Top Fintech Trends & Predictions That Will Dominate 2023 & Beyond

Witnessing a massive disruption in the global financial economy & the industries it withholds, we’re back again with a series of discussions on what the top fintech trends shall be. There are hundreds of Fintechs with a lot of brains & investors with the same goals to meet i.e transforming banks into smarter, more securer, & faster banking systems. As soon as the positives of digitalized & tech-driven banking solutions came floating on the business streams, financial service companies continued to flock for the adoption of high-tech & modern methods. Because of this, the Global Fintech industry is worth more than $179 billion at present, consisting of approx 30,000 startups.

The innovation of NFTs, cryptocurrencies, DeFi or decentralized banking, open banking, & other path-breaking technologies in the Fintech pipeline has transformed the future of various emerging ventures entering the world of banking, finances, trading, insurance, web 3 gaming, digital tokens or currencies, and more. 

So, will Fintech survive the transformation? How will the current state of tech space impact the future of Fintech? What’s next with top Fintech trends in 2023? Let’s get all the answers one by one!

The fintech market in 2023: statistics & trends

As the fast-growing Fintech economy diversified its reach around other financial segments, most startups & growing companies raise their interest in digitizing their products or services.  

The latest report on Google Finances, Visa, Mastercard, PayPal, Fiserv, & Intuit are the top 10 leading Fintech companies at present, including Stripe, Nubank, Tencent, Ant Financial, and other prominent companies in the list. 

And these insights further reflect that more than half of the 20 Fintech companies are based from the United States. 

No wonder, the popularity of Finance apps, services, or products has cultivated the massive demand for Fintech app development in the banking sector & small financial service providers with own their customer base. 

According to EY, the United States stands second in the list of top countries having adopted Fintech for banking & payment, Insurance, Financing, & Financial management. 

Whereas, the highest Fintech adoption rate of 90% is recorded in China with Mexico, South Africa, & UK. And if we talk about VC funding in the current or coming Fintech market in 2023, it recorded $40 billion in investments which is more than double that in previous years.    

The country/region-wise segment of VC Fintech Funding (as predicted)2023 are categorized as follows:

More Fintech Trends & Predictions that will dominate in 2023

1. Integrated Finance

More than 1.2 non-bankers have appeared across the various domains of online banking tools. The introduction of high-tech AI innovations has made it possible for Fintech to stretch out their reach to wider customers. 

The range of embedded finance has reached beyond all sorts of banking, credit, investment, & other transactions such as loan lending, insurance, & payment processing.

Not just in the Asia-Pacific region, embedded finance is an emerging game-changer in developed, developing, & underdeveloped nations with. over 1.7 million unbanked people. Even in the economical crisis, the rise of VC investments in APAC Fintech states an increase of $41.8 billion in 2022 which is twice as higher than $19.2 billion in 2021. 

Buy Now, Pay Later i.e BNPL became a dominant Fintech app development category, enabling buyers to purchase now & pay later in multiple installments. 

2. AI-powered Decisions

In 2023 & coming years, you’ve got pretty big reasons to learn how AI can shaping business intelligence for better decision making in your Fintech. 

The Fintech market in 2023 will observe the popularity of AI-powered solutions for smart decision-making in banking and Fintech operations. From issuing loans to offering automated insurance deals & fraud detection, AI algorithms will complement financial inclusion.

And on the grounds of financial decisions & ethical favors, the capability of Artificial Intelligence has been justified for mission-critical decision-making.

Our expert predictions say that AI-based systems will come up with more features to control who & how one gets access to financial services. The process of Fintech app development at Hie HQ will prioritize AI implementation for both ethical, operational, & security reasons. 

3. Contactless Transactions

Most Fintech startups in 2023 will see contactless payment as the need of the hour. Not for the post-pandemic norm but also for faster & smarter modes of money transactions. 

As per Juniper Research, contactless transactions are projected to grow up by 92% in 2023 with a transaction volume of over $49 billion. No deny, the convenience of instant & hassle-free online transactions ruled over cash transactions which reduced from 49% to 38% during the pandemic times. In Europe, 8 out of 10 payments are done digitally.

4. Buy Now, Pay Later (BNPL)

Buy Now, Pay Later is yet another financial service for present-day buyers. With lots of ifs & buts, BNPL has been a notable growth segment for the Fintech sector, where customers can buy products & choose to pay later in easy installments. 

Needless to say, BNPL is a key driver of digital transformation for Fintech with some interesting facts justifying its prominence. 

BNPL will continue thriving in the retail industry, with a collective user base of 44% from Gen Z & millennials   

5. Smart contracts will make a difference

The role of smart contracts is meant for robust, secure, & eligible anywhere. They ensure that transactions adhere to the technological, legal, and philosophical aspects of contracts signed for digital trust. 

How do smart contracts make it possible?

Now you can determine how smart contracts can eliminate the potential risks & inconveniences of traditional paper-based contracts. It speeds up the Fintech transactions making it popular trend for Finance software development in 2023. 

6. Blockchain Technology

In 2023, blockchain is most likely to get back on track. Upon surviving all the ups & downs with major crypto crashes & market fluctuations, most crypto traders & investors shall be concerned about the coming future of blockchain technology. 

However, our top Fintech trends & predictions say that the blockchain & crypto industry will see a major boom this year. When international transactions have become reportedly expensive & complex, blockchain’s cross-border applications have simplified digital transfers at higher speed & lower costs. 

Final Words

Keeping top Fintech trends in 2023 in mind, every product owner & developer must get an expert’s guide to software product development for startups to ensure project success.

We at Hie HQ, stand as a top-notch product team for the global product teams. Our tech enthusiasts are modern design creatives & product innovators who co-build scalable, custom, & high-end products for Fintech & Finance, Social media & community, Fitness & mental health, Gaming, eCommerce, SaaS apps and many more.

Our expertise lies in product design & development, UI/UX design, product transformation, business transformation, web development, mobile app development, blockchain development.