Top FinTech Trends in 2022

Updated: Jan 31

What may 2022 bring in predictions for this year ahead? The Financial Technology (FinTech) sector keeps growing fast and will continue to have a huge opportunity to drive financial inclusion and have impact on consumers’ day to day lives. We will see more sophisticated and specialized FinTech products taking place across the board while the whole industry will transition into the largest funded category with some $130 billion already invested globally.


Here some areas that are worth the focus in 2022:




Decentralize Finance (DeFI)


Decentralize Finance (DEFI) is still in in the early stages of its evolution but will peak with a total value Locked (USA) in DeFi contracts of $96B (https://defipulse.com/) as of the 17th of January 2022 . DeFi platforms like Ethereum , Avalanche and Solana are enabling companies to create smart contracts directly on their blockchain fostering more adoption as smart contract algorithms make blockchain-based services accessible for companies . These smart contracts or agreements involving two or multiple parties make trustless agreements immutable, tamper-proof and possible without the need of intermediaries increasing the adoption rate in banking, supply chain, insurance and real estate.


Non-Fungible Tokens (NFTs)


NFTs have been one of the hottest trends in 2021 enabling countless use cases for blockchain beyond just art or digital collectables. The music industry was one of the first to embrace NFTs as artists tokenized their songs and started selling them directly to their fans. NFTs will keep pushing in new gaming era in 2022 with the tokenization of in-game assets letting gamers become owners of their items which they can sell on NFT marketplaces for cryptocurrency.

Cryptocurrencies


With a total market value of $ 2.2 Trillion, this rapidly growing sector will go mainstream with still uncertainties to be expected. We will see a more regulatory framework pushed by the FATF and other regulatory bodies which will be challenged with innovation and the rapid pace of change to keep up in this space. The U.S. Securities and Exchange Commission (SEC) will most likely get the formal oversight authority of cryptocurrencies.


Read more on Crypto in 2022 at Scorechain


Regulatory Technology (RegTech)


Investment in the RegTech sector will keep growing with laser-focused compliance solutions replacing legacy and outdated compliance processes with new complex regulations taking effect. Investors appetite for deals during the pandemic has only gone on with as a result, funding hitting $18.9 billion in 2021 doubling figures compared to 2020.

Read more at RegTech Analyst


Entering the Metaverse and Web3


Metaverse and web3 will be on the rise. The concept of virtual metaverse whether centralized or decentralized will become popular increasing engagement with a new level of communication and content creation with its own comprehensive economic ecosystem according to Mark Zuckerberg. Web3 could potentially be the World Wide Web on steroids based n blockchains, which incorporates concepts including decentralization and token -based economics.


Need help with your AML Compliance Program?


Having the right AML Controls (e.g. customer identification, sanction screening, transaction monitoring) , technology and expertise from established professionals can help them successfully design and implement an AML program scaled to fit a FinTech | Digital Assets model, including a detailed review of the business and prepare effectively a compliance roadmap and culture


Here at UGR, we will help you navigate with success regulations, compliance and AML/KYC requirements needed in your growth journey. We have some of the finest industry experts covering multiple jurisdictions and work with the best digital asset compliance solutions in the industry to meet all your requirements. Our Compliance As a Service (CaaS) allows you to plan, prioritize, and execute against strategic compliance projects and technology initiatives while matching your budget and pay as you need.


Contact us today for a free 30 min consultation!





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