Customers searching for on-demand financing make it clear that they prefer handling their money online and are gradually migrating away from the web of traditional financial services.
Radical developments sometimes disrupt the market as the FinTech industry evolves quicker than ever. Due to their impact on everything relating to payments, money, and banking, FinTech CXOs and investors need to keep a watch on these technological advancements.
Open Banking
With the help of secure APIs, banks will contribute to the open banking effort, sharing customer data with Fintech companies and other financial institutions. According to a Statista report, “Open banking users worldwide in 2020 with forecasts to 2024, by region,” 63.8 million individuals will utilize open banking by 2024. This shows why banks would provide other institutions access to their private financial information.
Banks will able to maintain their competitiveness and offer security, transparency, and individualized finance management due to this data sharing. FinTech companies will also be able to gain monetarily from open banking in addition to users when it comes to rewards. Finance lenders can gather information on the risks associated with lending to customers and tailor loan interest rates to client profiles. FinTech companies can also give their clients the ability to transfer, receive, and save money from their preferred bank accounts by implementing open banking. Additionally, users get access to numerous bank accounts through a single application.
Also Read: Top Security Concerns in The Fintech Industry to Look Out For
Embedded Finance
Another significant growing concept that many FinTech companies are adopting is embedded finance. By utilizing digital technologies, embedded finance enables non-financial enterprises to provide their clients with financial solutions. In contrast to reselling financial services, embedded finance is grabbing the attention of digital service providers as it opens up new revenue streams at a low marginal cost. This development in digital technology will make it possible to provide customers with brand-new experiences that will encourage customer retention.
Voice Payments
As per Statista’s report on “Number of voice assistant users in the U.S. 2021-2025,” the number of voice assistant users in the U.S. in 2021 was estimated to be around 120.4 million, or 46.2 percent of the population. By 2025, there will be 130.1 million people using voice assistants worldwide.
FinTech companies will continue to provide a completely hands-free customer experience in 2023.
By incorporating voice authentication into their applications, developers enable users to check their account balances and make payments using voice commands while multitasking.
Voice technology will take the place of manual data entry, enhancing the accessibility of financial services, particularly for those with disabilities.
Virtual Cards
One of the safest methods of paying for products and services will be virtual cards. The user uses a temporary 16-digit card to make purchases without providing the details of a real bank card. On mobile devices, virtual cards will be kept in digital wallets and utilized for contactless transactions. The market for virtual cards will grow tremendously as a result of the development of digital technologies and the desire for solutions that improve productivity and ease across company operations.
Also Read: CFOs Playbook to Reimagine Procurement Amidst the Economic Downturn in 2023
Robotic Process Automation
RPA will be used by financial businesses to automate human interventions and speed up business operations. RPA in the FinTech industry will replace tedious and monotonous work by learning from users’ actions in a Graphical User Interface (GUI) and then performing those actions as needed. RPA will be used by FinTech companies to install a “robot” that handles repetitive tasks, including data entry, storage, management, reporting, insurance claims, ticket generating, and so on.
The aforementioned Fintech trends for 2023 are starting to accelerate the expansion of the finance sector. By enhancing their service delivery models, upholding their brand image, and enticing new clients, banks and other financial institutions can expand their customer experience capabilities thanks to modern technologies.
