Where will integrated finance go in 2023?
As we all know, integrated finance refers to the integration of financial services into non-financial products and services, such as retail websites, mobile apps, and even physical products. In other words, it is making financial services more accessible and convenient for consumers by integrating them with the products and services they already use.
Over the past few years, we have seen a significant increase in the adoption of integrated finance and this trend is expected to continue in the coming years. In this article, we will explore some of the key trends and developments in the world of integrated finance and try to predict where it will head in 2023.
One of the biggest trends in the world of integrated finance is the rise of new banks and digital single banks. Neobanks are financial institutions that operate entirely online, offering a wide range of financial services such as checking and savings accounts, loans and investment products. They have no physical branches and rely on digital channels to attract customers and deliver services.
Digital-only banks have seen significant growth in recent years, and this trend is expected to continue in the coming years. According to a report by Boston Consulting Group, the number of new banks worldwide is expected to triple by 2023, reaching more than 300 million customers.
One of the key advantages of neobanks is their ability to provide a smoother and more convenient banking experience for consumers. They often have user-friendly mobile apps that allow customers to access a wide range of financial services from their smartphones, and they also offer attractive rates and fees.
2. Fintech x Bank Partnership
Another trend in the world of integrated finance is the rise of fintech companies that provide financial services through partnerships with traditional financial institutions. These companies are using technology to streamline and automate financial processes, making it easier for consumers to access financial services.
Fintech companies are increasingly partnering with banks and other financial institutions to provide a variety of financial services, including payment processing, lending, and wealth management. These partnerships allow traditional financial institutions to harness the technology and innovation of fintech companies, and help fintech companies reach a broader customer base.
One area of integrated finance that is expected to see significant growth in the coming years is the use of financial services in e-commerce. As more and more people turn to online shopping, retailers are looking for ways to make the process easier and more convenient for their customers.
One way for retailers to achieve this is to integrate financial services into their online stores. For example, some retailers offer financing options for customers who want to make a large purchase but don’t have the cash upfront. Other retailers are integrating payment processing into their websites, allowing customers to pay with their preferred payment method.
4. Sharing Economy
Another trend in the world of integrated finance is the use of financial services in the sharing economy. The sharing economy refers to the growing trend of people using technology to share resources, such as cars, homes, and even tools and equipment.
Financial services are becoming increasingly important in the sharing economy as they allow people to easily and securely pay for the resources they use. For example, ride-sharing platforms like Uber and Lyft use payment processing to allow riders to pay for their ride, and ride-sharing platforms like Airbnb use the process. payment to facilitate rent payment.
In conclusion, the world of integrated finance is constantly evolving and we can expect significant growth and innovation in the coming years. Neobanks and digital-only banks are expected to continue to grow rapidly, and fintech companies are expected to play an increasingly important role in the financial sector. The use of financial services in e-commerce and the sharing economy is also expected to continue to grow, making them more accessible to everyone.