4 Best Fintech Predictions for 2023

The financial technology sector had a record high level of investment last year. This year it has continued to boom, but in a different environment.

Nigel Green, CEO and founder of deVere Group, said it was a historic level of investment – around $130 billion in fintech by 2021. However, this year the environment has been more challenging due to slowing economic growth around the world, supply chain issues , red-hot inflation and the subsequent interest rate hikes.

“But fintech continues to reshape and redefine how financial services are delivered across the board, with interest from consumers and potential investors at all-time highs”so Nigel.

Top fintech predictions for 2023

Traditional banks will increasingly enter the fintech area

“They have been in a perpetual game of ‘catch-up’ for the past few years amid changing customer expectations, regulatory requirements and technological advances, and this is only expected to accelerate. Why? Two reasons: first, millennials that they are the fastest growing group of clients; and secondly, because they will be the recipients of the largest transfer of wealth in history.” Nigel says.

Some estimates say that over the next few decades, $68 trillion in wealth will pass from baby boomers to their children and other heirs.

Nigel continues, “Millennials have grown up on technology. They are “digital natives”. They have been influenced by the huge wave in technology as they entered adulthood – which came around the same time as the global financial crash that hit in 2008. Against this backdrop, they apparently became comfortable using fintech to help them access , manage and spend their money instead of using a traditional bank.”

According to a Facebook white paper, 92% of millennials do not trust banks, and many see them as an unreliable source of information. Millennials who use their phones as their primary method of banking expect easy, instant access and control over their finances. They want to be able to transfer money and pay bills with a tap or swipe, and also review their spending habits. Banks are becoming aware of this trend.

There will be greater regulatory control

There will be more regulations for fintech services. This is because the supervisory authorities notice that these services are used in places where there is not much regulation. So the regulators want to put more rules in place so that customers are protected. They will focus on ensuring that companies are accountable and transparent.

Data will become increasingly important

Data will become increasingly important. Businesses must explore new methods of collecting and using data to differentiate themselves from the competition.

Asia will continue to be the center of the fintech revolution

Asia will remain the center of the fintech revolution due to several key factors. These include a proactive approach to innovation by regulators; the abundance of virtual banks; the evolution of the broader technology ecosystem, particularly application programming interfaces (APIs); and the influx of Chinese financial and technology giants into this sector.

“Even as the world teeters on the edge” of a global recession, we expect fintech investment to continue building momentum in 2023 because it improves the customer experience and is increasingly in demand. It also helps businesses increase efficiency, increase productivity, reduce operating costs and improve competitive advantage.” concludes CEO of the deVere Group.

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