The Future of Fintech: 5 Current Trends and What They Mean for Brands

Inflation. Supply chain issues. A recession. It’s been a tough year financially for consumers. At the same time, we’re seeing several emerging finance and fintech trends, like the rise of digital currencies, the collateralization of NFTs, and Environmental, Social, and Governance (ESG) initiatives.  

Recently, Suzy teamed up with Exploding Topics to uncover five current finance and fintech trends in 2022 and what they mean for brands. We’ll dig into each trend, uncover consumer attitudes and behaviors, and leave you with some takeaways.

CBDC, Cryptocurrencies, and NFTs

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Central Bank Digital Currency (CBDC)

Digital currencies (money, or money-like assets that are managed, stored, and exchanged on digital systems) are growing in popularity among consumers. 39% of consumers are familiar with cryptocurrency; 27% are familiar with virtual currencies, like Microsoft Points or frequent flyer miles; and 10% are familiar with central bank digital currency (CBDC). But over half (51%) of consumers are not familiar with digital currencies.

Thanks to the pandemic, people now spend their money differently. 71% of people in the US use cash infrequently, including 25% who now use cash less often due to the pandemic. As a result, more than 80% of central banks and countries worldwide are considering the implementation of a CBDC, including Sweden, the European Central bank, and the US Federal Reserve. China is already on the CBDC map.

Nearly a third (30%) of consumers are interested in using digital currencies. However, most consumers (58%) prefer to use physical currency, like cash, debit, or credit cards. Nearly 20%, though, prefer digital currency, with many citing “ease of use”. When it comes to CBDC, the connection to the government also offers some peace of mind.

Crypto Insurance

It’s been a tumultuous year for cryptocurrency holders. On top of plummeting values, cryptocurrency is an increasingly tempting target for hackers and scammers. Just last year, the amount of money lost due to hacks in decentralized finance (DeFi) projects doubled to $1.3 billion. That number is already surpassed this year.

But first, let’s dig into some crypto basics.

75% of consumers don’t currently own cryptocurrency. Of those that do, 20% own Bitcoin, 10% own Ethereum, and others own Tether (6%), BNB (6%), and USDCoin (6%).

Nearly a third (32%) of consumers are interested in owning or using cryptocurrency. There are a solid amount of detractors though. Nearly 40% said they were not at all interested in owning or using crypto.

5% of consumers say paying with cryptocurrency is their preferred method of payment.

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