As we move forward into 2023 and beyond, the fintech and digital banking industry is expected to see significant growth and development. Some of the key topics that are likely to drive this growth include:
The increasing demand for banking solutions: As more and more individuals rely on digital banking, financial institutions are investing in technology that can better meet their needs. This includes the development of chatbots and AI-driven solutions, as well as access to cloud-based technologies that allow customers to manage their finances from any location. Banks are also working on developing more customized services for their customers.
Development of open banking platforms: These platforms allow customers to access their financial data from a variety of sources in a single, user-friendly platform, giving them more insight and control over their money management. The EU’s PSD2 directive has already begun to promote these platforms in Europe, and other countries are expected to follow suit.
Embedded Finance Improvement: Embedded finance technology will allow consumers to access their financial information and conduct payments and transfers without difficulty. Embedded finance will increase the speed and flexibility of digital transactions for banks, payment providers, insurers, and other businesses. Cross-sector relationships can accelerate the development of new products by fintech companies. Open banking standards will continue to alter the delivery of payments, data, and financial services. Breakthroughs in AI and ML could aid businesses in enhancing their operations with embedded finance. Thus, embedded finance is anticipated to transform our financial interactions by 2023’s end.
Growth in cross-border and contactless payments: With the rise of global businesses, cross-border and contactless payments are becoming increasingly popular. Technology is making these transactions faster, safer, and more secure, and companies are benefitting from faster payment processing and reduced fraud. Contactless payment systems, such as mobile payments, are also growing in popularity, and governments are beginning to regulate multinational corporations and use blockchain technology to expedite international settlements.
Development of non-banking financial technology services: Companies such as PayPal are leading the way in offering non-banking financial technology solutions, such as online payment services, mobile wallets, and cryptocurrency exchanges. These solutions are often more convenient and affordable than traditional banking services, which is driving their popularity.
It’s clear that 2023 will be a significant year for the fintech industry worldwide. With an increasing demand for digital banking solutions and a more favorable regulatory environment, we can expect to see more advanced technologies like blockchain being adopted on a larger scale than ever before. Overall, it’s an exciting time for the fintech market, and we can look forward to what the future holds.