FinTech and the Future: 10 big finance technology trends to watch in 2023

Financial Technology (FinTech) has revolutionised the financial services, and with it, the way businesses operate. The question is no longer whether technology will revolutionise business, but which firms will most effectively leverage it for success.  Yet, according to a report from PWC, only 48% of businesses have fully embedded financial technology into their organisational strategy. To stay ahead of the game businesses, need to focus on attracting and retaining skilled FinTech professionals to drive innovation, stay competitive, and improve their bottom line. For HR leaders and hiring managers staying up to date with the latest FinTech trends will help you know which skills are in demand and direct your workforce planning and talent acquisition strategies for the year ahead and beyond.


10 big finance technology trends to watch this year

Explore the top ten finance technology trends we predict will be changing the business landscape this year, and beyond:

 1. AI and machine learning

Artificial intelligence and machine learning are making headlines around the world for the impact they are having on industries from marketing to manufacturing and AI solutions are rapidly being integrated across the financial services industries.

In 2023 we’ll continue to see widespread adoption of machine learning and AI as banks and other financial services institutions use them to improve customer service, automate routine tasks, streamline risk detection and reduce costs and the technology continues to improve.

 2. Open banking and APIs

Open banking allows different banks and financial providers to share financial data through APIs and develop new products that are more personalised and relevant to changing consumer requirements. Open banking API’s also make the process of sharing information more secure and efficient.

The growth of open banking in the UK is being driven by increasing regulations, particularly the Financial Conduct Authority’s new Consumer Duty which came into force last year and which requires firms to provide financial products that better meet the needs of consumers. Open banking has also increased competition in the industry, is driving innovation and looks set to majorly improve the overall customer experience, increasing revenue for financial firms.

 3. Digital Identity Solutions

Digital identity solutions are secure and convenient ways for consumers to manage their online financial lives making them increasingly important for accessing everything from financial products to government services. Digital identity solutions can be embedded in passports, ID cards, payment systems and smartphone apps and can substantially reduce document and identity fraud. They are expected to play a major role in the future of finance by enabling the secure and efficient exchange of information and transactions.

 4. Sustainable and impact investing

Environmental, social and governance (ESG) and sustainability issues are increasingly driving consumer behaviour and business decision making in the financial services industry as more and more people look for ways to align their investments with their values.

Organisations must ensure that their products and brand reflect these concerns as investors continue to seek out investment options that make a positive impact of society and the environment in 2023.

 5. Neobanking and digital wallets

New digital only banks are expanding into the market offering banking and financial services through online portals and mobile apps. Digital wallets provide convenient ways for customers to store and manage their money independently of traditional financial providers. Whilst these two trends have operated separately until now, as they continue to mature they seem likely to collide, threatening the dominance of established institutions and impacting the industry significantly.

 6. Smart devices and the Internet of Things (IoT)

Financial services are being increasingly integrated within the internet of things allowing customers to check their bank balances, make payments or receive alerts about suspicious payments on a variety of devices from smart watches to smart speakers. The integration of financial services with smart devices will provide customers with more convenient and accessible financial services.

 7. Blockchain

Blockchain, the decentralised ledger technology, has been around for a while, but its ability to greatly increase the security and efficiency of financial transactions mean the tech has applications in any industry that deals with payments, finance or investing. More and more financial institutions are coming to understand the benefits of blockchain so watch out for increased adoption in 2023.

 8. Augmented reality

Another headline grabbing technology, augmented and virtual reality can be used in the financial sector to create immersive and interactive customer experiences, visualise investments, or help consumers make more informed decisions. It may seem a long way off, but the use of these technologies will continue to grow as financial institutions look for innovative ways to engage with customers.

 9. Insurtech

As a niche area of FinTech, Insurtech is disrupting and improving every aspect of the insurance industry. In 2023, the insurance technology market is expected to continue to grow as more and more insurance companies embrace the power of technology to transform risk, improve customer experience and increase efficiency.

 10. Chatbots and robot advisory services

Not only can chatbots offer financial services companies a cheap and convenient method of customer service, capable of answering queries and directing customers to products, the technology is becoming ever more sophisticated. Able to offer detailed and tailored investment advice and adjust that advice using real-time market data robotic advisory services will surge in popularity as a low-cost alternative to traditional advice.

Stay ahead of the latest Financial Technology trends with FinTop Consulting

As the go-to recruitment consultants for finance, tech, and compliance roles, FinTop can help you connect with your ideal candidates for your role and for your business.

Our consultants work to build an understanding of your unique business needs which when combined with our specialised industry knowledge becomes a powerful tool to attract the skills you need.

Don’t waste time with the wrong candidates. Connect with your perfect match today.