The Global Fintech Revolution: Future Trends Driving Innovation Leaps Globally

Fintech 3.0 is coming. Deep dive into the trends that are a driving force for change in financial services in our latest report.

Globally, the financial services industry is on the cusp of radical transformation as new Fintech is no longer just enhancing traditional processes, but completely reimagining the financial world. We’re seeing new digital-only banks and insurers set new standards for customer experience through AI, hyper-personalisation, and mobile services. These digital leaders are blazing a trail into Fintech 3.0, while traditional corporates remain entrenched in phase 2.0 – focusing on creating new digital business models and partnerships.  

Meanwhile, investors are realising the value potential of global Fintechs. In 2021, a record $210 billion was invested in Fintech worldwide – a 68% increase on the previous year. In particular, Israel’s Fintech sector has witnessed exponential growth with a 300% increase in +$100M funding rounds in 2021. Often referred to as ‘The Start-up Nation,’ Israel now boasts 80 unicorns, with Fintech companies accounting for 17% of this impressive roster.


A preview of Fintech Trends for 2022

Our latest research report details the hottest Fintech trends set to continue to change the face of financial services.

Download the report for the full analysis, plus gain insights into how multinationals are leveraging Israel’s tech ecosystem to innovate.

Thanks to the explosion of eCommerce from COVID-19, international transactions offer enormous growth potential for small businesses. Based on a study published by Accenture, the total global cross border payment flow is growing around 5% (CAGR) a year and tipped to top US$156T by 2022.

Cloud banking and free-floating financial platforms are already changing the way people bank. Customers can now open virtual bank accounts in a matter of minutes from a mobile device and instantly start choosing personalized products and services tailored to their needs.

Investments in cryptocurrencies and blockchain technology jumped from $5.4B in

2020 to over $30B in 2021 – a ~450% increase. It promises to revolutionize everything from

storing customer or transaction information, to tracking financial records and more. Fast, truly global, and with low fees, blockchain remains on track to completely change the face of financial transactions around the world.

The rise of AI, ML, and robotic process automation provides multiple benefits to those in the financial industry, such as decreased risk from loan defaults, better risk management, operational improvements resulting from data collection and analysis, and enhanced customer experiences.

As banks adjust to evolving regulations, customers will benefit from the creation of APIs to their data. With PaaS, institutions can adapt to changing needs with customized infrastructure that allows them to embrace cloud platforms fully.

One of the biggest upcoming trends is financial institutions moving towards seeing

opportunities instead of competition from new tech start-ups. Incumbent and start-up partnerships provide mutual benefits – reduced lead time for in-house digital projects for incumbents and faster growth for start-ups looking for investment.

Upcoming technology ensures that networks can handle higher volumes of transactions and provide a reliable experience. As more consumers leave behind their credit and debit cards, financial institutions that adopt digital payment features will attract and retain customers.

The coming years will see payroll options like salary-on-demand, salary advances, crypto payroll, and early direct deposit come into the mainstream.

The global payment sector has received $51.7B in investments in the past year. The acceleration of digitization processes, the increasing use of non-contact payment options and the demand to provide alternative payment models, such as the trendy “Buy Now, Pay Later” (BNPL), have made the payments sector particularly vibrant.


The past few years have seen significant interest in Regtech and Insurtech along with dozens of other hybrids that give conventional organizations a way to update infrastructure and cut long-term costs. Fintech start-ups will continue to capture more of the market through strategic partnerships and consolidation.

Embedded finance has been a growing trend over the past year and is well-positioned to grow even further. Many banks are becoming service providers to non-bank and non-financial institutions looking to deliver a customer experience or service proposition involving financial services as a component of a larger offering.

The increase in financial products or services embedded within and delivered through non-regulated entities are expected to drive greater levels of regulatory awareness and intervention over the next 6 to 12 months as regulators look to protect customers by clarifying issues like accountability and available recourse.

Many Fintechs will likely reinvent themselves into data organisations and data providers that happen to provide payments and other financial services to differentiate their

organizations amongst investors and the market.

Given the growing prioritisation of ESG more broadly, there will likely be increasing interest in Fintechs with ESG capabilities, including companies focused on climate change, decarbonisation, and the circular economy.

Investors will ramp up their targeting of jurisdictions considered to be underdeveloped or emerging financial services markets — making more deals in regions like Africa, Southeast Asia, Latin America, and the Middle East.

COVID-19 has made non-contact payment mainstream. MasterCard reported a 40%

increase in mobile wallet usage during 2021, and are expecting this trend to continue in the future. There are several types to watch in the coming months, including QR code, peer-to-peer payments and NFC payments.

Read more Axell insights


Read more Axell insights

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