Top 5 Fintech Trends for 2023

Published on : 05-08-2023

A lot of the time moving money around the world is expensive. Apps that automate international financial transactions can make it cheaper and quicker for everyone involved. Embedded finance is becoming increasingly popular. Search volume for ‘buy now pay later’ ecommerce sites is up 633% in 5 years. This form of embedded fintech is also seen in online mortgage platforms like Molo and Lendage.

Open banking allows third-party developers to access consumer financial data in an intelligent and secure manner, through application programming interfaces (APIs). This encourages innovation in the finance industry and translates into more digital money management tools for consumers.

Consumers are interested in personalized digital tools that help them track spending, stick to budgets and achieve their financial goals. This is where open banking comes in, making it easier for fintechs to connect with banks and transfer data that can be used to create these services.

This also enables quicker lending decisions, as APIs facilitate the movement of financial information between banks and credit providers in a more seamless way. However, there has been a lack of customer credibility towards this trend due to concerns over the security of their data.

Digant Patel described that fintech apps that use IoT enable users to reset pins at home, snap-a-pic bill payment, and access convenient expense management and quick balance review features. This helps to improve user experience and increase engagement.

Digital-only banks like Monzo, Revolut, and Starling are also providing efficient and affordable alternatives to traditional institutions during the COVID-19 pandemic. In doing so, they help to expand financial inclusion for people who lack access to banking services. They also give customers more confidence to apply for small credit, especially with expected regulatory clarity in 2023.

There are more than 360 million buy now, pay later (BNPL) users globally and the number is set to grow exponentially. BNPL services, such as Affirm and Klarna, allow consumers to split a purchase into installment payments without the need for a credit card or loan application.

Most BNPL providers offer a quick and seamless checkout experience, require only a soft credit check, and have easy-to-understand repayment plans and terms. This makes them ideal for e-commerce merchants. In addition, many BNPL providers offer a variety of payment methods, including PayPal. This gives merchants the flexibility to offer the right financing solution for each type of buyer.