3 Hottest FinTech Trends to Keep an Eye On

The last couple of years have been challenging for consumers and businesses in various fields. From the COVID-19 pandemic’s sudden crypto market crash to the war in Ukraine, businesses have to constantly adapt to market shifts.

The FinTech sector was one that also faced issues during this time. However, companies in the sector were able to develop technologies and tools to better cover users’ needs and stay relevant. In addition, users have become more demanding in their choices, forcing FinTech organisations to evolve constantly.

Alongside rapid growth of interest in this domain and the arrival of new companies, the market now faces high competition. So if you want to stay relevant, attract customers and stand out from the rest, you have to follow trends in the space. Below you will find trends you should consider in 2023 to improve client experiences, reinforce business propositions, and increase revenue.

What is FinTech?

FinTech is the term created from the words “financial” and “technology”. The term describes organisations that use technology that automates and improves financial operations and services. FinTech is a fast-growing industry that benefits both customers and businesses in several ways. From mobile banking apps to crypto and investment apps, FinTech provides numerous applications and solutions.

What to Expect in 2023?

The market changes and shifts are still here and alter the way businesses go about their financial operations. Luckily, SEO for FinTech companies can help you reach the needed trust, popularity and credibility in 2023.

With 2023 just around the corner, the FinTech domain is ready to offer new trends that companies should consider. Let’s explore the top five trends FinTech businesses should expect in 2023.

RegTech Apps Will Increase

RegTech has gained popularity recently as a cornerstone of the FinTech landscape. But what does it mean, and why should you consider it in 2023? RegTech, the abbreviation for regulatory technology, is a subgroup of FinTech that uses technology to oversee regulatory procedures. RegTech companies usually address issues through tracking, reporting, and compliance.

Even though RegTech appeared in 2008, the industry was slowly growing during all these years and experienced a huge boost only in 2022. Now the industry seems to continue to grow, and the market is anticipated to reach $44 billion by 2030. In 2021, the market revenue was only $8.2 billion.

That is probably because RedTech needed FinTech market growth and acceptance to start developing at the right speed. Even though it’s great that more services are becoming digital, risks are also growing. That is because this unregulated digital financial ecosystem is a haven for hacking, data breaches, and other possible threats.

DeFi and Blockchain Get More Adoption

Last year was a nightmare for crypto holders since the market has lost almost $2 trillion since its peak last year. However, seasoned traders know that the general state of the economy appears to be the key factor in this downward trend. And since the underlying blockchain technology continues to grow and develop, the market will soon get back to normal.

Blockchain and Decentralised Finances (DeFi) are growing in popularity. Blockchain, as a decentralised, secure and efficient ledger, is now used not only for the crypto world. For example, healthcare companies have already applied blockchain to safely store patients’ data. Banking is another industry benefiting from blockchain ledger.

One of the key issues that DeFi addresses is it makes peer-to-peer transactions that are immediate and free. For instance, a 2022 survey released by the Stellar Development Foundation (SDF) and Wirex has shown that the value of crypto for international payments is becoming widely recognised. In addition, a partnership between Google and well-known cryptocurrency company Coinbase will allow more companies to begin to accept cryptocurrency payments. Thus, both blockchain and DeFi are believed to be significant components of the FinTech industry in 2023.

Artificial Intelligence Will Eventually Replace Humans

The use of Artificial Intelligence (AI) in FinTech will grow by 25% during the next five years. The use of AI is growing rapidly and reaching various spheres. But the FinTech sector benefits the most from this technology. Below you will see two key ways AI can benefit FinTech in 2023:

AI Decision-Making

FinTech companies know how many vital decisions they have to make daily. Banks, in general, have always been the industry driven by decisions backed by data. So collecting, analysing, and using this data requires a lot of time and resources.

Since data is becoming more complex, businesses now struggle with accomplishing all these tasks while maintaining their competitiveness and lowering operating expenses. That is where AI decision-making helps Fintech companies reduce the need for labour and reduce the costs needed for this task.

AI software is well-known for accumulating data, analysing it based on many factors and delivering insights companies need. That is why AI can become a helpful tool for FinTech organisations wanting to cover user needs in the most efficient way.

Conversational AI

AI will not only be used by banks to make split-second choices; chatbots are quickly turning into useful resources for customer service departments. Banks and financial organisations deal with numerous frequently asked questions. It is a common practice for customers to wait in line. But chatbots powered by AI can reduce the waiting time for customers and the need for humans to speak with customers.

Final Thoughts

The FinTech industry is evolving, and we will see lots of trends in 2023. Blockchain, DeFi and AI are key ones that should be considered by organisations. However, if you want to stay relevant and get a competitive advantage in 2023, you should always invest in marketing since the competition is high.