Authored by: Mr. Vipin Vindal, CEO, Quarks Technosoft
The fintech industry has been rapidly evolving in recent years, with new trends and developments emerging that are transforming the way we manage our finances. From digital currencies to open banking and beyond, these trends are changing the face of the financial industry and offering consumers new opportunities and benefits.
Neobanking – Companies will offer all kinds of banking solutions where they will leverage several banks underneath, Neobanking will offer Virtual Account Numbers using which transactions can be done, investments can be made and other such financial transactions are enabled. Neobanks may end up being more than simply the newest fad in the fintech world. The actual power of neobanks hasn’t yet been fully realized because of regulatory obstacles. Neobanks may enter the banking industry in the years to come, changing banking as we know it for all time. Neobanks can improve the client experience and simplify complicated banking procedures because they have no legacy baggage and limitless technology capabilities. Neobanks might eventually replace conventional banks and take over as the future of banking as technological advancements continue to upend the planet.
Payments Space – Borderless Transactions will expand via new-age applications reducing the cost of transactions and less paperwork. The future of financial or monetary transactions globally is online payment. In order to meet the preferences of e-commerce customers across strong global markets, 2023 will see the innovation of online payment trends and the fintech industry. This innovation will range from highly secure blockchain technology, biometric authentication, and card tokenization to interest-free installment payments at checkout.
Digital Wallets and Payment Services: With the rise of contactless payments and the growing popularity of mobile banking apps, digital wallets and payment services are becoming increasingly mainstream. In 2023, we can expect to see more traditional financial institutions partnering with fintech firms to offer these services to their customers.
Open Banking: Open banking refers to the practice of sharing financial data between different financial institutions and third-party providers, with the aim of improving customer experience and facilitating innovation. In 2023, we can expect to see more banks and fintech companies adopting open banking practices, which could lead to more personalized financial products and services for consumers.
Blockchain and Cryptocurrencies: Blockchain technology has the potential to revolutionize the financial industry by improving security, transparency, and efficiency. In 2023, we can expect to see more use cases for blockchain in the fintech industry, including the development of decentralized finance (DeFi) platforms and the integration of cryptocurrencies into mainstream financial services.
Artificial Intelligence (AI) and Machine Learning (ML): AI and ML are already being used in the fintech industry for tasks such as fraud detection, credit scoring, and customer service. In 2023, we can expect to see more advanced applications of these technologies, including the use of chatbots and virtual assistants to provide more personalized financial advice and support.
ESG Investing: Environmental, social, and governance (ESG) investing is gaining momentum as more investors look to align their investments with their values. In 2023, we can expect to see more fintech firms developing ESG-focused products and services, such as robo-advisors that offer ESG investment portfolios and tools that help consumers track the sustainability of their investments.