CASHING IN to carry out affordability checks before approving loans . The financial promotion rules for BNPL are also set to change to ensure advertisements are clear and do not mislead consumers .
Searches for ‘ BNPL ’ have seen a 130 % increase since 2017 , while the term ‘ how does Klarna work ’ also shows an upward trend , with search volume peaking in December 2022 , just before Christmas when families are faced with extra financial pressure .
Cryptocurrency will become an everyday way to pay
In 2023 , we expect to see a growing number of financial institutions accept cryptocurrency as a form of payment .
Mastercard recently announced it is keen to start rolling out plans to make crypto an ‘ everyday way to pay .’ Acting as a bridge between crypto trading platform , Paxos ( used by PayPal ) and major banks , Mastercard will handle the major roadblocks , including regulatory compliance and finance .
“ As more and more people invest in cryptocurrency , businesses are starting to adopt it as a form of payment .”
“ The term ‘ pay with crypto ’ has seen a surge of interest , with searches increasing by 136 % since 2017 and with huge firms such as Google jumping on board , in 2023 , we predict more banks and financial providers will join them .”
Contactless wearables
The Internet of Things ( IoT ) is making waves in the FinTech sector , allowing consumers to pay for goods and services faster than ever with wearable technology .
Alongside smartphones , bracelets and smartwatches are now being used to make payments instead of a bank card .
The Apple Watch is one wearable that took the world by storm , showcasing an upward trend in 2022 . Smart rings are also on the rise , with searches for the revolutionary wearable increasing by 180 % globally .
We predict this trend will continue to grow in 2023 , and in light of this , FinTech companies will increasingly use these connected devices to gather customer insights and make more informed decisions .
RegTech
A fairly new buzzword that you may have heard in 2022 is RegTech – but what is it and why does it matter ?
The rise in digital products means there is an increased risk of data breaches , cyberhacks and money laundering – but that ’ s where RegTech comes in . RegTech is a group of organisations that solve challenges arising from a technologydriven automated economy .
The RegTech industry is expected to disrupt the regulatory landscape by providing advanced tech solutions to compliance issues that arise in the FinTech sector .
Despite being coined in 2008 , in the last five years , searches for ‘ RegTech ’ have increased by 184 % and on top of that Grand View Research predicts a 52 % growth in the technology market by 2025 , giving it a value of US $ 55.28 billion .
Artificial Intelligence
AI will continue to drive infrastructure decisions in the FinTech sector . Chatbots specifically will become more sophisticated and could soon be the future of FinTech customer service . In fact , studies from Juniper Research suggest that successful banking-related chatbot interactions will grow 3,150 % between 2019 and 2023 , saving banks a lot of time .
Over the last five years , Google searches around the topic have seen significant growth too , with the term ‘ AI in banking ’ increasing by 104 % globally .
Tribe-based banking
The term ‘ digital tribe ’ has become popular in recent years , used to describe online communities who share a common interest and are usually connected through social media or other online platforms .
In 2023 and beyond , we predict more businesses will engage with online ‘ tribes ’ as a way to form deeper connections with consumers .
As such , we also anticipate more businesses launching their own financial services centred around the tribes they are connected with .
Root added : “ In the past , people from diverse communities have been uncomfortable with legacy banks because they have not been represented , don ’ t feel empathised with and aren ’ t open to communication .
“ In this new era , banks need to be more authentic and receptive to communication . People from these communities will soon be looking for a bank that gives them a sense of representation and openness .” � www . intelligentfin . tech
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