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Reflecting on the year that was for fintech in 2023

A smartphone projecting graphs and finance within the digital world alongside text that reads: Fintech Trends from 2023

Fintech in 2023

As we head into the final weeks of 2023, Ukheshe is taking a moment to reflect on the key trends and innovations that shaped the industry. In a year marked by major change, growth, and innovation, here’s a look at the biggest headlines and buzzwords, and a sneak peek at what trends are likely to dominate in 2024.

The AI & Machine Learning revolution

2023 witnessed a surge in AI and ML applications within fintech, revolutionising various sectors from banking to risk management. These technologies have enabled automated processes like loan origination and fraud protection, offering enhanced insights into customer behaviour. The integration of AI and ML has not only cut costs but also boosted performance accuracy and efficiency.

The rise of embedded finance

Embedded finance emerged as a dominant trend, seamlessly integrating financial services within existing platforms. This development allowed users to manage their finances without toggling between multiple apps. Notably, ‘Buy Now Pay Later’ gained popularity, reshaping the consumer purchasing journey and indicating a significant growth trajectory for embedded financial services.

A new era of financial control with open banking

Open banking transformed the financial landscape, empowering customers to share their financial information with third parties securely. This innovation gave customers unparalleled control over their finances and enabled businesses to tap into new markets and innovative products through efficient data exchange.

Securing the future with blockchain

Blockchain technology came into its own in 2023, serving as a secure digital ledger for various transactions. Its decentralised nature offered significant cost savings and increased transparency, potentially enhancing trust in global financial systems.

What’s hot, and what’s not, right now

So where is the industry at the moment? Despite a challenging year marked by lower technology valuations and cautious consumer spending, specialist fintech sectors have remained resilient. B2B, including both SME and enterprise SaaS, have continued to show solid demand. All of which bodes well for embedded finance in 2024. On the other hand, the industry saw a cooling interest in cryptocurrencies, following a year of volatility and high-profile controversies within the crypto sector.

What’s coming in 2024?

Looking ahead to 2024, the fintech sector faces a new reality shaped by higher interest rates, inflation, and increased investor scrutiny. This environment demands fintech solutions with clear product differentiation, market segmentation, and sustainable profitability paths.

Embracing AI and B2B

There’s a noticeable pivot towards incorporating generative AI capabilities and focusing on enterprise or business-to-business services, as consumer markets become increasingly competitive.

Strategic partnerships

Fintechs are finding stability and new opportunities through partnerships with established financial institutions and even through acquisitions, offering a safety net against market fluctuations.

Fortunately, the future of fintech remains bright. Eager to dive deeper into these trends, particularly Banking-as-a-Service? Ukheshe’s latest Banking-as-a-Service guide is here, with everything you need to know on the mega-trend shaping the future of business and finance.


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