In the past few years, Fintech has enjoyed significant growth and popularity. Businesses, banks, and financial institutions are now highly integrated with technology to enhance their financial operations and streamline financial services delivery to consumers.
Innovations such as faster payment processing, fraud mitigation, saving/investment tools, personal digital assistants, among others, are made possible thanks to FinTech. And the best thing about FinTech is that it’s continuously evolving.
We see new trends today that show promising results that will further make this industry more popular than it is now. Read this list of 2023 Fintech trends below.
Machine Learning and Artificial Intelligence (AI)
The meteoric growth of FinTech can’t be achieved without the emergence of machine learning and artificial intelligence. Since the two invaded the technological sphere, the FinTech industry was one of the first to reap the benefits of these two technologies. Today, the contributions of AI and machine learning are still among the most persistent Fintech trends.
For example, customers can now view their account balances, get investment recommendations, or make payments with the help of chatbots and digital assistants. Every day, these digital assistants and chatbots are learning more complex commands to cater to consumers’ needs. You can also use AI to upgrade the financial literacy of a wide range of people.
Blockchain Technology and Cryptocurrency
Not all people have access to traditional banking services since opening a bank account can be expensive. This problem is the reason why blockchain technology and cryptocurrencies are getting popular.
With the emergence of blockchain technology, you can now save, transfer, and receive digital money without an intermediary, which greatly reduces transaction costs. Blockchain also has a high level of security, and computer experts are working towards making it even more secure.
Today, there are numerous cryptocurrencies that serve as digital money that you can use for various transactions. The two most famous of these cryptocurrencies are Bitcoin and Ethereum. The tech giant Facebook is also expected to release its own cryptocurrency called Libra. With the massive following of Facebook, the Libra cryptocurrency has a high chance to surpass today’s popular cryptocurrencies.
One of the main advantages of Fintech development is access to Big Data. It’s because it enables banks and financial institutions to give consumers personalized and applicable insights. For instance, as a consumer, you can get financial tips and recommendations based on relevant statistics and trends.
Aside from Big Data, FinTech companies also look into transaction histories across various industries. Still, Big Data is king when it comes to providing enriched, useful, and relevant information.
New regulations within the Fintech industry are being rolled out to make it more secure for consumers to do their digital banking transactions. People should always keep in mind that these FinTech companies are still businesses, meaning they want profits.
There should be measures put in place to prevent mismanagement, fraud, and security breach. Setting up regulations on these new financial companies and institutions is also one way to compete with traditional banks.
Flexible Access to Paychecks
Workers and employees can now access their paychecks before their official payday thanks to FinTech companies that allow such options. In this way, you will no longer have to take out payday loans that have high-interest rates. This thing can be beneficial to the financial wellness of workers and also help talent retention in companies.
So, there you go, the most popular Fintech trends in 2023! FinTech is one of the most trailblazing industries today, with its innovations and developments. Of course, these trends are only the beginning, and there will be more progress to come since technologists and experts are continually improving this industry.