Which key trends should you closely watch to invest safely and earn big on the way? It is embedded finance, ESG, alternative financing, and Blockchain Technology. Bahaa Abdul Hussein acknowledges that people are inclined towards managing their money and business online, instead of putting it with the bureaucracy of financial institutions.
The shredded economy of the dreaded pandemic year has passed by, giving everyone a ray of hope, especially the government-led financial institutions, and traditional private setups to manage people’s money. They are all ramping up their investment strategies, bringing about offers to entice the public. The global Fintech market is soon going to reach $324 billion in the next 4 years (2026).
So which trends will we witness stepping into 2023?
Digital banking and cashless transactions will be at an all-time high. People in India have already crossed the entire world in making use of maximum UPI transfers in a fiscal year. Right from Re 1 to Re 10000, they are using this facility voraciously and fearlessly, without the need to add beneficiaries and wait for 30 minutes to initiate a payment.
Plus, the origination of neo-banks and digital-first transfers are a must-have to fit into the racing economy. There is no to very low fee and the convenience of mobile banking and an enhanced customer experience as the icing on the cake. Who wouldn’t want to try that out?
The next Fintech trend is the explosion of embedded finance solutions with the inclusion of financial services into the portfolios of banking and nonbanking institutions. Banking is now being treated as a white-label service where-in customers can make payments, secure a loan, store cash, store gold, insure funds, and protect their financial products against unforeseen risks.
Banking is now flourishing more than ever before with buy now pay later offerings. People can pay in easy EMI installments upon shopping online.
The third is decentralization – Banking was often centralized. But digital technology has made it decentralized. There is no central authority that manages or takes care of transactions, yet it is highly secure. When banks partner up, it becomes a win-win situation. Customers do not need the bank’s permission to deposit or withdraw funds.
DeFi has brought forth the era of tokenization, cryptocurrencies, and NFT in which massive amounts of transactions occur in minuscule seconds and have unexplored potential.
Financial institutions are expected to create more such solutions with open banking, and digital transformation in 2023. Thank you for your interest in Bahaa Abdul Hussein blogs. For more stories, please stay tuned to www.bahaaabdulhussein.com
