The Top 5 Fintech Trends for 2023
Written by: Sheetal Jaitly, CEO and Founder, TribalScale
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As we move into 2023, the fintech industry is poised for even more growth and innovation. Here are some of the top trends to watch out for:
Continued Adoption of Open Banking and API-based Services
Open banking, which involves the use of APIs to enable secure sharing of financial data between institutions and third-party providers, has been on the rise in recent years. This trend is expected to continue in 2023, with more banks and financial institutions offering open banking services and more third-party providers leveraging these APIs to offer new and improved financial services.
Growth of Digital-only Banks and Neobanks
Traditional banks have been facing increasing competition from digital-only banks and neobanks, which offer convenient and user-friendly mobile banking services. These banks are typically able to offer lower fees and higher interest rates than traditional banks, and are gaining popularity among younger consumers. We can expect to see even more growth in this sector in 2023.
Increased Use of Blockchain and Cryptocurrency
While the use of blockchain and cryptocurrency has been somewhat controversial in the past, they are becoming increasingly mainstream. In 2023, we can expect to see more banks and financial institutions exploring the use of blockchain technology for a variety of applications, from enhancing security and reducing fraud to streamlining cross-border payments. The use of cryptocurrency is also likely to continue to grow, with more businesses accepting it as a form of payment and more consumers using it for everyday transactions.
Advances in Artificial Intelligence and Machine Learning
Artificial intelligence and machine learning are already being used in the financial industry for tasks such as fraud detection and risk assessment. In 2023, we can expect to see these technologies being used even more widely, with the potential to revolutionize everything from personal finance management to investment advice. For example, AI-powered personal finance assistants could help consumers make more informed financial decisions, while machine learning algorithms could be used to identify and invest in promising new companies.
Expansion of Financial Services to Underserved Communities
Expansion of financial services to underserved communities, one of the biggest challenges facing the financial industry is the lack of access to financial services in underserved communities. In 2023, we can expect to see more fintech companies focusing on addressing this issue, through the use of mobile banking, digital currencies, and other innovative technologies. This trend is not only good for consumers in these communities, but also has the potential to drive economic growth and development.
Final Thoughts
Overall, the fintech industry is set for exciting times in 2023. With continued adoption of open banking and API-based services, the growth of digital-only banks and neobanks, the increasing use of blockchain and cryptocurrency, advances in AI and machine learning, and the expansion of financial services to underserved communities, there are many opportunities for innovation and growth. As a result, we can expect to see even more exciting developments in the world of fintech in the coming year.
Sheetal is a passionate advocate for Digital Transformation and Global Innovation. He’s led multiple digital transformation initiatives with companies spanning all different industries, including entire re-designs and creations of digital user platforms. Besides being an avid investor and supporter of digital technology companies, Sheetal is a board member of Feed Ontario, a member of Tech4SickKids Council, DMZ, and TechStars Mentor.
TribalScale is a global innovation firm that helps enterprises adapt and thrive in the digital era. We transform teams and processes, build best-in-class digital products, and create disruptive startups. Learn more about us on our website. Connect with us on Twitter, LinkedIn & Facebook!
