The last two years have marked significant development and change in all areas of the finance industry from payments to ESG investing.
This article lists 15 facts that you should know about the finance industry in 2022.
1. Payments businesses represented nearly
a quarter of all fintechs launched and funded from 2015 to 2020.
2. Today, fintechs account for around
5% of banking revenue in the US and as much as 20% in payments-related fields.
3. According to the
Boston Consulting Group, global payments revenue is expected to grow by 7.3% between 2020 and 2025, with the total revenue pool estimated to reach $2.9 trillion by 2030.
4. Narrowing in on contactless payments,
Forbes has stated that the contactless payments market will grow from $10.3 billion in 2020 to $18 billion by 2025.
Related course: Payments
5. Tech spending by banks in 2022 is expected to achieve
double-digit growth.
6. The pandemic has turbocharged digital adoption for retail banks. According to
Deloitte, 44% of retail banking customers said they are using their primary bank’s mobile app more often. This rise will no doubt contribute to continued closures of physical bank branches in 2022.
7. This trend is evident for commercial banking also. Bank of America’s business banking app witnessed a
117% growth in mobile check deposits last year.
8. Digital transformation in the banking industry also comes in the form of strategic moves by big tech companies. Apple and Amazon have the possibility of grabbing
up to 40% of the $1.35 trillion in US financial services revenue from incumbent banks with products such as the Apple Card and Amazon Pay.
9. According to
Forbes, financial activities such as trading will soon be decoupled from physical facilities using technologies such as zero-trust networks that enable location-independent secure access.
10. Digital gig work is expected to grow to
$455 billion by 2023, according to a recent Mastercard study. Gig workers have traditionally been shunned by financial services because they represent a high-risk demographic. But thanks to technological advancements in the financial sector, institutions can now conduct thorough risk assessments, which could make gig work worthwhile.
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11. In 2021, banks opened their balance sheets to lend. According to
McKinsey, loans grew at 11% last year, five times greater than predicted, this was boosted by China (20%) and Europe (9%).
12. As the global banking environment continues to evolve in 2022, some smaller banks may pursue mergers and acquisitions opportunities for scale. According to
Deloitte, 57% of smaller banks (annual revenues of $1-5 billion) said that their institutions could pursue M&A activities over the next 6-12 months.
13. In 2019, climate finance flows reached approximately
$600 billion, this represents an increase of 75% from 2013. This growth has been driven by asset classes such as green bonds and green loans.
14. There appears to be no slowdown of this growth as major players in the market commit to sustainable finance plans. For example, Goldman Sachs announced that it will deploy
$750 billion across investing, financing, and advisory activities on sustainable finance themes such as climate transition and inclusive growth by 2030.
Related course: SRI and ESG Investing15. Moves towards more sustainable investing in 2022 will go further than just climate action,
PWC’s latest ‘Act Now’ found that 60% of UK investors are more likely to finance companies with a diversity and inclusion policy, highlighting the importance of diverse and equitable workplaces.
The rate of change brought on by the pandemic shows no sign of slowing down. As emphasized by these figures, 2022 looks set to be another record year of growth and evolution in the finance industry.
If you would like to learn more about any of the topics discussed in this article why not enroll in one of our on-demand online courses in topics such as Payments, ESG Investing and Banking and Finance.
