The financial industry has brooked a rapid transfiguration in recent years, thanks to financial modernisation, commonly known as fintech, and this trend is extrapolated to persist in 2023. Fintech has revolutionized how individuals manage their money and has enabled financial institutions to provide an array of innovative products and services. This article highlights some of the key fintech trends to watch out for in 2023, ranging from blockchain to artificial intelligence. These trends are expected to transform the financial industry and alter our perception of money. Whether you are a fintech enthusiast or a financial industry professional, these trends are worth monitoring closely.
Embedded finance space
Though not exponential, the embedded finance market has been growing steadily over the last three years, with the COVID being an apt catalyst. With traditional banks struggling to hold onto consumer trust, it is high time that the real potential of the embedded finance market is realised. Fintech start-ups and traditional banks can come together and contribute to tailor-made services for varied business models with firmer infrastructure. 2023 would see wider adoption of embedded finance because they can increase the customer base and provide services at much lower costs.
Neo banking services
The main reason neo banks grow is their online presence over traditional banks. Unlike conventional banks, which have a physical presence, neo-banks use cloud computing and eliminate the void between conventional services provided by traditional banks and the present digital generation. Currently valued at approximately $40 billion, neo-banking accounts for about 2.2 per cent of the entire banking sector. Data analytics and artificial intelligence form the backing of the neo-banking industry, which is projected to surge rapidly this year.
InsurTech
Another sector pirouetting around insurance is InsurTech which has also witness swingeing growth during the pandemic. Insurance companies have shepherded innovations by milking AI, IoT and artificial neural links. By integrating the data in wearable trackers and geological positioning, the companies are abetting insurers in attaining a much more variegated and broader audience. InsurTech also succored firms by offering them protection against IT theft and malware phishing.
As the fintech industry continues to evolve and disrupt traditional financial services, companies and businesses must remain vigilant and adapt to the changing landscape. By staying up to date with these emerging trends and technologies, companies can position themselves for success in the years ahead. At Ziel Fintech, we work with all sizes of business-small, medium and big to ensure they get funds when they need them the most. To understand how we facilitate easy loan disbursals, lending options and repayment tenures, check our app Z First or visit our website https://www.zielfintech.com/.