Top 5 FinTech Trends to Watch in 2023
The rise of the FinTech industry is completely changing people’s interaction with money. It makes finance management quicker and more efficient and enables individuals to achieve their financial goals faster. Keep reading to explore 5 must-know FinTech trends for 2023 and how they impact your everyday life.
#1. Virtual Bank Cards
A virtual bank card is a digital payment tool that works the same way as a physical credit or debit card. The difference is that these cards are online products, enabling people to order and obtain them electronically within seconds. You don’t need to wait for weeks until your bank prints and mails a traditional card to you. Instead, you can obtain your virtual card to your device or wallet app within seconds.
Unlike traditional cards, virtual bank cards offer more convenience, security and can’t be stolen. The most known examples of virtual cards are from such popular neobanks as Revolut, N26, and Monzo.
#2. P2P Lending
Alternative lending, also called P2P lending, is one of the must-know financial trends for 2023. It allows individuals to borrow money without going to a traditional bank. P2P lending sites connect borrowers with potential investors with lower interest rates than conventional banks.
Each website sets its interest rates and loan terms depending on the borrower's creditworthiness.
This alternative lending form is becoming increasingly popular in recent years, allowing individuals to repay their credit card debts, repair their homes, or finance auto purchasing at lower interest.
#3. AI and ML Services for Financial Technologies
Artificial intelligence (AI) and machine learning (ML) have changed the lives of millions of people worldwide and, now, are increasingly often used by various financial institutions. They allow organizations to function faster, increase efficiency, and introduce new work methods.
AI and ML services provide individuals with 24/7 access to bank accounts and technical support and help make all transactions significantly faster using smart software solutions.
PayTech is one of the most actively developing areas of FinTech in 2023, referring to any payment that involves technology. It can be QR code payments, instant payments, etc.
PayTech makes payments more than an exchange of money, playing a significant role in people’s lives, allowing cross-border transactions, and introducing more convenient payment methods.
#5. Decentralized Finance (DeFi)
Decentralized finance, also known as DeFi, is among the must-know FinTech trends. DeFi is a new financial paradigm that uses cryptocurrency and blockchain technology to conduct transactions, financial services, and exchanges.
The main difference between DeFi and traditional financial institutions is the lack of central authority. Instead, the authority is concentrated in the hands of traders, providing them with more power. They have control over cryptographic encryption keys, enabling custody of cryptocurrency assets.