# Three ways that 2022 is going to change how you think about money
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-03-04
Category: TRADING
Category URL: https://financedigest.com/category/trading
Meta Title: Embedded Finance 2022: The Future of Banks and Fintech
Meta Description: Discover the top three ways that embedded finance is set to revolutionise the fintech industry next year, as analysed by Jason Ollivier of Contis.
URL: https://financedigest.com/three-ways-that-2022-is-going-to-change-how-you-think-about-moneyhtml

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_One of the most transformative trends in fintech, embedded finance found the spotlight in 2021. But what is in store for 2022?_ **_Jason Ollivier, Chief Disruption Officer at_** [**_Contis_**](http://www.contis.com/) _, looks at three key ways that embedded finance could shape the way we pay, move, and access our money in 2022._

**1\. Banking is no longer a two-horse race**

[Incumbent versus challenger](https://www.financedigest.com/launching-speed-boats-from-cruise-ships-how-incumbents-can-take-on-fintech-challengers.html "Launching Speed Boats from Cruise Ships: How incumbents can take on fintech challengers"). That’s the well-worn narrative that has dominated the entire fintech sector for years, particularly when it [comes to banking](https://www.financedigest.com/why-pay-by-bank-app-will-come-into-its-own-in-2022.html "Why Pay by Bank App will come into its own in 2022 "). But while the likes of Revolut, N26, and Starling continue to chip away at the big institutions’ [market share](https://www.financedigest.com/global-splined-sleeves-market-size-share-trend-growth-forecast-to-2031.html "Global Splined Sleeves Market Size, Share, Trend & Growth Forecast To 2031"), they have gone through a fairly turbulent couple of years.

In the meantime, a third dimension has emerged. Thanks to Banking as a Service (BaaS) technology, non-financial services companies are now in a position to give their [customers a full suite of digital banking](https://www.financedigest.com/christmas-debt-hangovers-how-banks-can-help-customers.html "CHRISTMAS DEBT HANGOVERS: HOW BANKS CAN HELP CUSTOMERS") services, from issuing payment cards to payments rails. A new [set of challengers have arrived](https://www.financedigest.com/unilever-ceo-set-to-leave-after-gsk-debacle-arrival-of-activist-investor.html "Unilever CEO set to leave after GSK debacle, arrival of activist investor").

The scene is set for incumbents to double down on their innovation agenda in 2022. Innovation is once more a business imperative for [firms who wish to survive and thrive in an increasingly unpredictable world of rising](https://www.financedigest.com/analysis-rate-rises-pile-pain-on-sme-firms-in-u-s-and-europe.html "Analysis-Rate rises pile pain on SME firms in U.S. and Europe") inflation and supply-chain crises.

Ultimately, the big banks still have their hands full with [legacy systems](https://www.financedigest.com/retailers-weighed-down-by-their-own-legacy-systems-survey-reveals.html "Retailers Weighed Down by their own Legacy Systems, survey reveals"), multibillion-dollar loan books and huge batch reconciliations. This means they are much more likely to invest in fintech to [fill the gaps](https://www.financedigest.com/analysis-energy-hungry-europe-cant-look-to-u-s-shale-to-fill-any-opec-gap.html "Analysis-Energy hungry Europe can’t look to U.S. shale to fill any OPEC gap") because they don’t have the manpower to innovate themselves.

This will in turn suit many in the [fintech ecosystem who are finding the transition](https://www.financedigest.com/3-key-ways-you-can-transition-from-finance-to-fintech.html "3 key ways you can transition from finance to fintech") from shiny new start-up to serious growth player more of a struggle than first anticipated. There’s a mutual advantage here, if both parties are smart: [banks can take advantage of the innovation of others while fintechs](https://www.financedigest.com/attacking-banking-and-fintech-fraud-head-on-through-ai-infused-strategies.html "Attacking Banking and Fintech Fraud Head-On Through AI-Infused Strategies ") get the injections of both cash and stability that customers have been looking for but not always found.

At the same time, we can also expect the number of banks experimenting and evolving their [business models towards a collaborative](https://www.financedigest.com/5-ways-cfo-and-cio-collaboration-can-benefit-the-business.html "5 Ways CFO and CIO collaboration can benefit the business") platform approach to increase. The pandemic has blown much of the froth off of the fintech sector: what remains is a serious commitment to workable, open solutions that put customers first while never forgetting the fundamentals of sustainable [business development](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").

**2\. [Instant payments](https://www.financedigest.com/5-ways-to-maximise-the-value-of-instant-payments.html "5 ways to maximise the value of instant payments") will become more widespread across Europe**

[Banks will also need to adapt their own payments](https://www.financedigest.com/5-ways-banks-can-compete-in-payments.html "5 ways banks can compete in payments") offering as demand for alternative payment methods continues to rise.

The [European Payments](https://www.financedigest.com/more-banks-join-european-instant-payments-pilot-from-end-2023.html "More banks join European instant payments pilot from end 2023") Initiative, which aims to create a unified, pan-European payment solution based on instant payments, is gaining momentum. Already, 31 [banks had signed](https://www.financedigest.com/axion-swiss-bank-and-avaloq-sign-long-term-contract-for-bpo-services.html "Axion Swiss Bank and Avaloq sign long-term contract for BPO services") up and the first useable applications are set to be rolled out in 2022.

Of course, as the past few years has made clear, making predictions [comes with certain risks](https://www.financedigest.com/analysis-watch-out-risk-assets-the-rout-in-bonds-is-coming-your-way.html "Analysis-Watch out risk assets, the rout in bonds is coming your way"). Only time will tell whether the EPI can succeed in enabling the EU’s millions of customers and merchants to make [cross-border payments](https://www.financedigest.com/why-blockchain-could-represent-the-future-of-cross-border-payments.html "Why blockchain could represent the future of cross-border payments") in real time. Nonetheless, we can [say with some confidence that in 2022 other payment networks](https://www.financedigest.com/single-broadband-network-is-right-step-for-italy-vivendi-says.html "Single broadband network is ‘right step’ for Italy, Vivendi says"), banks, and businesses will sharpen their own instant payments offering, either in preparation for, or in competition with the EPI implementation.

This is an area with plenty of room for movement. Yes, instant payments are widely used across the continent. But the truth is that the [industry is still far from realising the full potential of instant payments](https://www.financedigest.com/open-banking-the-real-step-change-for-the-global-payments-industry.html "Open banking: The real step change for the global payments industry"). [Instant salary drawdowns via payroll](https://www.financedigest.com/instant-view-us-may-payrolls-rise-up-than-expected.html "Instant View: US May payrolls rise up than expected"), emergency insurance disbursements, and real-time business-loan pay-outs are all possible – theoretically at least.

The [next 12 months should therefore see not just an uptick in instant payment](https://www.financedigest.com/the-next-frontier-of-payments.html "The next frontier of payments") volumes, but also a wider range of use cases being adopted to meet business needs as they evolve.

**3\. [Demand for spending digital](https://www.financedigest.com/veraviews-welcomes-hoopla-digital-as-a-demand-partner.html "VeraViews Welcomes Hoopla Digital as a Demand Partner") assets will continue to grow**

Finally, 2022 should be the [year that crypto currencies go from fringe investment](https://www.financedigest.com/liverpools-new-chinatown-perfectly-positioned-for-property-investment-this-chinese-new-year.html "Liverpool’s New Chinatown perfectly positioned for property investment this Chinese New Year") concept to something even incumbents and established fintechs cannot ignore. 2021 saw the first steps being taken in this direction: Mastercard announced that any [bank or merchant on its network will soon be able to integrate crypto](https://www.financedigest.com/new-u-s-sanctions-for-russian-bank-oligarchs-crypto-miner-bitriver.html "New U.S. sanctions for Russian bank, oligarchs, crypto miner BitRiver") services into their products, while PayPal now allows its customers to use crypto as a form of online payment.

It is often forgotten that crypto currencies were always intended to eventually serve as a spendable alternative to fiat currencies, and not just as a niche [investment vehicle](https://www.financedigest.com/bmw-invests-1-7-billion-to-build-electric-vehicles-in-u-s.html "BMW invests .7 billion to build electric vehicles in U.S"). 2022 could well be the [year in which innovative use cases for crypto and digital assets will become](https://www.financedigest.com/scottys-little-soldiers-become-incentive-fm-groups-chosen-charity-in-three-year-partnership.html "Scotty’s Little Soldiers Become Incentive FM Group’s Chosen Charity In Three Year Partnership") widespread.

Will you be able to pay for a coffee by drawing down on your [art collection as a spendable asset](https://www.financedigest.com/art-on-superyachts-what-to-do-when-one-luxury-asset-houses-another.html "Art on superyachts: what to do when one luxury asset houses another")? Perhaps not this year. But soon. A [future in which anyone can make any payment](https://www.financedigest.com/the-future-of-biometrics-in-payments.html "The Future of Biometrics in Payments") of any value, at any time and in any location is getting much closer – and with it a virtual European, even global, economy.


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