After the radical changes to the global markets in 2020, the world looks to return to normal in 2022. However, the financial world will need to adapt to behavioral and technological changes to stay relevant over the next 12 months. Here’s a look at three trends that will affect the financial world in 2022.
1). Financial Institutions Adopt To Hybrid Workers
During the 2020 shutdown, many professionals turned to remote work full-time. As the world has almost completely re-opened, many professionals are still choosing to work remotely on a partial basis. This is forcing several financial institutions to adapt to what are known as hybrid workers. New financial services will be needed to help businesses handle operations where employees and projects will be spread out across the planet. Cloud-based bank operating systems such as nCino will be critically important for several businesses with a large percentage of hybrid workers.
2). Neobanks Will Gain More Market Share
As more and more people become comfortable banking from their computers and smartphone devices, Neobanks should become more prevalent in 2022. According to Marketwatch, Neobanks are expected to experience a 40% growth rate from now to 2027. Neobanks are financial instructions with no physical locations. Customers usually interact with their accounts through mobile apps where they can send and receive payments, earn interest on their accounts and receive loans. A major appeal of Neobanks is the fact that many of them offer much higher interest rates than conventional banks. Top neobanks include Revolut, Acorns, Chime, and the Black-owned Greenwood Bank.
3). The Boom Of Buy Now, Pay Later
As more and more people are challenged by inflation and other economic factors, the growth of buy now, pay later has exploded. The industry is expected to grow at a compound rate of 43.8% from now until 2030. Large eCommerce companies such as Amazon and financial services companies such as PayPal have their own buy now, pay later programs.
Technology and ever-shifting social and economic trends are driving how the financial world is operating. Over the next 12 months, consumers and businesses should have more options when choosing the financial services that best suit their needs.