Top Fintech Trends in 2022
In the last few years, technology has had a huge impact on financial services. Businesses are forced to give up traditional economic practices and adopt agile, innovative approaches to stay ahead of the competition. The year 2020-21 and onward will see transformative changes in how technology affects Banking businesses. Technology-led innovation in products and services will begin as businesses take advantage of FinTech (Financial Technologies) trends in 2023 to create new business models.
Over the next few years, many important developments will take place in the fintech space. In this article, today we will look at the trends of 2023 in this blog, which are expected to change the economic landscape and have a far-reaching impact on all industries in the coming year.
What is Fintech or Finance Technologies?
Fintech or finance technology is a term used to refer to innovations in the financial and technology crossover space, and specifically refers to companies or services that use technology to provide financial services to customers. With the help of modern internet concepts, tools and technologies like Artificial Intelligence, Machine Learning, Big Data, Data Science, Deep Learning, Blockchain and more, FinTech trends are changing the way it has been working till now.
Fintech Trends to Watch for in 2023
The most important financial services technology trends in 2023 will help banking businesses as follow:
- Open Banking: Open banking is an important revolutionary technology that brings banks and fintech together by managing data networking in financial institutions. It is related to PSD2 (Second Payment Service Directive) which forces banks to release data in standard format to facilitate digital sharing of information between organizations. Supported with AI technology and various third-party APIs, it regulates consumer banking based on financial information. With the help of open banking partnership, customers will be able to manage their finances by taking advantage of the integrated view of their accounts in one place. Open banking products will promote better financial decisions, long-term wealth creation and debt reduction.
- Blockchain Technology: Blockchain technology has revolutionized the way the fintech industry works. This state-of-the-art technology makes transactions completely safe and secure. Banking and financial institutions are adopting this technology to take advantage of business. In blockchain technology, once data is recorded, it is extremely difficult to modify it. Its cross-border payment system makes payment credentials and information extremely secure. Its decentralized payment system has led many P2P financial platforms to conduct financial transactions and thus increase their investment.
- Voice Technology: Voice technology is the future. Most of us already have virtual assistants in our homes and workplaces in the form of smartphones, speakers, smart gadgets and much more. In 2019-20 alone, the number of digital assistants worldwide was close to 3.25bn. More than 72% of people in the US use voice search to find specific information. Voice technology can also be used for ads and campaigns targeting specific keywords. Voice technology can be used by FinTech apps to get credit balance, due dates, request statements, start service requests, check market conditions for investments, obtain insurance policies and plans and much more.
- Artificial Intelligence: Artificial Intelligence â€‹â€‹in FinTech is used for many purposes: lending decisions, customer support, fraud detection, credit risk assessment, insurance, asset management and more. Artificial Intelligence at FinTech promotes innovation, providing personalized, fast and secure services with high customer satisfaction and global reach. So the artificial intelligence in the financial markets has to stay here.
- Cyber Security: The digital age has its own challenges. Financial businesses deal with customers' personal and financial data, which is sensitive. Unfortunately, data is the most insecure asset in a connected ecosystem. FinTech will change in the coming months with some highly sensitive information and details like credit balance, money, value for money and data, cyber security.
- Digital Banking: Digital Banking is a new era of banks that provides financial services to its customers without any bank presence. It offers virtual banking services such as international remittances, cryptocurrency purchases like Bitcoin and Etherium, P2P transfers, no transaction charges, contactless MasterCard and much more. Digital Bank has no license of its own and operates under an approved banking partner for licensed services. Such a banking system has gained immense popularity as it facilitates its customers by removing documents and standing in long queues for work.
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