The financial industry has always been at the forefront of innovation and has evolved at an unprecedented rate over the past few decades. Fintech or financial technology has changed the game in the financial industry by introducing breakthrough technologies and offering better service to customers. Today we take a closer look at some of the top fintech trends to watch out for in 2023.
Artificial intelligence, machine learning and fintech
AI and machine learning are among the most significant fintech trends transforming the financial industry. Both AI and ML are changing the way financial services companies work, making banking faster, more efficient and more accurate. These technologies are used to develop chatbots and virtual assistants that can help clients with their questions and provide personalized advice, freeing up advisors’ time. Businesses use language models like ChatGPT trained by OpenAI to answer customer questions and deliver valuable insights.
Businesses need to be aware of both the opportunities and challenges of ChatGPT for financial services. While it can definitely be a useful tool for improving customer service (and not only), language models tend to generate false information not based on actual data or knowledge, and companies need to keep in mind that regulations on using AI are changing fast change , so don’t be surprised by new changes.
Low-code platforms for financial services
Another fintech trend gaining traction is a low-code approach to developing fintech platforms. Low-code platforms allow developers and regular users to build applications with a simple visual interface, typically using drag-and-drop components instead of writing code.
This approach can significantly reduce the time and resources required to develop new applications and help financial services companies bring new products and services to market in record time.
Efficient data processing with cloud computing
With massive amounts of data growing every day, the fintech industry constantly needs faster and more efficient processing. Cloud computing enables financial services firms to store and access data and applications online rather than on-premises, significantly reducing costs and improving scalability.
In addition, cloud computing can also improve data security by providing robust backup and disaster recovery capabilities.
Take advantage of embedded finance
As 2023 gathers momentum, the fintech industry is looking to embedded finance as the next big thing. Embedded finance involves the integration of financial services with non-financial applications and platforms – for example, an e-commerce platform could offer a range of financial services such as credit or insurance. This approach can significantly improve the customer experience and provide an additional revenue stream for financial companies.
With embedded finance, users don’t have to switch apps to access financial services, allowing customers, for example, to make their purchase now and access financing services to pay for the product over time. According to research from McKinsey & Company, the embedded finance market is expected to double in size in the next two to four years.
What does 2023 look like for the financial sector?
Fintech is revolutionizing financial services again – which is only to be expected given the past few years. AI and machine learning improve efficiency and accuracy in financial services, and low-code platforms reduce development costs and time and make app development more accessible. Cloud computing also improves scalability and data security for financial services companies, making large-scale solutions easily accessible without large infrastructure investments.
Finally, embedded finance breaks new ground, creates reliable revenue streams, improves customer experience, and helps financial organizations capitalize on valuable leads at crucial moments. Businesses that embrace these trends will definitely be well positioned to thrive in the years to come, and with the help of technologies like ChatGPT, the growth opportunities are endless.
Throughout 2023, keep your eyes peeled for new amazing technologies – we might be in for a few more surprises!