The global market for financial technologies (Fintech) is growing rapidly. In 2021, the market size was estimated at USD 112.5 billion. By 2028, it is expected to reach USD 332.5 billion , with a compound annual growth rate of 19.8%. The growth of financial technology market is propelled by the increasing demand for enhanced online and mobile banking, payments, and investment services.
Financial technologies are changing the way people interact with money. They send and receive payments, make loans, and invest in various assets faster and efficiently. This benefits consumers, businesses, and financial institutions alike. Fintech is making it easier for people to manage their finances and access financial services, helping promote economic growth. Here are a few things to expect in 2023 for financial technologies:
Growth of Digital Banking
As more and more businesses and consumers turn to digital banking, innovative technologies contribute to enhancing the banking experiences of both businesses and consumers. This can be seen in the increasing number of businesses adopting these technologies for their payment processing needs and managing their finances. It helps businesses by providing cashless transactions, tracking spending, and reducing fraudulent activities. This helps protect businesses from risks and helps them save time and money. By using digital banking technologies, businesses can provide customers with a more convenient way to access their account information and make transactions.
In addition, there can be an increased focus on bank partnerships within the fintech industry. In particular, fintech startups will look to partner with banks to gain access to their customer base and distribution channels. Additionally, banks will seek out fintech partnerships to access new technologies and innovation. These partnerships will likely vary regarding the services offered and the level of collaboration between the two parties. However, all of these partnerships will be aimed at helping both parties better serve their customers.
Development of Payment Methods
Different businesses are benefiting from digital payment growth as it offers better efficiency and allows real-time payment tracking. For consumers, digital payments offer more convenience and security. Aside from daily purchases, consumers can also access their loans quickly and easily, allowing them to stay on top of their finances.
The lending business is one of the most important segments of the financial technology market and is expected to continue to grow at a rapid pace. Companies that want to stay competitive in this space need to invest in innovative technologies that can meet the needs of today’s consumers. This includes incorporating payment methods that provide convenience and boost efficiency. Lenders can streamline their operations by using secure push to card transactions on a platform that can also offer them repayment solutions and automated loan management. This will allow them to save time and resources while providing a better customer experience.
Blockchain
Blockchain technology’s market is expected to grow at a rate of 42.8%, reaching a global revenue of USD 19.9 Billion by 2023 . In the financial and banking industries, blockchain is one of the most promising options for companies looking to streamline their operations and improve transparency. Blockchain can manage various aspects of the financial and banking industries, including payments, settlements, and loans. It can also be used to create customers’ digital identities and protect against fraud. Additionally, blockchain can create transparent auditing systems that help businesses and financial institutions keep track of their finances. Overall, blockchain offers many advantages for the financial and banking industries. These include security, efficiency, transparency, and reduced costs.
Artificial Intelligence and Automation
The application of artificial intelligence (AI) in banking and finance is already evident in the use of chatbots for customer service, robo-advisors for investment advice, and predictive analytics for fraud detection. In the future, AI will become even more integrated into banking and finance, automating more processes and increasing efficiency. For example, AI could review loans based on specific criteria or generate invoices and bills. This would save time and money and increase accuracy as human error would be minimized.
Moreover, automation has become an integral part of financial business operations, as it offers many benefits that include cost reduction, accuracy improvement, and increased efficiency. Automation allows businesses to streamline their processes and improve their overall performance. With AI’s help, banks can automate more processes, which will, in turn, improve their services and products. This includes automating customer service and providing digital tools to help customers manage their finances. As a result, customers can expect better services as well as faster and more efficient transactions.
Emerging financial technologies hold a lot of potential for change in the financial industry. Businesses and consumers should keep an eye on these technologies and be prepared for the changes they could bring.
