Fintech Market Overview

People use money every day and will continue to do so. But if a thousand years ago money was any valuable object, and 30 years ago it was banknotes, today, it comes in the form of digital numbers on a screen. Money of the new age is invisible and intangible, so people need Fintech applications to access it.

In this article, the experts at Grapherex gathered the most incredible trends in the financial technology market: from online banking built into messengers to paying for purchases via smart speakers. Let’s see what the Fintech market has to offer in 2023.

What Is Fintech?

Fintech is short for financial technology. This applies to financial products, applications, and even business models developed through innovation. These services are usually provided online. This sector includes payment systems, money transfers, financing, lending and borrowing platforms, money management tools, robotic consulting, insurance, and more.

With Fintech, users can make online payments, in some cases, without opening a bank account via an independent payment system or a virtual card. Moreover, Fintech improves customer security, introducing fraud protection and advanced data encryption.

Investments in Fintech in 2021 reached $91.5 billion, which is almost twice as much as in 2020, according to Forbes. The sphere is largely supported, which means the future of Fintech is bright. The market is projected to grow by 13.9% annually between 2022 and 2028. As for the latest news, the Fintech market in 2023 is worth about $165.17 billion.

Fintech Market Trends 2023

Today’s Fintech market is characterised by a lot of growth in digital banking, as well as increased interest in cryptocurrencies. While these trends were already on the rise, the pandemic has only accelerated their growth. Banks turn to Fintech solutions to offer services purely online and eliminate the need for physical interaction.

Fintechs integrate financial services with traditional platforms, which opens up new opportunities for customers.
They get easier access to investing and making online purchases. Artificial intelligence is driving much of the market growth — AI interfaces, chatbots for customer service, and personalised dashboards are becoming more and more common.

Fintech developers explore technologies like crypto and blockchain ecosystems for more efficient regulation and management of financial services. Blockchain technology seems especially promising, securing information about transactions in an open ledger and confirming its validity.

Key Future Tendencies

In January 2023, analysts of the international payment integrator PayU made their forecasts on the main trends that would determine the future of the financial technology market. Let’s see what trends are there.

Transparency and Advanced Data Security

The Fintech sector is committed to maintaining transparency. Emerging solutions will be carefully checked and verified because there is a growing need for enhanced security measures to prevent online fraud. Internal processes of Fintech platforms should also be clear and transparent to guarantee that customers make online purchases securely. Platforms should comply with strict industry laws and use advanced security protocols to keep customers safe.

Transformation of Cross-Border Payments

Financial organisations are looking for ways to improve business processes and reduce costs. That’s why we are likely to see the emergence of new payment systems and business models that will offer cost-effective cross-border payments. The rise of e-commerce in 2023 will further transform cross-border payments, and this industry requires innovations to improve international trade.

Innovations in Payment Systems

Cryptocurrency and blockchain are expected to see global adoption growth. They offer many benefits over traditional payment methods, but only a few countries allow and regulate these assets. To increase trust in the crypto industry worldwide, this sphere requires unified regulation. Fintech will help companies develop innovative payment services with customer needs in mind.

Types of Fintech Apps

Here are the most common types of financial apps you can find in today’s Fintech market.

• Digital banking apps — Online banking apps allow users to manage their finances digitally. They offer checking and savings accounts, credit cards, and loans. Their features include mobile check deposits, bill payments, and account balance tracking.
• Payment processing apps — Such apps help users transfer money between people or businesses. They are used for everything from paying a friend back for dinner to processing payments for a company.
• Insurance technology apps — Insurtech apps offer convenient digital insurance solutions. Users buy insurance policies inside an app, fill claims, track their statuses, and communicate with experts.
• Investment apps — Using these apps, users can invest in stocks, bonds, and other financial assets, including indices and metals. There you may find a robo-advisor, investment tracking, financial news, and market analysis.
• Exchanges and exchange services — Exchange platforms for PCs and mobile devices help users buy and sell currencies and trade cryptocurrencies and other digital assets like NFTs.
• Personal finance management apps — Sometimes, we need to keep track of spending, plan our budget, and monitor our account balances. Here, personal finance management apps come to aid.

The Newest Types of Financial App

Many financial applications not only follow trends but also offer developments based on the latest technologies, artificial intelligence, natural language processing, machine learning algorithms and modern hardware. Let’s see what appeared not so long ago.

Payments in Messengers

In addition to their traditional features like texting and calling, some messengers now offer payment options. While this is a relatively new development, there is plenty of potential for messenger banking solutions. This is especially true as we see the success of services like WeChat banking in China and Facebook Pay in the US and beyond.

Payments Using Smart Speakers

Smart speakers have also entered the payments space. These devices are no longer just for booking rides or receiving traffic updates. With just a few voice commands, users can now purchase goods and make transfers without logging into online banking apps. This is a quick and easy way to handle finances with no need to pick up your phone or computer.

NFC Payments

NFC, or near-field communication technology, is a new in-store payment trend. Users need to wave a smartphone over a reader to make a transaction. NFC payments became especially popular during the pandemic, as they allow users to avoid physical contact with surfaces and maintain safety.

Top 3 Fintech Apps

Let’s see which financial applications have achieved maximum success in their niche. We have created a set of the best applications across various categories.

Payment Processing Apps: PayPal

PayPal is the globally known payment system that allows users to make and accept payments on PayPal wallets with zero fees. PayPal allows users to make purchases in thousands of online stores all around the world. The private data is protected; users need only an email address and a password to make in-app payments. Its closest competitor, Payoneer, is another global payment system chosen by millions of users from 200+ countries.

Finance Management: Mint

This is a website and application offering financial management tools. It lets its users control personal assets, keep track of spending, and monitor credit health for free. This is a great tool for budget planning. Mint offers credit cards, personal loans, and investments and provides users with additional services like a bill payment tracker and budget alerts.

Multifunctional Super-App: Alipay

Alipay’s potential has no limits. This app can definitely be called a super app because it combines mini-applications, each of them meeting a particular customer need. Over the past 20 years, the platform has changed from an app with a couple of functions into a set of hundreds of convenient tools. It is not only used by customers but also embedded in the business processes of almost 500,000 companies globally. There you can find money transfers, insurance, shop coupons, fund management tools, loans for students, and even third-party services.