Get ahead of this year’s financial tech trends.
Fintech companies are those that leverage new technology to create better and innovative financial services for consumers and businesses. “Fintech” is used to describe any kind of business that may work with personal wealth management, insurance, payment, asset management, and more.
There has been a recent shift for those looking to manage their finances that has drawn people to using technology to help them with this task. With this push, fintech startup companies directly help with traditional banking and financial institutions. In several countries around the globe, fintech companies are slowly taking over, providing services and products that were once found only through financial institutions.
The shift we are seeing is that of a digital age. Tech-savvy individuals are seeking easy access, convenience, efficiency, and speed in every part of their lives, including their finances. Having the ability to make transactions from the convenience of a phone or other electronic platform is what is creating this strong push towards fintech. Roughly 1 in 3 apps today are used by people to manage their finances.
Fintech is used to describe a wide range of services and products and has a relatively long history. With a name that has ‘technology” as a major concept, many think that it only refers to the most recent apps that deal with paying your bills without having to deal with physical currency, but technology has had a hand in financial management for years. Almost 65 years, to be more specific.
There is a boom in fintech companies all over the world, from Silicon Valley and New York to Asia – financial hubs in Singapore and Hong Kong to Switzerland. These startups are offering tech-enabled payments, currency exchange, crowdfunding, online lending, and wealth management services.
Keep reading to find out what trends are popping up this year with fintech.
More people are also predicted to catch onto blockchain. People are what makes the industry grow. As more people are attracted to the product, the more developments will be seen. This includes product managers and designers. Rationality and elegance will enter an industry that not only wants it, but also needs it.
Blockchain advocates and developers are also hoping to reach one goal this year. That is mobility. The technology up to this point has been a desktop game, which isn’t very lucrative since most of our major technology these days is mobile. Developers are beginning to create mobile-first, or even completely mobile, technology for blockchain.
Mobile banking will be one of the biggest fintech trends of 2023.
The way we do our banking has changed so much and is so ingrained into our lives, we may not even notice it now. Think about how you check your bank account or credit card balance. You are more than likely checking a website or even downloaded an app for your smartphone.
Mobile banking makes doing our finances way more convenient. Gone are the days where we may have to travel to the closest branch of your bank. This also heightens the accessibility of banking for average users. Also, as mobile banking adds more and more functionality to the apps, the more the average user can do from the comfort of their home or wherever they are.
From a small device in your hand, you can transfer funds, deposit money, check account information, and more. Apps like Venmo and Apple Pay allow consumers to pay each other and businesses with a simple touch of a screen. The apps are convenient, secure, and are cheaper than transferring money between bank accounts and using checks. This kind of platform has become very popular among millennials.
While banks won’t be going completely branchless, many banks are becoming more creative with their locations such as the PurePoint high-touch financial centers and the Capital One Cafe.
IPOs and Collaborations
In the past, fintech companies have had some problems going public. Could 2023 be the year that we see fintech IPOs? Many experts say yes, especially in the cases of Credit Karma and Robinhood. Other large companies are said to make headway this year with going public.
Partnerships between corporations are also expected to rise.
Artificial intelligence is no longer a word associated with science fiction movies. It is very much real, with computers that learn and even develop personalities. There are so many uses for AI including personal companionship, the service industry, and even the financial industry. From investment management to finding investment opportunities and investing your money, artificial intelligence is gearing up to help you from beginning to end on your investment journey. As less traditional financial institutions, such as banks and insurance firms, are becoming less popular, the room for fintech and AI is increasing.
AI and machine learning will continue to grow this year and may even dominate the fintech world.
Where We Come in
Fintech is a fairly new area of investment and combines two of the most promising sectors in today’s world: finance and technology. It is highly popular among small businesses and startups.
There has been a recent shift for those looking to manage their finances that has drawn people to using technology to help them with the task. With this push, fintech startup companies directly help with traditional banking and financial institutions. In several countries around the globe, fintech companies are slowly taking over, providing services and products that were once found only through financial institutions.
If you are ready to make the leap into the world of fintech, Alpen Partners can help. Alpen Partners Wealth Management International AG, the sister company of Alpen Partners AG, is now a registered investment advisor with the U.S. Securities and Exchange Commission (SEC). Together with our partner Swiss private banks, our company can now offer the full Swiss private banking experience to American clients, both resident and non-resident.
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