With all the buzz around financial technology, what are the finance trends you need to know about to make your business succeed in 2023 and beyond?
While we can’t predict the future, we’ll try to cover some of the hot topics in the sector. So here are the leading financial services trends most experts are hyped about.
Financial Services & Industry Trends to watch out for
Given the importance of technology in our world, financial industry trends and technologies keep evolving, for sure. So here are five major aspects of the market any business and customer should be familiar with:
- Mobile payments and social apps:
With mobile phones being an integrated part of our lives, experts are certain that mobile payments will continue to grow and evolve. Google Pay, Apple Pay, PayPal – you name it! Now customers can pay for a trip, for those fancy shoes they found online, and even for their education, all at the click of a button.
Parallel to that, future payment technologies focus on leveraging the power of social media platforms and improving social payments, which is among the top recent trends in banking. Thanks to all the peer-to-peer (P2P) apps available out there, social payments are highly popular among users. Did you know that 84% of consumers say they’ve used a P2P service? Nowadays, you can even split the restaurant bill in a second!
- Fintech solutions across sectors:
Digital transformation is evident across numerous sectors, particularly in the financial field. More and more fintech solutions like those provided by Tarya Fintech aim to speed up operations, make lending accessible and improve user experiences.
Even established banks are turning to digital solutions and APIs to automate processes and improve user journeys. This often happens by partnering with fintech companies and tech providers. There is no doubt that such partnerships can give birth to new digital banking trends to follow beyond 2023.
- DeFi solutions and digital currencies are here to stay:
Though Elon Musk hasn’t tweeted anything about Dogecoin for a while, we have to admit that digital currencies are here to stay. Thanks to novel blockchain technology, DeFi (or decentralized finance) has the potential to revolutionize the financial sector by removing the middleman. Now you can exchange money via peer-to-peer platforms without paying extra fees to intermediaries or banks.
Here cryptocurrencies also play a major role. Some experts say that cryptos may soon be used for everyday transactions, not only by traders or crypto enthusiasts. Well, this is a topic that can even make us question the need for physical cash, right?!
- AI and ML in finance:
With all the fuss around AI language processors like ChatGPT, perhaps you’re familiar with the role of AI in today’s society. The truth is that the fintech industry is one of the main adopters of ML to mitigate risk and improve credit decision-making.
Furthermore, many experts believe that the proper use of AI can shape various banking technology trends. For instance, AI technology could be employed across areas such as customer service (chatbots), portfolio management, and biometric authentication processes, among others.
- Banking industry trends with a focus on ESG investing:
Last but not least, ESG, which stands for environmental, social and governance, is one of the hot topics in 2023. With more people interested in fighting climate change and supporting social movements, financial institutions can’t steer clear of such global problems. As a result, many organizations have started to prioritize sustainability and equal access to finances.
While achieving financial equality is a multifaceted problem – with individuals, governments, and policies involved – many fintech providers are here to help. Some fintech providers openly aim to facilitate access to credit services, especially among the unbanked population, which has reached 2 billion globally.
Recent Trends in Banking: Conclusion
While the five trends above are just the tip of the iceberg, there is no doubt that technology and consumer demand can transform not only the financial sector but the way we perceive money.
From cryptos shaking up the basics of banking to grassroots and fintech providers like Tarya Fintech that aim to bridge the wealth gap globally, in the end, all finance changes have one thing in common. It’s customers – like you – that now dictate how financial institutions should work.
While there are still many tech obstacles and global regulations to deal with, financial institutions are definitely on their way to a major transformation. And we can only wait and see what finance trends can appear in the years to come!
The tentacles of disruption have extended to practically every industry, revolutionizing even traditional institutions, such as banks. Take mobile banking, for example, which we all know and love!
Let’s face it – mobile banking is one of the most delightful things ever. We eventually came to terms with the fact that one could process almost any banking transaction from the comfort of their home. Then this realization dawned – why not more? As a result, a myriad of new features and functions are being developed and deployed by banks worldwide, with some mobile banking trends gaining more traction than others.
So let’s explore some mobile banking trends in 2023 and beyond.
Recent Trends in Mobile Banking
Looking back, the year 2020 was a defining moment for the future of many spheres of everyday life. The banking sector was no exception, with all its financial solutions. The effects of COVID-19 and the resultant grounding of physical interactions led to a more decisive shift towards remote financial services, the chief of which is mobile banking. Banks had to scale their services to remain accessible to their customers. In fact, they made a number of digital and mobile features the cornerstones of their service offerings.
Three years down the line, mobile banking trends have become more apparent. Some digital services and practices have become widely normative across the banking sector. So here are some mobile banking trends to get familiar with.
- Biometric Banking: Mobile banking comes with its own risks. Password compromise, mobile hacks, and security bypasses are just some of the risks. Thus, the need to improve the security systems that come with mobile banking platforms has become evident. One of the most convenient solutions in the industry is biometric authentication. This not only establishes an incredibly secure banking interface but also results in less hassle for users. After all, instant face recognition or fingerprint scanning would likely be more convenient than having to input multiple passwords.
- Contactless Purchases: Contactless purchases are some of the most popular trends in recent times. This involves the use of specially designed payment mediums or ATM withdrawals, without any direct contact with the payment terminal. Contactless purchases were needed to reduce the contamination risks the coronavirus pandemic came with, and continued to evolve thanks to their convenience. According to a study by Light It Global, 20% of mobile banking users admitted to using contactless purchases more often post-COVID.
- Voice Recognition: With the development of AI-empowered mobiles, voice recognition transitioned from a distant dream to a renowned reality. Mobile assistants like Siri and Alexa can help you conduct a Google search, make a call, or even play music. This trend has made its way into the mobile banking sector, with voice recognition providing a convenient and savvy way to operate mobile banking apps. Use cases range from security authentication to interface navigation and transaction performance. This is an especially popular development among visually impaired users. No wonder this mobile banking future trend will gain even more acceptance with the passage of time.
- Chatbot Services: In spite of the acceptance of mainstream mobile banking, one of its significant shortcomings is the lingering risk of a glitch or lag in operation. Operational difficulties and errors, such as failed transactions, could be a pain for users. Thus, effective assistance is a must for any banking institution. A 21st-century solution is a chatbot service that provides 24/7 assistance. Chatbots are a growing trend across sectors, so it is no surprise that mobile banking is beginning to leverage its potential.
- Artificial Intelligence and Machine Learning: Is there any mainstream technological service that does not deploy AI and ML? Well, that might be harder to find than a needle in a haystack. Because these developments are integral to many features that make mobile banking possible. They provide a platform to facilitate the functionality of many features, such as chatbots and biometric authentication. Besides, they are crucial to the optimization of customer experience and banking services.
- Reward-Based Banking: Mobile banking channels are a substantial investment and would give many returns to banks moving forward. However, this is dependent on how well users adopt their banking services. One of the recent trends in boosting customer engagement and retention is by operating a reward-based system. Rewards and milestones incentivize customers to use mobile banking services more often – a trend that will keep growing.
Mobile Banking Trends | Conclusion
The truth is that banking has been revolutionized to the point of no return. Banks have transcended from being tagged traditional institutions to becoming one of the most technologically-driven services in the world.
Mobile banking is the crux of this new generation of services in the banking industry. As such, it becomes imperative to keep an eye on mobile banking and its trends. The recent trends in mobile banking can give us some insights into the future of financial services in an increasingly technological world, shaping up to be a story in which we will all take part.
You can also join this new world with a fintech provider like Tarya Fintech now!