It is not surprising that FinTech has taken a sharp turn since 2020 and that has now been distinctly evident in 2022.
SwissCognitive Guest Blogger: Utpal Chakraborty, Chief Digital Officer, Allied Digital Services Ltd., AI Researcher – “Foundation for the Digital Journey of a Bank” – “Fintech Global Trend 2022”
I would say, FinTech is no more the traditional one, but it has been able to evolve itself to match the current demand and future to a great extent. Probably same goes for InsurTech and RegTech that will be noticeable in coming few years.
Also, the FinTech firms are trying to expand their horizon beyond traditional areas of banking & finance and trying to come out from the comfort zone and explore something where competition is still less.
The same trend was noticeable in the Fintech Festival India 2022 took place from 20th till 22nd July 2022. The grand event hosted almost 8000+ Business Visitors, 500+ Delegates across 35+ Sessions & Discussions on different topics. With 100+ Speakers from the industry across the globe and with over 100+ Exhibitors and Sponsors, FinTech Festival India has been able to proclaim global stage like it got featured on Times Square, Nasdaq.
Although the traditional players like Digital Payments, Remittances, Financial Analytics and AI Powered Banking & Customer Care Solutions showcased their capabilities but the companies and solution took centre stage this time were Blockchain, Crypto, Web 3.0 & AI, Metaverse, NFTs, Wearable Devices for financial transactions. Along with all those obvious and expected players, few other startups that attracted my attention were No-Code & Low-Code platforms, PaaS solutions and Cyber Security for the financial industry and few of the InsurTech and RegTech solutions.
If I now compare this trend with the Global FinTech trends – We can easily notice the evolution of Blockchain is going to transform the entire financial landscape, maybe it will take some time for widespread adoption, but no one can stop this revolution. Blockchain being at the core for transactions and execution of Smart Contracts, Crypto as a community currency and NFTs (Non-fungible Token) defining the ownership of assets in the virtual universe called “Metaverse”. Looks bit unrealistic and difficult to digest for many, specially finding a right use case for such NewGen technologies for financial sector but trust me; things have already started happening and some banks have already started building utilities in the Metaverse around banking services. So, it will be not wrong if we say that Web3.0, Blockchain, AI, Metaverse and the peripheral technologies is going to redefine the customer experience across industries.
While moderating a session on Metaverse in the Banking World in the event, it was enlightening for me from my co-panellists that NFTs (Non-fungible Tokens) have already paved their way to the mainstream finance. In fact, they can be used to represent ownership of any unique asset, such as a certificate for an object in the digital or physical realm. NFTs are digital asset representations that are likened to digital passports because each token contains a unique, non-transferable identification to distinguish it from other tokens. Unique NFT data makes it easy to verify ownership and transfer tokens between owners while transacted. NFTs contain ownership information for easy identification and transfer of tokens between token holders.
InsurTech and RegTech has already taken a great momentum. Also, concepts & solutions like Buy-Now-Pay-Later and Fintech Payroll solutions will make their way very soon in countries like India. Concepts like Salary-on-Demand, Advance Salary and Crypto-Payroll is going to revolutionize the way we see traditional payroll & finance today.
Web3.0 powered by Mixed Reality & AI is going to come at forefront in a big way and Facebook is going to set the benchmark for all others that what experience users can expect from a “Meta” environment and what all utilities can be availed, and financial industry will not be an exception.
The Rise of “Digital-Only” Banking or “Neo-Bank” is going to spark the adoption of NewGen solutions including in the areas of RegTech, because these two need to go hands in hand to actually bring in an adaptive culture in the financial world.
I was expecting few players and solutions on the sustainability front in the event – solutions encouraging Financial Inclusion and Green Finance, but unfortunately either there were none or escaped from my eyes. But I am sure this is an area where we can expect some cognitive solutions which will be able to quantify the contribution of a financial organization todays sustainable & green finance by measuring various parameters from different financial initiatives.