Although the sentiment has become trite, the past few years have been truly unprecedented in more ways than one. COVID-19 forced individuals, communities, businesses and industries to reconsider their priorities—and it’s led to innovation across the globe.

The fintech sector, in particular, has seen rapid expansion, and the progress toward a more open, human and connected finance industry shows no signs of stopping.

Here are the trends that Galileo’s leaders believe will accelerate into 2022 and beyond:

1. More Embedded Finance Solutions

Accelerated adoption of embedded finance across industries

The rise of embedded finance has really been about convenience and trust. Consumers want a seamless experience enabled by the technology they are most comfortable with and that they already trust with their data. The opportunity to capitalize on consumers’ desire to engage with their finances directly through a streaming provider, retail shopping app or enterprise software solution is there for brands who want it.The market opportunity in this area is considerable; it’s expected to surpass $7 trillion by 2030. This growth will be powered by below-the-glass technology that delivers above-the-glass experiences. More and more brands will add embedded finance tools—like point-of-sale loans, insurance or rewards products—into their tech stacks so they can help create greater customer impact.

2. Deeper Integrations

As the banking sector becomes more open, information that was once disparate will become integrated. For example, when a customer buys a car currently on credit, the assessment is largely on their ability to repay the loan amount. As data is freed to be used more widely, that same transaction could start offering better user experiences that take the customer's typical day-to-day usage, history, vehicle choice and driving style into account. This approach can help providers offer integrated purchase, funding, insurance and rewards programs to customers as we move through 2022.

3. More Collaboration Across the Industry

Historically, relationships between fintechs and traditional institutions were often tenuous and collaborations were forced. Fintechs’ services were too costly or complicated for the banks to build, so those institutions brought in third parties out of necessity. Now, the partnerships between banks and fintechs are far more calculated and mutually beneficial. Both types of institutions have a much broader understanding of the ways they can work together to provide the best experiences for customers.Banks and fintechs see each other as partners who are specialists in what they do, and that dynamic will continue to evolve and integrations will accelerate.

4. Expanded Always-On Payments Capabilities

The pandemic has accelerated consumer expectations when it comes to digital, always-on payment systems. For a time, this expectation was limited to individual payments, but now we see a similar shift occurring in business banking and business-to-business (B2B) payments.Consumer innovation has changed expectations when it comes to how businesses make, pay and move money. Small and midsize businesses are particularly keen to reduce costs and hasten payment cycles through digital channels. From this year onward, we expect to see incredible innovation in the way businesses take control of their banking and payment processes.

5. Blockchain Momentum Keeps Building

It’s hard to believe that bitcoin is 13 years old, but cryptocurrency and the blockchain that underpins it continues to make headlines and companies are still figuring out where it fits within their businesses. We expect that the wider integration of blockchain into the financial system will accelerate both in terms of the more widely available cryptocurrency payment tools (at retailers, within banks, across the payments sector), trading tools, central-bank-backed digital currencies, NFTs powered by cryptocurrency as recognized assets, and more broadly as the use of both public and private blockchain ledgers as a means to negotiate contracts and exchange value.

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6. More Customer-Centered Experiences

As fintechs, banks and anyone else providing financial services look to innovate in this environment, they must prioritize listening to and acting on their customer feedback to compete. COVID-19 has ushered in an era of unparalleled convenience and personalization, and there is no turning back. Embedded finance, open ecosystems and greater collaboration will each play an important role in the creation of tailored, user-friendly financial services that put customer preferences and financial wellness front and center.No matter how customers engage with their finances, human-centered design must be the priority.

For more Galileo predictions in the media, see Forbes, Tearsheet, FinTech Magazine and The Fintech Times.