5 Top Trends and Predictions Bringing Big Changes to Fintech Investments for 2023
The year 2022 has been a rollercoaster for investors and business owners. With so much happening around the world, from getting life back to normal after the pandemic to almost world war situations, the world economy has been shaken many times. And now the fear of recession has built up in all sectors.
With such important things running all over the world, investing in FinTech (Finance plus technology) requires a lot of consideration. As financial services with technology promises a future-ready system, incorporating tomorrow’s demand into your business to serve better is the key to winning.
Therefore, you should be aware of the trends within FinTech that will rule the market in 2023 and beyond. And to get expert guidance on investing in FinTech, partner with a top FinTech app development company with experience in supporting businesses.
Here are some top trends you need to know to grow your FinTech business in 2023.
AI decision making
AI is rapidly gaining popularity in the FinTech industry and is used to perform many activities, such as making loan approval decisions, negotiating insurance contracts and detecting fraud. With this, delivering financial services to customers and improving financial inclusion is something you should not miss – AI algorithms integration into new financial applications, even through the startup MVP development phase.
However, the ethical implications of AI in such operations-based decisions are now a topic of discussion among the general public. For example, the Apple Card algorithm, which gave men higher credit card limits than women, was the subject of a public outcry a few months ago.
By 2023, there will be more decisions about who has access to various financial services and how to use AI algorithms to create FinTech apps. But by developing solid mechanisms that protect end users, fintech organizations must be able to balance the scale that these algorithms provide with perfect ethics in application.
Contactless transactions
The most important development in payment methods occurred during the COVID-19 epidemic. While it was necessary to maintain social distancing after the pandemic, most transactions involving social distancing guidelines and medical advice moved online. As a result, the leading digital payment methods have changed to contactless credit and debit cards and mobile wallets.
With the introduction of Apple Pay, consumers could buy things with their iPhones and later Apple Watches. Google Pay and Samsung Pay came next. With this, FinTech innovations lead to further changes in fees charged by transit providers, educational institutions, government payments and other areas.
In addition, the industry expects a 92% increase in mobile contactless transactions by 2023, with global transaction volumes exceeding $49 billion. So it is not surprising that contactless payments are becoming more popular because they make using financial services more accessible and more convenient.
Smart contracts
Digital signatures – more specifically, cryptographic keys – are used by parties to sign agreements expressed in a computer language using smart contracts. As a result, the execution of smart contracts is precise and predictable.
Because multiple computing devices will receive the same copy of the initial digital contract, the smart contract makes it impossible to verify the validity of the contract breach. However, the public blockchain guarantees the fulfillment of the letter’s contract. This fintech trend is likely to spread and transcend national borders, making smart contracts available to almost everyone. Therefore, incorporating blockchain technology into your FinTech app will be the best practice for developing an app.
Innovations in payments
Customers are increasingly looking for quick and easy payment methods instead of using cash to buy products and services. As a result, value-added services for payments will be the target of banks and non-banks such as retailers, startups, technology companies and telecommunications.
Super FinTech Applications
An enterprise application that offers everything beyond the standard services is referred to as a “superapp”. For example, today users can mainly access superbank applications. With all the bells and whistles, these innovative platforms offer users a comprehensive financial services experience.
Diffusion of these applications could result in cryptocurrency trading, the ability to manage multiple savings accounts in multiple currencies, and cross-border payment solutions for the fintech industry.
The bottom line
Since it is almost impossible to predict what will come in the future based on current trends, it is possible to analyze the possibilities of success. The ongoing scenario in the financial world says that technology incorporation is a futuristic move. The more accessible services your business offers, the higher customer engagement you can witness.
It will be wise to integrate the top trends in FinTech for 2023. So you need to connect with the leading mobile app development company with past expertise in the field. It will ensure that 2023 will be a good year for your business and you can witness growth.
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