4 Conversations Banks Must Have in 2022


In many ways, my predictions of what to expect in fintech in 2021 still stand in 2022. Indeed, the trends I anticipated– embedded banking, open banking, automation, and banking-as-a-service– are still hot-button issues that banks and fintechs need to address.

Last year we were recovering from the deluge of the digital transformation agenda and it was difficult to see what was beyond pandemic-related trends. This year, however, there has been an obvious shift. The conversation around decentralized finance is transitioning from a quiet murmur to a louder and more pervasive discussion.

What are some important topics banks need to address in 2022? Below are four conversations banks and fintechs must have next year:

Digital identity

Now that the pandemic has driven so many services to the digital channel, the topic of digital identity must be addressed. This issue ties directly into the security of not only money movement, but also the security of users’ data. Without an efficient way to authenticate users, banks and fintechs expose both themselves and their customers to risk.

Decentralized finance

Decentralized finance (DeFi) is taking off across the globe. According to DeFi Pulse, there is currently $96 billion locked in DeFi, up from $25 billion a year ago. If banks want to be part of the conversation, it is no longer a topic they can ignore. While some experts believe that DeFi will eventually kill off banks, others see banks as an integral part of the future of DeFi.


Central bank digital currencies (CBDCs) is a topic that dovetails from DeFi, but is even more relevant for banks. That’s because CBDCs will be government-issued, and because the government doesn’t have the infrastructure to distribute and manage digital currencies, traditional banks will be key in the issuance of CBDCs. If you haven’t already, it’s time to think about the role your bank can play in this space.

Open finance

The U.S. is overdue for regulation on open banking. In fact, we are so late to the game that the topic has already evolved from open banking to open finance. Though there have been murmurs of open banking discussions in the U.S., nothing formal has taken hold. Consumers are ready, however. Not only have their online presences expanded, they are also becoming increasingly aware of their own data privacy and data usage.

Photo by Clay Banks on Unsplash