Technological development has an amazing influence on people’s lives these days. The world changes rapidly and it is difficult to imagine it, without all those technologies, which have occupied all spheres. It is all the same about the financial area that also requires constant improvement and fresh ideas.
Today, we want to share our list of trends of financial technology in the USA that boost the industry by enhancing banking services and improving the consumer experience.
You will learn about:
- Fintech stats and forecasts
- Current and upcoming tendencies of the industry
- Tips to partner with a software development company
Let’s explore the key trends of the fintech industry in the US we can expect in 2022.
Trends of the Fintech Industry in the US by the Numbers
The financial technology sector refers to all the businesses which employ technology to improve the delivery of services in banking, trading, investment, insurance, etc. Over the past few years, Fintech has entered a new stage of its evolution. Here are some numbers:
- In 2020 fintech startups received nearly $44.1 billion
- US fintech companies raised $12.8 billion in the first quarter of 2021
- The total value of digital payments is expected to reach $7.8 trillion next year
The biggest fintech companies in America 2021 according to Forbes
- Stripe: $95 billion
- Klarna: $31 billion
- Kraken: $20 billion
- Chime: $14.5 billion
- Plaid: $13.4 billion
- Robinhood: $11.7 billion
- Brex: $7.4 billion
Fintech Trends in the USA 2022
Some of last year’s financial services technology trends continue to develop. So, let’s dive in!
Big Data
This technology allows financial institutions to process large volumes of data every day. Companies can manage transactions and records quickly and safely. The global Big Data market is expected to reach $70 billion next year. There is a growing number of users that swap from offline to online and digitalize their lives.
Moreover, Big Data brings great benefits as it provides businesses with the following opportunities:
- Improved business model, converted into a customer-oriented strategy
- Prediction of future clients’ interest
- Enhanced market segmentation
- Generation of insights
- Price optimization
On the other hand, with sensitive data stored in the online cloud, the risk of leaks and cyberattacks increases. Thus, in recent years, businesses have been chasing security and investing in solutions that can protect sensitive information. Furthermore, one of the breakthrough openings and fintech technology trends is Blockchain.
Blockchain
Blockchain has become one of the leading fintech industry trends in the USA and is expected to affect the financial technology sector even more in the near future. It is a distributed ledger system where any change can’t be done without notifying everyone included. It transforms everything from storing information to keeping track of financial records. The release of this technology allowed companies to provide security and accountability in service delivery.
When it comes to fintech usage, blockchain is the technology that impacts industry growth. For instance, by changing banking into a seamless and effective experience, blockchain can eliminate bureaucracy and save up to $20 million by 2022.
There are four common uses of the technology in fintech, including:
- Smart contracts
- Digital payments
- Cryptocurrencies
- Share trading
Discover more about Blockchain in Fintech!
Digital banking
Banking technology trends in the US remain in demand from year to year. With the move to the digital, the industry became a full-fledged channel of access to all banking services and products. More and more users prefer to make transactions remotely without visiting local bank branches, signing tons of documents by hand, queueing for hours, receiving paper pay receipts, and interacting with other people. Features of the mobile banking app include 24/7 access to your account, analytics of personal transactions, virtual customer support, fraud alerts, loan, and bill payment alerts, etc.
The innovations are valuable for both financial businesses and clients. financial institutions optimize labor force expenses and process a large number of transactions automatically. Clients receive swiftness, personalized customer experience, data access, and safety.
Mobile payment
Mobile payment apps turning smartphones into the equivalent of payment cards have become common since the introduction of Near Field Communication (NFC). Today more and more people are turning to digital payments which means that each financial service can be held online and operates in a quick, safe, and convenient way.
The level of popularity of various payment methods (contactless payments, e-wallets, or voice payments) has significantly increased. According to Juniper Research, contactless transaction value in the United States alone would grow from $178 billion in 2020 to $1.5 trillion in 2024. According to another report, there was $8.9 billion worth of transactions from mobile wallets in 2020 and the number is expected to reach nearly $14 billion this year.
Mobile payment application types include:
- Bank apps
- Payment systems (Apple Pay, Google Pay, Amazon Pay, Samsung Pay)
- eCommerce Platforms (Shopify, BigCommerce)
This increased adoption of contactless payment solutions will continue to evolve next year as more and more people find extreme convenience when using these solutions.
Platform as a Service (PaaS)
With a refusal from cash usage the industry has found faster and convenient methods to pay for everyday transactions. Thus, the demand for the payment experience is growing, and as a response to the needs, cloud-based solution has emerged in the last few years.
PaaS solution helps financial institutions to adjust to changing needs with customized infrastructure that allows them to embrace the benefits of the cloud. Such a solution allows users to run and manage applications in the cloud and provide expertise, scalability, technology, and security.
From now on companies can skip the need of building and maintain traditional software and servers in-house. Instead, they will have 24/7 access to real-time technology. PaaS is one of the most compelling concepts of managing costs and minimizing risks associated with payment processing.
Autonomous finance
Among the latest fintech trends in the USA is financial management technology that applies machine learning, artificial intelligence, and automation to deliver personalized experiences specifically to the financial services sector. By embracing a range of algorithm-based services it takes financial decisions or actions on behalf of consumers without their direct contribution.
Autonomous financing apps provide personalized, optimized experiences tailored to specific financial processes and guide users on investments, money, and risks management.
Boost your Fintech business: check the benefits of IoT in banking!
Our Experience
Inoxoft is a software development company providing custom fintech software development services and software development services for the United States for companies to resolve their automation challenges, leverage trading success, and digitize banking services.
So, if you’d like to follow the latest trends in the fintech industry and be a step ahead of your competitors – contact us and get:
- A dedicated team of fintech software developers
- Total accountability and transparency
- Best practices of project management
- Full-cycle project implementation
- An effective delivery approach based on iterations
Final Thoughts
The industry is changing along with financial technology trends in the US. Over the past years, these technological breakthroughs have influenced our way of engaging with financial institutions and raised the industry to a new peak. If you looking for a reliable partner with expertise and solid experience in building top-notch financial services software solutions, feel free to contact us and get all the insights about your potential product.
