TINK: 2022 INDUSTRY PREDICTIONS

– Daniel Kjellén, CEO & Co-founder at Tink

 

  1. The shift to open finance and open data continues

“Open banking’s evolution into open finance will continue to pick up pace. At Tink, we have been talking about this innovation for the best part of a decade. But the pandemic has accelerated the shift to digital, and changes that we expected to take a decade more are now happening. As the shift to open finance and open data accelerates, it will encourage a healthy and competitive industry and vibrant financial ecosystem — enabling innovative new products and services to be created. This will give consumers and businesses more choice and control over how they manage their finances.”

 

  1. Financial wellbeing and inclusion gaining increased attention 

“Financial inclusion will be another major theme in 2022. According to the World Bank, almost 1.7 billion people across the globe are unbanked. Open banking has the ability to drive accessibility in financial services, creating more personalised and cost-effective products for all kinds of customers. I therefore expect there to be a flow of investment going to startups that enable the underbanked greater access to the financial system using a more holistic picture of their data. 

“Not only does this serve the UN’s financial inclusivity aims, but it also expands the customer base of traditional banks – a reflection of how fintechs and traditional financial institutions can increasingly work together to achieve a common goal.”

 

  1. Open banking payments will boom

“There’s no denying that open banking payments is a rapidly growing market, which is a huge opportunity for the sector to mature. From frictionless payments to providing secure and simple ways to pay — the benefits for merchants, payment providers, open banking operators, and consumers alike are enormous. 

“Now that open banking tech is mature enough, the payments industry has the opportunity to fully leverage the innovation we’ve already seen. I expect 2022 will be the year many new products come to market to give everyone more freedom and choice in how they pay and receive payments.

 

  1. The year of sustainable innovation 

“COP26 was a lightning rod for consumers and businesses. It signalled to all of us that we need to do more to reduce our impact on the environment. As such, I expect to see even more fintechs creating products and services that help consumers and businesses meet their environmental and social obligations. From green loans and mortgages to checking accounts with sustainability and carbon-tracking features, 2022 will be the year of sustainable innovation.”

“Open banking itself will play a huge role in how businesses meet regulatory requirements for sustainability, such as mapping investments against ESG ratings, understanding the risk profile of customers, and accessing or providing loans to fund change throughout society. The need for data sits behind many of these issues, either from within an organisation itself or through a data outreach programme towards its customers. 

“At the retail level, by aggregating and enriching account data, open banking powers consumer apps that enable individuals to track, understand and change their behaviour to improve their carbon footprint. NatWest is a great example of a bank taking huge strides in this area — recently launching a carbon tracker within its money management app in partnership with Cogo and Tink – to help NatWest customers reduce the climate impact of their spending. Open banking is key to creating more of these solutions which is likely to be a bigger focus for financial institutions next year.”

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