends

The pandemic has led to a technological boom which in turn has led to an increased hiring in Fintech. A report by the World Economic forum suggests that the topmost emerging job for the Fintech industry will be Analyst and Data Scientist in 2022. 

The future mainly relies on the people who can work with data. The demand of the workforce is increasing manifold, with the vacancies going as high as 95000 in the country!

The focus of the companies during recruitment is also shifting. Now companies are looking for the best talent that will strengthen the company’s culture rather than merely filling vacancies while being obsessed about internal salary bands. 

Fintech startups are also scaling up Marketing and Sales teams. Until recently, they hired people from commerce and engineering backgrounds for these teams. Post-pandemic, the jobs require a background in data analysis, artificial intelligence and exceptional soft skills.

The Case For Frictionless Payments

Digital payment methods have taken over the physical payment methods. And it all started with Amazon’s “1-Click” button for ordering. 

The idea that consumers could enter in their billing, shipping and payment information just once and then simply click a button to buy something going forward was unheard of when Amazon secured the patent in 1999. 

Since then we have seen a lot of disruptive players enter this space. Today the frictionless payment is deep rooted in every industry and spans online, IoT devices, chatbots, e-wallets and so much more. As this grows, real time customer connectivity will become mainstream. 

In 2022, we might see players in the 1-click button go even further and provide even more integrations like one-click insurance, etc.

The demand for new skills

The Fintech industry is built upon the idea of disruptive innovation and has redefined financial services. The talent it hires has to contribute towards the reconstitution of the financial landscape, and this requires more than just financial skills.

The demand for blockchain experts is rising with the explosion of the cryptocurrency industry. Some experts say that a highly skilled Blockchain Engineer can earn way more than an experienced software engineer.

The use of smartphones for wider financial and banking purposes is projected to only increase in the future. So, including mobile-technology-related skills in their resumes will help candidates add an edge to their profiles.

Lastly, contrary to popular perception, an employee in a Fintech start-up cannot succeed only in technology, business or finance skills. Professionals also need to build a robust portfolio of soft skills such as emotional intelligence, communication, creativity and adaptability, to achieve long-term success in this industry.

New entrants will face higher standards for compliance 

The fintech community saw dramatic growth globally in 2021 with 43 new fintech unicorns in the third quarter alone – twice the number recorded for the same period last year. This vigour in the industry has also brought a renewed sense of innovation at all costs.

However, in an attempt to meet the ever-changing demands of consumers, some fintechs have found themselves in hot water with regulators. As regulators and customers start to demand more accountability, 2022 will likely bring compliance to the forefront.

Compliance is not just a box to be ticked, but a mission-critical pillar for any financial services institution or fintech player looking to bring a product to market. Customers expect a simple and quick experience, and the challenge will lie in how to deliver that without compromising on financial crime checks and fraud controls.

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