Fintech remains a huge and diverse marketplace, while it’s one of the fastest entities of its type anywhere in the world.

In fact, the global fintech market size is forecast to grow at a CAGR of 13.9% between now and 2028, peaking at $166 billion globally at the end of this period.

In this post, we’ll look at this market’s dominant trends and technologies, while asking how they’re likely to benefit our lives and the wider economy.

#1. Blockchain

Blockchain describes a decentralised ledger technology that allows for the keeping of transparent and immutable records, with this innovation synonymous with fintech and cryptocurrency development.

Despite a recent crypto crash (which has seen the price of Bitcoin fall from nearly £50,000 in November 2021 to just £15,556.31 as of June 30^th 2022), blockchain remains a diverse technology with a broad and growing range of applications outside of cryptocurrency.

This includes traditional banking, with established and institutional lenders now looking to leverage blockchain and the notion of government-banked digital currencies while introducing open banking solutions for to their customers.

We’re also seeing a number of third-generation blockchains emerging, which are inherently scalable and designed to counter the issues associated with tokens such as Bitcoin.

#2. Sensors and the Internet of Things (IoT)

While the Internet of Things (IoT) may be a technological behemoth in its own right, it has a strong correlation of fintech and is continuing to enhance financial technology on a grand scale.

One of the best examples of this is the integration of biometric sensors into smartphones, including facial and thumb print recognition. Such innovations have helped to secure mobile payments, which are pivotal component of contemporary banking in 2022.

New York firm Kontakt.io (which was founded in 2013) has also helped to enable and secure mobile payments in real-time, primarily by utilising its proprietary, low-energy Bluetooth beacons in strategic locations.

These have assumed the pace of traditional and more expensive point-of-sale (PoS) technology, driving improved costs and efficiencies in the process,

#3. Artificial Intelligence (AI)

We’ll close with AI, which is another huge industry that’s driven by intuitive subsets such as machine learning and predictive analytics.

According to McKinsey, AI can generate up to $1 trillion in additional value for the global banking sector, while this has also combined with big data to alter the face of forex and financial market trading in the digital age.

Certainly, AI-powered trades and forex robots eliminate the risk of emotive or knee-jerk trades, while they’re also able to collate and analyse much larger datasets to drive more informed insights.

AI tools can also build models and draw data from unstructured sources such as social media, which represents a huge boon for traders who want to gauge real-time market sentiment.