2022 has been an exciting year for the FinTech industry, full of developments and marked by innovation. As technology improves overtime, so does FinTech. Thus, as time goes on, we can expect new trends to emerge in the industry. What are the most relevant trends of 2023?
1. Embedded Finance
Embedded finance involves the use of financial instruments for non-financial customers or industries. With the advancement of technology, the use of embedded finance is likely to increase and be present in the everyday customer experience. Apps, softwares and the digital world in general is likely to be taken over by embedded finance.
2. Alternative Finance
Alternative finance involves nontraditional parties granting financial services. Instruments being used for alternative finance may include cryptocurrencies, community shares, private placement and other ‘’shadow banking’’ systems. Hence, nonbank providers can use financial technology for their business.
3. Artificial Intelligence
Artificial Intelligence has an impact for the economy and society. With regards to FinTech, AI has gained the power of playing a crucial role in FinTech service automation and in customer experience.
AI has the power to detect fraud, to tax, and to grant loans. According to a recent Deloitte survey, those who had an AI strategy encompassing the whole firm and who expressed a clear vision were nearly 1.7 times more likely to achieve good business results.
4. Buy Now, Pay Later (BNPL)
The buy now, pay later (BNPL) financing system allows consumers to make a purchase and, as the name suggests, pay for it at a later point (usually in instalments). The BNPL system has witnessed widespread attention after the beginning of the COVID pandemic, and its adoption is definitely not expected to stop in 2023.
2022 saw some damage to the public image of cryptocurrencies due to the fallout of one of the main cryptocurrency exchanges, FTX. Nevertheless, the use of cryptocurrencies continues to spread and is not expected to stop. Forbes even provided a list containing the top cryptocurrencies in which to invest in the upcoming year.
Overall, the Fintech industry is expected to further develop and expand in 2023. Are you interested in a new job in this thriving industry? Then check out PCN’s Job Board for the freshest opportunities.