# What to expect in 2022? Financial Services Trends, according to Salesforce Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2022-01-26 Category: BUSINESS Category URL: https://financedigest.com/category/business Meta Title: 2022 FinTech Trends: Embedded Finance & Financial Meta Description: Discover how FinTech is evolving in 2022, with a focus on embedded finance and financial inclusion to drive growth and resilience in the industry. URL: https://financedigest.com/what-to-expect-in-2022-financial-services-trends-according-to-salesforcehtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/istock-1341719929-1736816282890-compressed.jpg) _By **Ryan Joyce,** Head of FinTech UK&I, Salesforce_ In 2022, change will be the new normal. Embedding organisational resilience through digital transformation and building loyalty among stakeholders will be at the heart of every business leader’s agenda. There is a need for digital-first businesses that are customer-centric, data-driven, and deliver fast time to value, across all industries, including FinTech and more broadly [financial services.](https://www.financedigest.com/trends-in-the-financial-service-landscape-and-the-impact-on-fraud.html "Trends in the financial service landscape and the impact on fraud"). As we look to the [year ahead we’ve shared the trends](https://www.financedigest.com/2022-the-year-future-payment-trends-become-reality.html "2022 – the year ‘future payment trends’ become reality?") we expect to evolve in the industry. **Embedded Finance** Embedded finance is expected to generate [$7t of economic value by 2030](https://www.slideshare.net/simontorrance/embedded-finance-a-new-7-trillion-market-opportunity), and promises to fuse financial services (e-wallets, cards, lending and insurance products) effortlessly within the customer journey of any company, within any industry. The world’s leading brands will [continue to launch a variety of new propositions— in pursuit of increased](https://www.financedigest.com/multilocal-continues-hiring-spree-following-increasing-demand-for-its-services.html "multilocal continues hiring spree following increasing demand for its services") loyalty, providing unique experiences and personalisation for consumers. These new propositions embed finance as part of the customer experience, allowing these brands to collect data and insights around [consumer](https://www.financedigest.com/incoming-starbucks-boss-to-bring-consumer-insight-to-coffee-culture.html "Incoming Starbucks boss to bring consumer insight to coffee culture") spending behaviour— generating insights and enriching their customer view. As with any growth market scalability is imperative, we predict a ‘space [race’ amongst the different players to quickly launch](https://www.financedigest.com/mg-motor-launches-plug-in-hybrid-option-in-mexico-as-ev-race-heats-up.html "MG Motor launches plug-in hybrid option in Mexico as EV race heats up") products, build partnerships and continuously iterate their propositions for the greatest impact. - Embedded finance will release an avalanche of new [financial data](https://www.financedigest.com/financial-services-firms-turn-to-big-data-intelligence-to-fight-fraudulent-activity-according-to-xerox-study.html "FINANCIAL SERVICES FIRMS TURN TO BIG DATA INTELLIGENCE TO FIGHT FRAUDULENT ACTIVITY ACCORDING TO XEROX STUDY") – curated by FinTechs, and shared with global brands to generate insights around spending patterns, behaviours and transactions. Creating a single source of truth is a must. - Agility around marketing, e-commerce, sales, [service and operations— will enable brands to launch new products quickly— and more importantly iterate quickly as they sense & respond to customer](https://www.financedigest.com/revolutionising-customer-service-three-sectors-that-are-leading-the-way.html "Revolutionising Customer Service: Three sectors that are leading the way…") demands. - API [management is crucial to enable real-time processing of data between two organisations— fast decisioning to open an account](https://www.financedigest.com/exact-launches-practice-management-solution-to-help-transform-accountants-into-trusted-business-advisors.html "Exact launches Practice Management solution to help transform accountants into trusted business advisors"), originate a loan or underwrite a policy— keeping consumers ‘in-app’ for a seamless experience. **Financial Inclusion** The pandemic has illuminated inequalities across our society and laid bare the need for a new, more [resilient and inclusive economy](https://www.financedigest.com/stocks-dollar-gain-on-resilient-u-s-economy.html "Stocks, dollar gain on resilient U.S. economy"), and financial inclusion is an imperative to help reduce this inequality gap. The number of adults unbanked in the UK stood at 1.2 million in February 2020, source: [Financial Conduct Authority ‘Financial Lives’ Survey](https://www.fca.org.uk/publications/research/financial-lives-2020-survey-impact-coronavirus), leaving them financially excluded (no access to bank accounts, savings or credit— and invariably have less than a month’s salary in savings) making them vulnerable to economic shocks or loss of work. Since 2009 the ‘alternative lending’ market was established as a major pillar of FinTech— providing more choice, flexibility and [innovation to help consumers and businesses secure finance](https://www.financedigest.com/innovations-in-finance.html "Innovations in finance") at affordable rates. We can see this [trend will continue](https://www.financedigest.com/volkswagen-strikes-below-inflation-wage-deal-continues-german-trend.html "Volkswagen strikes below-inflation wage deal, continues German trend") and the rise of AI and maturity around Open Banking will improve risk management, loan underwriting and eventually hyper-personalisation enabling products that are personalised to the individual (the segment of one!) With the [customer’s success](https://www.financedigest.com/why-transforming-the-back-office-is-key-to-customer-experience-success-in-financial-services.html "Why Transforming the Back-Office is Key to Customer Experience Success in Financial Services") front and centre of these innovations, it’s not surprising that the likes of Revolut, Monzo and Monese have attracted some of the highest valuations in UK FinTech— and that Funding Circle, LendInvest and PensionBee were the first to successfully go public. The last 10 [years saw significant improvements around packaging and execution— finance](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") propositions are explained in simple English, apps are intuitive and easy-to-use and rates are far more attractive with more flexibility and choice, for example buy-now-pay-later, salary finance and invoice finance. The next 10 years promises to bring [greater sophistication around risk](https://www.financedigest.com/brexit-the-risks-to-the-city-and-fintech-have-never-been-greater.html "BREXIT: THE RISKS TO THE CITY AND FINTECH HAVE NEVER BEEN GREATER") management and personalisation to support every consumer and business— serving those that need financial support the most, but are the hardest to underwrite. The following capabilities are crucial: - [Automation – single platform](https://www.financedigest.com/banking-on-snow-automation-platform-for-success.html "Banking on Snow Automation Platform for Success") to manage marketing leads, application, decisioning, onboarding, collections and recoveries at-scale. Alternative lenders are able to communicate a decision < 10mins and distribute funds in under 7 days. Demonstrated at-scale during the pandemic, lending billions to [consumers and businesses](https://www.financedigest.com/citigroup-says-will-close-russian-consumer-commercial-business.html "Citigroup says will close Russian consumer, commercial business") during their time of need - AI/Data – single source of truth to build enriched customer profiles— more data, enables more sophisticated machine learning algorithms for lending, investing or [money management](https://www.financedigest.com/fine-tuning-your-money-management-skills-today.html "Fine-tuning your money management skills today") decisioning - API Management – combine existing data with [Open Banking](https://www.financedigest.com/how-can-open-banking-help-smbs-navigate-the-cost-of-living-crisis.html "How can Open Banking help SMBs navigate the cost-of-living crisis? ") data to enrich single source of truth. API’s also [play an important role](https://www.financedigest.com/advisors-must-play-a-bigger-role-in-unlocking-scale-up-potential.html "Advisors must play a bigger role in unlocking scale up potential") in embedding these products within 3rd party platforms for greater reach **Sustainable Finance** [Climate change is impacting](https://www.financedigest.com/climate-impacts-heading-to-uncharted-territories-of-destruction-un-chief.html "Climate impacts heading to ‘uncharted territories of destruction’ -UN chief") every country, company and individual, and we all have a role in building a more sustainable future. In the wake of COP26 we expect new [financial services](https://www.financedigest.com/how-crowdsourcing-can-help-drive-the-benefits-of-advanced-analytics-in-financial-services.html "HOW CROWDSOURCING CAN HELP DRIVE THE BENEFITS OF ADVANCED ANALYTICS IN FINANCIAL SERVICES") regulation pushing lenders, investors, and insurers to restrict capital flows towards companies that are contributing to the climate crisis— and instead allocate to companies that are radically transforming to meet their Net-Zero commitments. [GFANZ](https://unfccc.int/news/new-financial-alliance-for-net-zero-emissions-launches) is an alliance of the 160 largest financial services companies globally focussed on aligning policy and allocating capital towards green initiatives. Once any policy has been written into law, the challenge becomes execution, with [data becoming](https://www.financedigest.com/becoming-data-ready-for-mtd-for-corporation-tax-aligning-vat-and-ct.html "Becoming data-ready for MTD for Corporation Tax: aligning VAT and CT") a major dependency. Consistent metrics/taxonomy are required to [track companies ESG credentials and overlay this across a financial institutions book of business](https://www.financedigest.com/5-fx-metrics-your-business-should-be-tracking.html "5 FX METRICS YOUR BUSINESS SHOULD BE TRACKING"), analysing their macro position in real-time, whilst also providing actionable insights to coach and guide companies around their commitments. We predict these profound changes will encourage a new wave of entrepreneurs to build [companies that are solely focused on sustainable](https://www.financedigest.com/italys-eni-sets-up-sustainable-transport-services-company.html "Italy’s Eni sets up sustainable transport services company") finance— whilst existing FinTechs will also begin to pivot their propositions accordingly. **Rise of AI** Over the last decade, FinTech has changed the way people interact with [money forever— since 2008 we have seen 1000’s of apps](https://www.financedigest.com/how-to-make-apps-make-money.html "How to Make Apps Make Money?") emerge onto the scene – easy to use, simple to understand and providing greater flexibility for consumers. The next decade will see a new wave of innovation— unleashing deeper intelligence and personalisation— extending the [competitive advantage](https://www.financedigest.com/turning-big-data-compliance-into-a-competitive-advantage.html "TURNING ‘BIG DATA’ COMPLIANCE INTO A COMPETITIVE ADVANTAGE") of FinTech. This will be fuelled by AI. The themes discussed above will combine machine learning, [big data](https://www.financedigest.com/how-big-data-is-sending-shockwaves-through-the-financial-services-sector.html "How big data is sending shockwaves through the financial services sector"), automation and improved API management to deliver on the promise. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---