Current FinTech trends that will shape the financial industry in 2023
FinTechPartner Content
The financial industry has always been at the forefront of innovation, developing at an unprecedented speed in recent decades. Fintech, or financial technology, has been a game-changer in the financial industry, introducing cutting-edge technology and providing better service to customers. Today, we’re going to take a closer look at some of the most prominent fintech trends you need to watch for in 2023.
Artificial intelligence, machine learning and fintech
AI and machine learning are among the most important fintech trends changing the financial industry. Both AI and ML are transforming the way financial services companies operate, making banking faster, more efficient and more accurate. These technologies are used to develop chatbots and virtual assistants that can help customers with their questions and provide personalized advice, freeing up consultants’ time. Businesses use language models like ChatGPT, trained by OpenAI, to answer customer questions and provide valuable insights.
Companies must be aware of both the opportunities and challenges of ChatGPT for financial services. While it can definitely be a useful tool to improve customer service (and not only), language models are prone to generating false information, not based on actual data or knowledge, and companies must keep in mind that regulation regarding the use of AI is in rapid change , so don’t let any new changes surprise you.
Low-code platforms for financial services
Another fintech trend gaining traction is a low-code approach to developing fintech platforms. Low-code platforms allow developers and regular users to create applications using a simple visual interface, usually with drag-and-drop components instead of writing code.
This approach can significantly reduce the time and resources required to develop new applications, and it can help financial companies launch new products and services in record time.
Efficient data processing with cloud computing
With massive amounts of data continuing to grow every day, the fintech industry is constantly in need of faster and more efficient processing. Cloud computing allows financial services companies to store and access data and applications online rather than on-site, significantly reducing costs and improving scalability.
In addition, cloud computing can also improve data security by providing robust backup and disaster recovery capabilities.
Take advantage of built-in economics
As 2023 takes off, the fintech industry is looking towards embedded finance as the next big thing. Embedded Finance involves integrating financial services into non-financial applications and platforms – for example, an e-commerce platform can offer a range of financial services, such as loans or insurance. This approach can significantly improve the customer experience and provide an additional revenue stream for financial companies.
With built-in finance, users don’t need to switch between apps to access financial services, so customers can, for example, make the purchase now and access financing services to pay for the product over time. According to research conducted by McKinsey & Company, the market for embedded financing is expected to double in size over the next two to four years.
What does 2023 look like for the financial industry?
Fintech is revolutionizing financial services again – which is only to be expected, given the past few years. AI and machine learning improve efficiency and accuracy in financial services, and low-code platforms reduce development costs and time and make app development more accessible. Cloud computing also improves scalability and data security for financial services companies, making large-scale solutions readily available without investing heavily in infrastructure.
Finally, embedded finance is breaking new ground, creating reliable revenue streams, improving the customer experience and helping finance companies tap into valuable leads at crucial moments. Companies that embrace these trends will definitely be well positioned to succeed in the coming years, and with the help of technologies like ChatGPT, the opportunities for growth are endless.
Keep your eyes open for new amazing technologies as 2023 continues – we may have more surprises yet!
