# The Future of Fintech: Robo-advisers, Analytics and DIY Finance
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-01-26
Category: FINANCE
Category URL: https://financedigest.com/category/finance
Meta Title: Fintech Forecast 2022: Hyper-Digitalisation and Future Trends
Meta Description: Discover the latest trends in the fintech industry for 2022, including the rise of cloud banking, AI, and predictive analytics. Stay ahead of the curve with
URL: https://financedigest.com/the-future-of-fintech-robo-advisers-analytics-and-diy-financehtml

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_By **Matthijs Aler,** CEO of_ [_Ohpen_](https://ohpen.com/home/about)

A new era of opportunities and hyper-digitalisation took the fintech industry by storm in 2021 as a result of the pandemic. And it’s showing no sign of slowing.

Cloud banking has taken giant steps forward with industry-leading executives expressing their optimism and ambition for the move towards cloud-native financial services. This shift towards digitalisation has been accelerated by the pandemic, which saw banks’ workforces move to remote [working across the financial](https://www.financedigest.com/turning-a-blind-eye-wont-work-for-financial-firms-as-the-fca-tightens-its-grip.html "TURNING A BLIND EYE WON’T WORK FOR FINANCIAL FIRMS AS THE FCA TIGHTENS ITS GRIP") landscape. As a result of this, many institutions have become aware of the [benefits of transferring services onto the cloud](https://www.financedigest.com/can-finance-reap-the-benefits-of-the-cloud-without-compromise.html "Can finance reap the benefits of the cloud without compromise?"), as well as its potential for improving operational efficiency and creating a customer-first experience. What’s more, the rapid [growth of the fintech industry further challenged](https://www.financedigest.com/retreating-up-the-risk-curve-is-no-solution-to-the-growth-challenge.html "Retreating up the risk curve is no solution to the growth challenge") the status quo in the B2B and B2C worlds, offering a smoother and diversified range of payment options.

Now, with another chapter of [remote working](https://www.financedigest.com/shoring-up-cyber-defences-in-the-remote-working-era.html "Shoring up cyber defences in the remote working era") and prolonged pandemic lifestyle changes on the horizon, the forecast for business and customer circumstances looks both fluid and complicated. These highly specialised needs will require equally contemporary technological solutions to [cater for each unique circumstance](https://www.financedigest.com/how-a-british-brand-catered-to-hnwis-can-maintain-its-position-within-the-global-luxury-sphere-and-even-grow-in-these-current-circumstances.html "How a British brand catered to HNWIs can maintain its position within the global luxury sphere, and even grow, in these current circumstances"). It is here that partnerships across the fintech landscape will make their impact in 2022 by enabling customised [financial services](https://www.financedigest.com/4-ways-high-performance-analytics-powers-financial-services.html "4 ways high-performance analytics powers financial services") and products, as well as reducing their required time for market launch.

**The** [Human vs Machine paradox](https://www.financedigest.com/the-rise-of-the-machines-vs-the-human-touch.html "The rise of the machines vs the human touch")

This evolving tech saga will enter yet a new chapter in 2022. For certain financial processes such as insurance and some [investment propositions, robo-advisors and background automation are set to become more](https://www.financedigest.com/uk-becoming-less-attractive-for-investment-manufacturers-warn.html "UK becoming less attractive for investment, manufacturers warn") prominent across the board.

Across other complex products such as mortgages, [robots are unlikely to replace humans](https://www.financedigest.com/robots-are-making-french-fries-faster-better-than-humans.html "Robots are making French fries faster, better than humans") any time soon. [However, the hybrid balance is set to shift significantly](https://www.financedigest.com/record-numbers-resign-in-france-as-bargaining-power-balance-shifts-labour-ministry.html "Record numbers resign in France as bargaining power balance shifts -labour ministry"). Across mortgage and loan origination and underwriting processes, robo-advisors will increasingly pull [together the data across these functions at speed to arm customer](https://www.financedigest.com/how-payment-institutions-can-leverage-data-to-support-merchant-customers.html "How payment institutions can leverage data to support merchant customers") facing advisors. This will certainly push human consultation further towards the end of processes, [yet paradoxically get the customer to reach it](https://www.financedigest.com/sovereign-bond-yields-not-yet-reached-a-summit-reuters-poll.html "Sovereign bond yields not yet reached a summit – Reuters poll") much quicker, sparing them of dozens of online forms in the process.

Friendly, professional advice will forever remain the most vital link in [the financial chain](https://www.financedigest.com/g7-finance-leaders-pledge-financial-stability-supply-chain-diversity.html "G7 finance leaders pledge financial stability, supply chain diversity"), yet this move from 50/50 robo-human to 75/25 will better leverage the power of human analysis, locking in consumer confidence from start to finish.

[**Predictive analytics**](https://www.financedigest.com/predictive-analytics-a-new-way-of-insuring-success.html "Predictive analytics: a new way of insuring success") to supersede **linear business models**

With the pandemic’s impact set to keep rippling through [consumers’ personal finances next year](https://www.financedigest.com/2019-year-must-re-build-public-trust-finance.html "2019 is the year we must re-build public trust in finance"), advanced predictive analytics will be a crucial part of credit and arrears management strategies. Working on both macro and micro levels, AI will continue to find patterns in complex data, and pick up trigger points across [consumers’ financial](https://www.financedigest.com/uk-consumer-mood-hits-one-year-high-but-financial-gloom-persists.html "UK consumer mood hits one-year high, but financial gloom persists") behaviour – for example spotting credit problems before they escalate.

With algorithmic trust growing [across business, financial advisors will look to AI to predict exactly which accounts and clients may need monthly interest and loan repayment support](https://www.financedigest.com/fintechs-support-of-ukraines-digital-businesses-can-be-used-as-blueprint-across-the-world.html "Fintech’s support of Ukraine’s digital businesses can be used as blueprint across the world"). In fact, this [trend will continue well beyond 2022, as digitising the credit space becomes](https://www.financedigest.com/2022-the-year-future-payment-trends-become-reality.html "2022 – the year ‘future payment trends’ become reality?") increasingly important. Data-driven tech will supersede traditional linear [business models when it comes to supporting](https://www.financedigest.com/how-banks-will-evolve-to-support-small-business-owners.html "How banks will evolve to support small business owners") today’s growing gig economy and flexible work situations. We are set to see [financial institutions](https://www.financedigest.com/3-ways-financial-institutionscan-leverage-live-engagement-on-social-media.html "3 ways financial institutions can leverage Live Engagement on social media") become one-to-one support networks, using data to build tailored experiences for every single customer.

**DIY finance** **2.0**

However, the potential for AI is far greater than all this. This [power of AI-led prediction will eventually be handed directly to the consumer](https://www.financedigest.com/gumgum-powers-into-europe-as-new-research-shows-consumers-reject-behavioural-ads.html "GumGum Powers into Europe as New Research Shows Consumers Reject Behavioural Ads"), too. In fact, we are about to [see unprecedented levels](https://www.financedigest.com/fraport-sees-2023-passenger-traffic-at-80-90-of-pre-pandemic-levels.html "Fraport sees 2023 passenger traffic at 80-90% of pre-pandemic levels") of data, information and guidance built into consumer omnichannel experiences.

Financial institutions have already stepped up their digital offering for consumers – but 2022 will see heightened consumer autonomy across personal [finance management](https://www.financedigest.com/how-parents-can-help-students-manage-their-finances.html "How Parents Can Help Students Manage their Finances"). Recognising the benefits for all parties, in a pandemic age of helping customers help themselves, the [savviest banks and financial services providers will offer up more predictive](https://www.financedigest.com/2020-banking-predictions.html "2020 Banking Predictions") analytics directly to consumers across digital channels that are powered from modern cloud core-banking platforms. This will empower consumers to better control their bills, debts, cash and loans autonomously, lowering credit risks for the [financial services](https://www.financedigest.com/the-future-of-financial-services-tech-evolution-not-revolution.html "The future of financial services: Tech evolution not revolution ") providers involved. Likewise, as data becomes more structured, explainable and aggregated – [financial institutions](https://www.financedigest.com/the-future-of-financial-institutions-in-2023.html "The Future of Financial Institutions in 2023") will finally have a 360-view of their customers, enabling them to open up a new world of tailored propositions.

**Following the path to digitalisation in 2022**

From this year, fintech [developments have the potential to deliver more time and customisation for both businesses](https://www.financedigest.com/reasons-to-hire-a-web-developer-for-your-business-website.html "Reasons to Hire a Web Developer for Your Business Website") and individuals. Consumers are closer than ever toore digitally-empowered financial autonomy, as [advisers and financial](https://www.financedigest.com/top-north-east-financial-adviser-firm-talks-corporation-tax.html "Top North East financial adviser firm talks corporation tax") institutions streamline their manual processes and focus their expertise on what’s important for customers.

To be successful, however, it is imperative that fintechs enter the new year aiming to empower their customers’ financial lives, armed with the necessary [banking technology to enable true digital experiences](https://www.financedigest.com/the-rise-of-virtual-agents-the-future-banking-experience.html "The rise of virtual agents: the future banking experience").


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