The FinTech market will remain hot in 2022: Digital banking, connectivity, open banking, and crypto are the future trends that will continue to dominate the industry this year, according to the experts at 21finance. In addition, the IPO market for FinTechs is also likely to see a lot of activity. For the Liechtenstein FinTech itself, the signs are pointing to growth.
“Digital banking is not just a buzzword, but the future of banking,” Max J. Heinzle, CEO of the Liechtenstein FinTech 21finance, is certain. This development is progressing even faster than assumed due to the pandemic. “Covid-19 has prompted many banks to convert large parts or even their entire organization to digital banking. That’s why most institutions are already working with FinTechs,” Heinzle said. In addition, paper-based processes will soon disappear entirely from banking and finance, according to the expert. “More and more institutions will also offer their services completely digitally this year. This is because new technologies bring such elementary advantages that their use can no longer be avoided if you want to remain competitive.”
Speaking of collaboration, “2022 is also under the star of connectivity,” says Heinzle. This megatrend of the 21st century – the principle of networking based on digital infrastructures – will also become more prevalent in the financial industry. “As was the case last year, more alliances will form in the market this year. Banks are cooperating with FinTechs, FinTechs with FinTechs. This invigorates the industry and brings forth new, exciting cooperation opportunities and business models,” analyzes the 21finance CEO.
Open banking becomes standard
One of these models that have already formed from such alliances is Open Banking. The term refers to the opening of banks to other service providers such as account information services or payment initiation services (a well-known example is “SOFORT-Überweisung”). This collaboration between banks and non-banks – which involves the use of open technology platforms, knowledge sharing, and the sharing of work environments, data, and customer bases – generates new services and products. “In accelerating payment processes and information sharing, Open Banking has already stood out in a positive way. In 2022, this model will continue to spread through new market entries and establish itself as the standard in the long term,” Heinzle is convinced.
Things will be exciting on the trading floor: for example, in 2021 a number of FinTechs will have achieved unicorn status (start-up with a market valuation of more than one billion US dollars), five in Germany alone. “It is to be expected that IPOs will follow the successful financing rounds at some unicorns this year,” Heinzle said.
Crypto hype continues
Unsurprisingly, some of these unicorns are in the crypto space – after all, it remains a driver of the FinTech industry. Heinzle says, “The massive investments in cryptocurrencies in 2021 were just a taste of what we will see this year. Institutional investors will also increasingly tap into the market and make more blockchain investments.” In addition, more players will enter the market, led by NFTs and custody and wallet providers.
Prepared for 2022
Growth is also the focus at 21finance itself – and in all areas. “In 2022, we will open up new markets with our MaaS solution in sales, fundamentally expand our team and also the IT setup,” explains Heinzle. The MaaS software (Marketplace as a Service) of the Liechtenstein FinTech is a white label solution that can be integrated into existing infrastructures. It is aimed at banks as well as financial intermediaries and enables a quick entry into the world of digital direct sales. Banks receive professional help with their digitization strategy and are able to expand their traditional range of products and services with technology-driven assets such as tokenized securities or cryptocurrencies – digitally. “In the long term, we want to establish ourselves in the banking industry as the leading contact for digital software and service solutions for the optimization of sales channels,” Heinzle concludes.
About 21.finance AG
Founded in 2017, 21.finance AG’s “Marketplace as a Service” (MaaS) software solution enables banks, financial intermediaries, and non-financials to create their own marketplace and distribute their products through it. With their own digital and legally compliant online shop for financial products, the fintech’s customers can optimize their sales channels to increase assets under management, reduce operating costs, acquire new customers and ultimately open up new revenue channels. The white label solution gives them access to software and support services to provide a fully digital and regulated investment experience for their investors. Learn more about 21finance at www.21.finance.
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