After the covid-19 pandemic, multiple reforms are catching up in the market to satisfy user needs. Currently, the financial sector is also bringing new improvements to enhance user experience with the use of robust technologies from contactless payments to AI-integrated solutions. Coming 2023 will be a year with several changes in fintech varying from increased use of Blockchain in the finance sector to banks going completely digital. Various businesses are looking forward to jumping in the race by launching new solutions developed by an experienced fintech software development company.
In this Blog, we have come up with a brief understanding of new Fintech trends and statistics that you can look up for the year 2023. Let’s get through all the details-
Know About Current Statistics of the Fintech Market
With the ever-increasing fintech sector, we are currently in an ongoing phase toward a bright future. As you can see in the stats, digital payments will be increased to $9,683 billion in 2023 followed by Neo banking which will increase to $2,445 billion as well as the digital investment will see an increase to $65.02 billion. By having fintech app development services for your business, you can also be in the race and bring some digital-friendly solutions for your users.
Top Fintech Industry Trends In 2023
There are so many advancements & newest trends adopted by the Fintech market and several top finance advisors & experts are really looking forward to implementing them. Here are some latest fintech trends to keep your eye on in 2023.
Increased Use of Artificial Intelligence
The use of Artificial Intelligence is growing tremendously in all sectors, how can the fintech sector stay behind? Businesses are jumping on the bandwagon for fintech application development integrated with Artificial Intelligence, it is expected that the use of AI in the fintech market will grow by 27.6% by 2026.
The finance sector has to collect vast data from the users which takes up a lot of time and effort. As well as, it is hard to maintain such huge data which is why it usually stays in scattered form. To help with gathering, examining, and using the information and unlock the true potential of AI, many new AI- solutions will be seen to take the manual work and increase productivity. It will also help in reducing financial crimes and privacy breaches. With the use of AI, it will be accommodating to keep the data and deliver quick results which is why the use of algorithmic AI decision-making making its way in this data-driven industry.
Embedded Finance
Embedded finance is a fintech trend paving its way and revolutionizing the finance sector. Embedded finance is the incorporation of financial services in non-financial platforms. It consists of making online payments on different platforms, taking loans from your phone without going to the bank, buying insurance, or even investing somewhere such as the capital market. According to a survey by 2026, the embedded finance transactional volume will increase from $2.6 trillion to $7 trillion.
The big benefit of embedded finance is that it is streamlining the procedure of offering and payments by providing tailored fintech industry solutions to businesses. For example, the ‘buy now and pay later’ feature helps customers to reduce the burden of payment. On the other hand, exercise apps are providing a chance for users to renew their health insurance applicable to different terms & conditions which motivates the user to keep up with their exercise & save money.
Rise Of the RegTech Industry
RegTech is among one of the top fintech trends you can look forward to in 2023. RegTech means regulatory technologies used for the administration of regulatory processes through automation. The main function of RegTech is to prevent cybercrimes, and money laundering by managing such issues with compliance, trailing, and reporting. Within the last decade, RegTech has seen an upsurge and will see a staggering growth of CAGR 16.2% by 2032. The use of RegTech is rising as it is making sharing of data safer using cloud technology.
Increased Use of Blockchain in Finance
Just like the transaction of cryptocurrency is growing, the underlying technology blockchain is bringing big changes and getting adopted by businesses hugely. Ventures are bringing new solutions incorporating blockchain with a reliable fintech software development company to reduce the duplication of data and increase trust & safety. For the financial sector, blockchain can complete the entire processing of the trade cycle most safely and securely. For banking, blockchain-integrated solutions will reduce default risk, and reduce the time of disbursement and clearance.
Working with Green Finance
Nowadays, what attracts the majority of users is what the companies give back to society. As a matter of course, green finance can be counted among the best fintech trends for saving environments which is why companies are laying their priority on sustainability. A positive shift can be seen that will increase the market size by a CAGR of 20.1% till 2031. In 2023, you will surely be able to see rapid growth in the adoption of green finance, the dots can be seen as Venture capital has more than $40 billion of investment in deals associated with green finance.
Spark of Open Banking
Open banking is among the top fintech trends that has so much potential to amend the customer experience. Open banking started getting traction in 2015, But there are many developments seen in open banking in recent years. Open Banking allows the third party to access the data and payment through a secure API. You can enjoy multiple apps and their services with the use of open banking. The only way to enjoy the true potential of open banking is through banks’ collaboration with fintech solutions. Apps like Plum and Moneybox let their users organize their investments and savings properly.
Improved Contactless Payments
Contactless payment is a rapidly growing fintech trend you can look out for in 2023. After the covid-19 pandemic, the growth of contactless payments has increased enormously. According to a survey in 2022, 59% of small businesses are planning to shift to contactless payment methods. With that, many businesses are taking the help of a reliable fintech app development company to provide more secure contactless payments to their users in 2023.
Contactless payment is a safe method of buying goods and services through various means such as RFID and NFC as well as Debit cards, Smart cards, or Credit cards. After the first advancement made by Google in 2011, many contactless payment apps such as Samsung Pay, Apple Pay, and many more were introduced over the years. Currently, we can see persistent changes brought in by firms to simplify transactions of users.
Conclusion
From the prior listed trends, you can understand that the coming years will be full of financial disruptions helping people by opening more payment gateways and businesses to boost their profit & revenue. With new inventions and market trends, it will bring new changes that will surely impact the other sectors too. Through continuous internet penetration and further use of Artificial Intelligence, many efficient and effective fintech solutions will be launched which will be helpful to enhance customer experience.
In this altering market, you need to update yourself for the growth of your business. By having fintech software development services, you can incorporate these trends in your solutions to meet the ever-changing requirements of your user base.
Author BIO
Rohan Singh is a Chief Executive Officer at SemiDot Infotech, Top rated multi award winning custom software development company providing a full suite of services and solutions to small, medium, big enterprises, product companies & new-age start-ups.
He has extensive experience working for multinational companies and know what it takes to take a company to the next level. He has a master’s degree in computer science. Rohan finds covering the tech world to be an exciting and engaging experience as each day brings new and ground-breaking technologies to explore and write about.
