The Fintech space has been steadily growing across the board over the past few years, while these trends for 2023 are set to continue as there are still many uncharted waters to explore.
As competition increases, fintechs must find their own place in the digital world, which means differentiating themselves through unique, user-centric value propositions.
With changes in the financial landscape coming at an incredibly rapid pace, new banks and the payments space will most likely be faced with new concepts in the near future.
As fintech transcends the role of just being a financial institution, financial inclusion will also continue to be a hot topic for 2023.
Here are the trends you might have missed.
Digital-only banks: can brick-free clicks work?
Digital-only banking is making waves as new virtual banking services emerge.
Whether it’s zero-fee contactless payments, peer-to-peer transfers, or diversification options like crypto, the fact is that many of these services have had an impact on the banking industry.
While the rate of physical visits to banks appears to be declining, we can see that at the other end of the spectrum, digital-only banks are flourishing.
Digital-only banking is all about speed and cost efficiency, but it also has incredible benefits on at least two levels: big data analytics and tribe-based banking.
Tribal banking as a new acquisition model
Digital tribes, simply put, are online communities that share at least one common interest.
Social networks like Reddit have made it clear that communities will come together around even the most specialized topics, so is it a stretch to extrapolate that the same will happen with financial services?
When traditional banking services do not meet the needs of a certain group of individuals, the added flexibility of digital banks can certainly shift operations towards people’s interests and provide them with more suitable products.
In turn, new acquisition models seem to be looming on the horizon, as solutions can be crafted with a strong focus, for example, on available merchant transaction data, which means their real possibilities will be taken into account.
However, as convenient as these new models seem to be, it should not be discounted that disenchantment with traditional banking has led to another trend that fintech companies may pick up in 2023.
Autonomous finance applications, crypto and the essential blockchain
Fintech applications embody in essence the spirit of autonomous finance while Blockchain would also improve the transparency of transactions by being a better conductor of clear and traceable data.
Flexibility and simplification of processes are the key to providing individual investors with efficient and trustworthy services.
The possibilities are endless as personalized financial plans can be made based on users’ data while AI can efficiently manage their funds.
Combine that with crypto and who knows what might happen? Since cryptocurrencies seem destined to become a mainstream form of payment, it’s only a matter of time before these new tech avenues collide.
This leads to a major element that is likely to make waves in the future.
Biometrics
As users become more dispersed among the many possibilities offered by the financial landscape, it will become essential that effective security solutions can consistently protect them against cybercrime.
The financial industry never takes the security of its users lightly.
And as blockchain inherently makes transactional data traceable, biometrics seems to be the winning horse of the race as user identification is inseparable from digital financial services themselves.
In fact, biometrics will not only be used for security purposes, as payments and customer services can also be accessed via voice commands, which means a whole new world of possibilities will open up.
RegTech
If you’re not familiar with the acronym ESG, you’ll probably find out in 2023.
It stands for Environmental, Social and Governance, and will be central to many regulations in the future.
As regulatory compliance is a necessity, new and existing digital products will need to adjust their approach.
Ultimately, ESG transition captures the essence of changes within the financial industry: people, processes and products.
Conclusion – Fintech trends to review
The future of fintech certainly looks bright. Collecting user data and trends and converting them into actionable products is essential.
Those who orient their models towards a user-centric view seem to be in a prime position to take the lead in this highly competitive industry.
The Fintech space has been steadily growing across the board over the past few years, while these trends for 2023 are set to continue as there are still many uncharted waters to explore.
As competition increases, fintechs must find their own place in the digital world, which means differentiating themselves through unique, user-centric value propositions.
With changes in the financial landscape coming at an incredibly rapid pace, new banks and the payments space will most likely be faced with new concepts in the near future.
As fintech transcends the role of just being a financial institution, financial inclusion will also continue to be a hot topic for 2023.
Here are the trends you might have missed.
Digital-only banks: can brick-free clicks work?
Digital-only banking is making waves as new virtual banking services emerge.
Whether it’s zero-fee contactless payments, peer-to-peer transfers, or diversification options like crypto, the fact is that many of these services have had an impact on the banking industry.
While the rate of physical visits to banks appears to be declining, we can see that at the other end of the spectrum, digital-only banks are flourishing.
Digital-only banking is all about speed and cost efficiency, but it also has incredible benefits on at least two levels: big data analytics and tribe-based banking.
Tribal banking as a new acquisition model
Digital tribes, simply put, are online communities that share at least one common interest.
Social networks like Reddit have made it clear that communities will come together around even the most specialized topics, so is it a stretch to extrapolate that the same will happen with financial services?
When traditional banking services do not meet the needs of a certain group of individuals, the added flexibility of digital banks can certainly shift operations towards people’s interests and provide them with more suitable products.
In turn, new acquisition models seem to be looming on the horizon, as solutions can be crafted with a strong focus, for example, on available merchant transaction data, which means their real possibilities will be taken into account.
However, as convenient as these new models seem to be, it should not be discounted that disenchantment with traditional banking has led to another trend that fintech companies may pick up in 2023.
Autonomous finance applications, crypto and the essential blockchain
Fintech applications embody in essence the spirit of autonomous finance while Blockchain would also improve the transparency of transactions by being a better conductor of clear and traceable data.
Flexibility and simplification of processes are the key to providing individual investors with efficient and trustworthy services.
The possibilities are endless as personalized financial plans can be made based on users’ data while AI can efficiently manage their funds.
Combine that with crypto and who knows what might happen? Since cryptocurrencies seem destined to become a mainstream form of payment, it’s only a matter of time before these new tech avenues collide.
This leads to a major element that is likely to make waves in the future.
Biometrics
As users become more dispersed among the many possibilities offered by the financial landscape, it will become essential that effective security solutions can consistently protect them against cybercrime.
The financial industry never takes the security of its users lightly.
And as blockchain inherently makes transactional data traceable, biometrics seems to be the winning horse of the race as user identification is inseparable from digital financial services themselves.
In fact, biometrics will not only be used for security purposes, as payments and customer services can also be accessed via voice commands, which means a whole new world of possibilities will open up.
RegTech
If you’re not familiar with the acronym ESG, you’ll probably find out in 2023.
It stands for Environmental, Social and Governance, and will be central to many regulations in the future.
As regulatory compliance is a necessity, new and existing digital products will need to adjust their approach.
Ultimately, ESG transition captures the essence of changes within the financial industry: people, processes and products.
Conclusion – Fintech trends to review
The future of fintech certainly looks bright. Collecting user data and trends and converting them into actionable products is essential.
Those who orient their models towards a user-centric view seem to be in a prime position to take the lead in this highly competitive industry.
