Its market value is estimated at 43 billion dollars in 2026. We are talking about open finance, a sector in continuous growth especially after the revolution accelerated by the pandemic, which has pushed more and more people to rely more on digital and tailor-made services made available by institutes and come on player fintech. From Fabrick here are the potential trends of 2022 in areas such as open banking, open payment is fintech.
Digital identity and new services
In the open banking segment, strong growth in usage models based ondigital identity. The latter has established itself in Italy with the introduction of the Spid, and is an enabling technology now ready to be used for meet customer expectations who ask for increasingly integrated products. In this field, the creation of information circuits based on APIs is foreseen, for a trend that will mainly concern banking, telecommunications and insurance subjects: proving one's identity will therefore become more and more one commodity. And this not only in the context of the public administration.
Another important line of development will be substantiated in the expansion of open data at a systemic level, even beyond what is the current perimeter of PSD2. Large corporates, including banks and insurance companies, will find themselves in a position to acquire an increasing number of data to be exploited to their advantage for the implementation of new proposals and, at the same time, will have the possibility of establish itself as a data provider.
Buy now, pay later
In the e-commerce field, i payments from current account and, according to Fabrick, there will be an increase in the percentage of market that will switch to cardless and account to account schemes, as in the case of payment Pay by link. This model in particular will find wide application throughout the insurance and utility world, with an increasing diffusion in Italy and in Europe over a period of two / three years.
The theme of the online payment security. Strong Customer Authentication (customer authentication through a multifactorial system), already possible with ApplePay is GooglePay, it will become simpler and will also be available to smaller merchants. This trend will be accelerated by the fact that realities like Visa and Mastercard will launch click to pay payment products with the aim of improving the experience.
The Buy Now Pay Later, a mode exploded in China that allows online purchases to be paid in installments, will confirm a strong trend also for 2022, especially in consideration of the estimates and the penetration it has on retail. The phenomenon has exceeded 90 billion dollars in 2020 and is expected to reach i 3 trillion dollars by 2030. In Italy an increase of 28.6% is expected between 2021 and 2028. If this is a trend that has emerged decisively in 2021, next year will see it develop around it services complementary such as, for example, the development of forms of financing that support the expenditure. In the future, however, the risks associated with over-indebtedness and the sustainability of the business model.
Open Finance, fintech trends
Further consolidation of the model of collaboration between incumbents and startups, a trend that spread with the birth of the sector but which in 2022 will see a concrete grounding of an increasing number of projects. According to research by McKinsey, there is still a fairly stark gap between American and European startups that manage to become a Unicorn (i.e. to reach the billion dollar valuation milestone in the short term): 50% versus 14%. In this context, the collaboration model is functional in order to catalyze investments to support startups and help them overcome initial difficulties.
The fintech strands that will have the greatest development in 2022 will be the Revenue Based Financing (RBF) is Asset Tokenization. The RBF model provides for the sharing with investors of a percentage of the revenues made by the company that is financed. Both the request for financing and the capital employed by investors are made available via the platform.
The latest trend is the tokenization of activity that uses technologies to make products and objects digitally available that, to date, are only physical. The world of finance is moving in this direction and new opportunities are emerging. Tokenization will be used as an alternative method to financing through, for example, bank debt, very widespread in Italy especially among SMEs. Companies will log on platforms digital which generate tokens as parts of their capital and which can be purchased by investors, automatically and directly or with the support of intermediaries. The sector offers interesting numbers, just think that the only market for Non Fungible Token (NFT) totaled $ 10.7 billion in third quarter 2021 sales globally.