The fintech sector is rapidly evolving as it seeks to make things faster, easier and more streamlined for both businesses and consumers. As we edge closer towards 2023, fintech experts make their predictions for the 8 biggest upcoming fintech trends:
- Virtual cards – the growth in popularity of virtual cards will continue to surge, especially as users become more familiar with them and the enhanced security they provide.
- Embedded finance – embedded finance is also expected to grow in 2023 as clients seek to embed financial services into their own products or build completely new financial services from scratch.
- Buy-now-pay-later (BNPL) – BNPL options are expected to further expand. At the same time, BNPL will also likely become more regulated as governments works to force lenders to carry out affordability checks and not mislead consumers.
- Cryptocurrency payments – cryptocurrencies are likely to become an everyday way to way in the near future as a number of financial institutions start to accept them as a form of payment. Additionally, Mastercard, Google and others are developing solutions that allow consumers to more easily access and facilitate transactions using cryptocurrencies.
- Contactless wearables – the internet of things (IoT) is making paying for goods and services faster and easier than ever before. Alongside smartphones, bracelets and smartwatches are now being used to make payments. This trend is likely to grow with increased access to smart wearable objects.
- Regtech – the rise of digital products means there is an increased risk of data breaches, cyber hacks and money laundering. This is where Regtech comes in as the industry looks to solve challenges arising from a technology-driven automated economy.
- Artificial intelligence (AI) – AI will continue to drive infrastructure decisions in the fintech sector. More specifically, chatbots will become more sophisticated and could soon be the future of fintech customer service.
- Tribe-based banking – in 2023 (and beyond), businesses will begin to engage more with online ‘tribes’ as a way of forming deeper connections with consumers. More businesses will also launch their own financial services centered around the online tribes they are connected with.