Friday, July 19, 2024

Top 10 Fintech Trends for 2023 You Must Know

No sector has remained untouched with the digital revolution, not even the finance company. With the emergence of technology, the finance sector has never been the same. An amalgamation with technology, finance sector is now center of attraction for users, who are trundled to technology.  

It is estimated that by 2023 the FinTech Software solution business is estimated to reach almost $174 billion (source: Forbes). Hence, several fintech development companies are striving to deliver solutions that are trending currently. From DeFi to embedded banking, all these trends are now collaborating to reshape the fintech industry this year. 

Are you keeping up with these trends? Even if not, now you will. In this write-up you will be induced to top 10 fintech trends of 2023. 

Top 10 Fintech Trends that Will be Prevalent in the Year 2023 

Artificial Intelligence and Machine Learning 

Artificial intelligence needs no introduction of what it is and how it is leveraging businesses. This is one of the reasons that according to the statistics of the World Bank 1.2 billion people are able to access finance services. AI has efficiency to perceive environment and take an action that push the maximum chances of success.  

While talking about Machine Learning, as the name suggests it learns from human behavior and data by identifying the pattern. By leveraging both the technologies together fintech business can automate processes and detect fraud while assisting you with much better and more accurate insights into customer behavior. 

Embedded Finance 

Embedded finance is one exciting development in the FinTech industry. With technological advancement like embedded finance, fintech companies are able to enhance their user-experience. It has enables the users to get relief from paperwork and access credit services using the same platform. 

It also saves your user’s time by helping them to register their payment details for once during their first purchase. The information gets automatically saved with user’s pretermission and the purchases are smooth with pre-registered payment details.  

According to financial experts, embedded finance will not be just a passing trend but will the market of $3 billion by 2030. With such a prediction we can understand how beneficial it will be for fintech biz in the near future.  

DeFi (Decentralized Finance) 

Defi or decentralized finances is one of the most talked about trends in the fintech market. DeFi is all about accepting the upcoming modernization of inducing to the novel investment patterns of blockchain products, cryptocurrency, decentralized finance and foreign currency investments.   

Talking about just passed year 2022 the DeFi market was estimated about $ 13.61 billion in 2022 (source Mininventory) and as the year 2023 has just started, the market has already touched the numeric of $158 million (Business Research Company) and is expected to grow at the CAGR of 46.0%. 

This numerical displays the potential of the market wide and clear. But how is it beneficial for your users? So, the answer to that is, it helps in peer-to-peer quick, easy, safe and free transactions. Users will be able to have access to financial products and services without depending upon those legacy and traditional finance institutions. 

Neonbanking 

These are the banks that are the absolute definition of futuristic banking services. Simplifying the concept further, these are virtual banks that have zero physical existence. They are becoming insanely famous for all good reasons like minimal investment, and zero error scope.  

It allows users to save their time by not wasting it in traveling to bank to accees the services, also it enables the users to access the bank anytime anywhere. The success of this trend can be measured as 36% reduction of physical branches.  

Talking about stats, it is predicted that in the year 2025, neonbanks will reach 39.1 million by the end of 2025 and that is around 20 million more than the stats count of year 2021 (source Statista). 

Here are some promises of neonbansks 

  • Top Quality Automation 
  • Service 24/7 
  • Internation Payments 
  • Peer-to-peer Transfer 
  • Free cards with low transaction fee 
  • Quick Responsive 
  • Buy & Exchange Cryptocurrency 
  • Cost Management 
  • Real-time Analytics 

In short, we can say it is completely a Gen Z banking services keeping all those users who are traditional in mind. 

Open Banking 

Open banking is a financial technology that allows users better control and freedom over their finances by enabling them to safely exchange their financial information with third parties. 

Customers benefit from its convenience, while companies can use it to expand into new markets, develop cutting-edge goods and services, and boost productivity through data interchange. 

For banks, payment providers, and other fintech companies want to make use of the potential of consumer data, open banking opens a wide range of opportunities regarding this. Customers that use open banking have more control over where their financial data is stored and can smoothly move it between various businesses or give third-party providers access to it as needed. 

IoT 

It makes your banking function much secure, effective and convenient. It allows your physical devices connected with the internet and collects the data to analyze and act without any human intervention.  

To enclose the security measures, banks can use sensors embedded on the products to monitor user activity and save time by automating responses based on their behavior or preset preferences. It will secure the bank operations from fraud.  

Apart from this walking with technology, you can also make room for voice recognition. It will almost nullify the chances of hacking, will make login more simplified and will strengthen the authentication process. 

Buy Now Pay Later 

Can you recall where you saw this phrase written the last time? May be some popular ecommerce website. We are so sure that it is recrafting the phase of fintech industry. Buy Now Pay Later has strengthened the fintech industry has it empowered the users to own their requirements and pay in small and easy chunks.  

The popularity of the BNPL is luring so much attention that by 2023 end, this trend and the big names of fintech industries are about to collaborate. Even the top fintech software development company are being flooded with the demands of fintech developers who are apt for such crucial fintech software development for their business.  

With this fintech software solution, easy monthly installment with sometimes zero interets and sometimes with a low interest rate are making ends meet. With this trend the user is able to have good control over financial decisions. 

Password less Authentication 

Turing back a few pages of past years, malicious activities like hacking and phishing were the scareiest threats for both the financial institutions as well as the users. So which FinTech Software Solution has changed the scenario? 

Ransome attacks, phishing and hacking were seen to be increased in the first quarters of 2021 by 25% and everyone was insecure. Then to tackle the issues fintech developers came up with the solution of password less authentication. This is a wide field to explore as it inculcates voice partner security, biometric and OTP.  

Instead of traditional username and password punching, password less doesn’t display anything. It sends you an authentication code that is for One Time Password and can be used in a limited time period for once. Another password less authentication deals with your fingerprints. This is also known as biometrics. This concept is as old as 2015. 

The last but not the least authentication is voice command. Voice authentication is still in process of adaptation but is now common in most of the places. 

These passwords less authentication makes your banking functionalities and user experience both safe and secure. 

Robo Adviser 

Financial matters are real sensitive aspects, as they involve hard-earned money. Even in regular life we consider several advices before putting a step forward with slightest of decisions. And when it is about financial investments, advice matters a lot.  

Imagine if you get well evaluated advice for your investment by analyzing market data? Yes, you can keep on smiling further because it is not just a trend to imagine but an on-going trend. It is known as Robo Advisor. With the help of AI and Machine Learning, you can get well analyzed advice for your financial decision.  

The evaluation of robo advisor market in year 2022 was around $5.22 billion and it is expected to reach around $41.83 billion by the year 2023 at the compound annual growth rate of 29.7%.  

  • Benefits of Robo Advisor 
  • On-Point Financial Data Analytics 
  • Decision Making with Latest Trend within no time 
  • Get the perfect financial investment advice 

BAAS (Banking as A Service) 

Though this term might amaze you, it is one of the freshest ideas to be a banker by not being a banker. Flabbergasted? Wait, we will explain it to you in a much simpler way. Banking as a service is a trend that deal with white label banking. 

With the help of integrating digital banking, you can provide financial and bank services with commodities without being a full-fledged bank. It is cost-effective and safest mode of providing the best user-experience with open banking approaches.  

It is also advices that banks and financial institutions should adopt these modular and service-oriented architectures to craft unique digital services. 

This trend is definitely accelerating the growth of the financial sector. 

How can you match these trends of the Fintech Industry? 

It’s very easy! You can Hire fintech developer from the top financial software development companies like Zenesys. It has been in the industry standing rock stand for 12+ years with top certified and experienced fintech developers.  

With their innovative problem-solving approach, they are able to bring smiles to 200+ clients. The developers of such companies are decked with next-gen technologies and are updated with the latest trends ao that they can assist you with the best. 

Following the latest trend is essential because it helps you to be a step ahead of your competitors. You can efficiently be able to provide the best user-experience by solving their issues with a futuristic approach. And to achieve all these objectives Zenesys will help you always. From Fintech Mobile App Development to custom software development Zenesys has all in the bag.  

Conclusion 

The Fintech industry is growing like the fire of dry forest. These trends are just fuel that adds more fire to it. The year 2023 is marked as the peak of growth of Fintech industry and the growth is expected to continue even in the future. Change is the law of nature. Some trends will be present in future and some might change too. 

Top financial software development companies will help you to keep up with these trends and escalate your growth from time to time. Hence it is essential to match the beat with the changing trends and equally essential to have experts by your side.  

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