Main trends of fin-tech in 2022: super-applications, gamification and blockchain development

1. Growth of the fin-tech sector

The financial technology sector is one of the few that has maintained its development dynamics this year and continued to develop at a significant pace. During this year, the financial results have not yet been summed up, but over the past year, a record volume of investments was recorded making $ 210 billion. Common market trends include higher consolidation, mergers and acquisitions of companies by larger market players.

Fin-tech has become the basis of all financial services: KYC (online user verification), electronic payments, peer-to-peer lending. They also record an increase in interest in cryptocurrencies and embedded finance. Since the first quarter of 2022, fin-tech startups in the world have raised more than $ 32 billion. Compared to last year, in 2022, fin-tech financing increased in total venture capital by 27%, in 2021 – by 4%.

2. Implementation of integrated solutions

This year, the number of companies offering integrated solutions has increased significantly. This applies to both banks and product and service companies. Embedded finance has become popular, i.e. the introduction of a financial product into a service that is not related to finance. The best example is the Glovo application, where you can choose food and pay for it without going to links from third-party sites. This technology can be found in online stores, accounting services, digital wallets, and telemedicine.

It is now easier to implement embedded finance due to global trends in the development of open banking, API unification and changes in the regulatory framework of most countries. In the United States, in 2021, the profit from embedded finance reached $ 20 billion, and experts predict market growth at least 2 times in the coming years.

3. Use of multifunctional applications

To understand the trend for development of super-applications, I will give an example. A Swiss knife can be used to open a bottle; there is a screwdriver and a blade there. Multifunctional applications perform several functions to choose from how the messenger allows you to communicate with friends, order breakfast, pay utilities, or joint bills. Gatner predicts that by 2027, a significant part of the world's population will use them daily. Among the market leaders is Chinese WeChat. It combines a social network, the ability to make online purchases and manage finances. First of all, the popularity of super-applications is related to the convenience and security of their use.

4. Introduction of Ukrainian super-applications

Ukraine has a strong and professional IT industry. Our country also follows the world’s leading trends, in particular regarding super-applications. The multifunctional applications include Diia, Monobank, rozetka or the leading project of our fin-tech Fund N1 neobank sportbank. Currently, the user is constantly forced to pass verification, keep accounts, and enter personal data of his /her cards. Soon, an ecosystem will be created in Ukraine that will collect all this data into one super-application.

5. Active development of blockchain and cryptocurrencies

Blockchain provides businesses with exceptional security and a new level of payment technology. Fin-tech’s next step is Web3. Cryptocurrency continues to integrate as a means of payment. Relatively new Apple Pay and Google Pay, open banking technology accelerate the process of transformation of classic card payments by Visa and Mastercard. New technologies, products and payment methods, including cryptocurrency, are being introduced.

6. Development of new accounting systems

According to the survey, during the war, 60% of entrepreneurs developed an action plan, and almost 30% - ‘roadmaps’. The requirements for accounting systems are as follows – a simple interface, convenience in managing profits and expenses. For example, Finmap or Fintellect can acquire any startup and start keeping records there.

7. Fin-tech component in marketplaces

Marketplaces are a huge selection of tools (community, screening, charts, research and selection of stocks, stock news, etc.). Among the global players, Mintos and TWINO platforms stand out. The former allows small investors to invest in highly profitable assets through diversification strategies. TWINO specializes in investment services for ordinary consumers.

8. Trend towards gamification

Adding game elements is another way to attract a customer. The most notable example of gamification in Ukraine was the kitomania campaign from Monobank. Almost a third of customers were collecting virtual ‘cats’. For three months of payment of utilities, they get a sticker "Owner". This is an example of one of the basic mechanics — collecting. People like to collect things on one basis.

And finally, here is a piece of advice to the developers of Ukrainian startups. Hostilities do not stop the development of the industry. According to the fin-tech development strategy until 2025, the NBU provides support for fin-tech projects. One of the main elements of the strategy is the creation of a fin-tech sandbox, a format of interaction between the state regulator and companies. The sandbox allows you to test new services and products on a small circle of consumers and to implement necessary legislative changes for the development of such projects. I advise you to go to a fin-tech sandbox, because investors are much more active in investing in projects that have been tested with a sandbox.

Also this year, the Verkhovna Rada adopted a law regulating the circulation of cryptocurrencies and our country joined the European blockchain partnership. Ukraine is one step closer to transition to digital funds and tighter regulatory policies.