Despite pandemic-induced delays, 2021 was still a strong year for financial technology or fintech industry growth. As the world gets used to the "new normal" way of life, what to expect in fintech is still a debatable question.

FREMONT, CA: CB Insights' latest “State of Fintech”  report highlights that the third quarter of 2021 was the second-highest on record for fintech financing with an impressive 147 percent growth year-over-year regardless of the delays caused by the pandemic. However, as life sets into new normal, what to anticipate from the fintech is an issue open to question.

As the name implies, Embedded finance allows businesses to provide credit to customers without requiring them to leave their platform. Payments, card payments, lending, investments, insurance, and banking are all examples of embedded finance. Embedded assets make investing even more accessible by providing quick and low-cost access to funds and equities. The buy-now-pay-later option is another important aspect of embedded finance that is on its way to becoming commonplace in 2022. PayPal processed over 750,000 BNPL transactions on Black Friday, up 400 percent from 2020. Seventy-two percent of BNPL app users reported that using the services harmed their credit scores. The millennial and Gen-Z demographics are the most appealing to the BNPL market. The surge in popularity of BNPL and the pandemic's financial consequences are expected to result in $680 billion in transactions in 2025.

Consumers and businesses alike are excited about Web3, which will give them more control over their digital assets. By decentralizing the internet and reconstructing it on the blockchain, Web3 hopes to change that. Defi allows peer-to-peer transactions without the use of financial intermediaries like banks. Leaders in the Web3 domain are likely to begin bringing solutions to the concerns of consumer protection, accessibility, and usability in 2022. This might establish a lot more trust in the public, making it more likely for them to adopt it extensively.

As cryptocurrencies, the Metaverse, and virtual reality grow more mainstream, 2022 is projected to be a watershed year for blockchain technology, as Web3 becomes safer and more accessible. Financial institutions are attracted to the blockchain because of the exceptional security it provides to both parties in a transaction, particularly when it comes to identity management. Blockchain is also increasingly being utilized to combat fraud. As firms seek creative methods to digitize and simplify all aspects of their operations, the benefits of blockchain and the emergence of cryptocurrencies may lead to increasing demand for blockchain-as-a-service (BaaS).