2022 was a game-changer for the financial industry. The quality and diversity of available services improved, leading to predictions of even more innovation and better services in 2023. In this article, we explore the key trends that are set to shape the fintech industry this year, including open banking, neobanking, RegTech, and AI.
Fintech Industry in 2022 – A Recap
The investments in the fintech industry in 2021 significantly increased, leading to a rise in the number of fintech services and better customer solutions.
The fast-growing market of embedded finance, ESG-focused fintech, and increased focus on underdeveloped countries also played a significant role. As a result, the total value of the fintech industry exceeded 131 billion USD by the end of 2022.
Open Banking in 2023
The open banking market was valued at 15 billion USD in 2021 and is expected to reach 64 billion USD by 2024.
Open banking gives customers access to their financial data from multiple sources, giving them more control and enabling banks to offer more tailored services. That makes open banking one of the most important trends in 2023.
Neobanking as a Fintech Trend in 2023
Neobanking is also set to be one of the top trends in 2023 due to its convenience, lower fees, and user-friendly interface.
It offers various services, including digital banking, money transfers, and investments, making it easier for customers to manage their finances from anywhere with an internet connection.
RegTech and AI in 2023
RegTech and AI are two other major trends in 2023, as they improve efficiency, reduce costs, and streamline compliance.
Furthermore, RegTech helps financial institutions stay up-to-date with changing regulations, while AI has a range of applications in finance, including fraud detection, customer segmentation, and algorithmic trading.
Robo-Advisors Remain Crucial to Fintech in 2023
Robo-advisors are another trend that uses algorithms to provide investors with automated advice about asset allocation or portfolio rebalancing, eliminating human intervention.
2023 promises to bring a range of new and exciting trends to the fintech industry. From open banking to neobanking, RegTech, AI, and robo-advisors, the industry is poised for a year of innovation and growth.
These trends will help improve customer experience, streamline processes, and ultimately drive the fintech industry’s growth.