Fintech is reaching a tipping point amid rumors that the industry is “losing its luster”. We have seen reports of declining valuations, layoffs, staff layoffs and hiring freezes as companies struggle to raise new funding. Some said goodbye before saying hello.
all month of january Fintech Times, We share industry predictions for 2023 and ideas for “moving fintech forward” in the next 12 months.
Today we hear what leaders at Enfuce, Dreams Technology, DivideBuy and Xero expect.
Fintech can be a ‘force for good’
There will be less funding for innovative fintech entrepreneurs over the next year as a recession looks inevitable across developed economies. Dennis Johansson Co-Founder and Co-CEO of European Cloud Native Publishing and Processing Pioneer Inspire.
“It will be interesting to see not only the impact of the recession on innovation, but also what kind of companies are able to pursue innovation. Partnerships are expected to become prevalent in 2023 to innovate.
“Recessions often create opportunities and streamlined ways of doing things. Fintechs already offer more agile and cost-effective financial services solutions, so a downturn in the economy is a natural fit for the fintech industry. We anticipate creating more opportunities.
“The recession also presents an opportunity for systemic change. In our view, fintech needs to go beyond functionality and become a force for good. Having a clear purpose that positively impacts lives is a distinguishing attribute that attracts consumers’ attention.
“Fintech should not just be about creating solutions to business problems. Whether it is ESG, supporting financial inclusion or social mobility, fintech has solutions that can bring about immediate and long-term change for the benefit of the broader society, and we expect to see more in the coming year. We know this will be more important than ever.”
B2B Fintech Sector “Booms as Third-Party Collaboration Increases”
henrik rosval CEO & Co-Founder dreams technologyEngagement banking solutions provider says banks have been forced to accelerate their digital transformation since the pandemic began.
he said: Opportunities for partnerships between banks and fintechs.
“Looking into 2023, the conditions created by the cost of living crisis will put even greater pressure on financial institutions to further digitize their services and meet evolving consumer needs and desires. As a result, the number of banks working with third-party providers has increased significantly, meaning that the level of growth and investment in the B2B fintech space will reach new heights.
“In addition, B2B business models are more insulated from market volatility than B2C business models and are less vulnerable to rising inflation and interest rates. Declining demand and an increase in defaults are expected, which will further contribute to making B2B fintech an attractive proposition for both financial institutions and the investment community.”
Fintech faces a period of recalibration
Teresa ByrneChief Commercial Officer installment purchaseA European POS financial company.
“Merchants have had a tumultuous few years due to the pandemic, but have shown impressive resilience and flexibility, pivoting sales away from bricks-and-mortar stores and going entirely online, a hybrid business that combines the best of both worlds. I am using a model.
“However, merchants are now facing rapidly declining profit margins due to product shortages caught in inflation and supply chain stagnation. They know it is a key driver for more frequent purchases, especially in difficult economic trading conditions.
“In 2023, offering discounts and alternative payment methods will inevitably become a key trend for merchants, as will leveraging the value of payment data. But even when it comes to fine-tuning customer loyalty schemes, we are still beginning to see the value in our applications, and we believe the value of this data will only increase in the next year.
“Not all merchants, financially or technically, can leverage payments as an in-house function, but instead build bespoke, flexible solutions that give consumers more control over their finances. You’ll need to look for a third party to help you with the ability to adjust as needed.
“Thus, while we believe 2023 will bring continued economic disruption, it will also be the year responsible lending becomes paramount. This will shock consumers and merchants alike through more flexible payment methods. Enabled by an exciting partnership with the potential to buffer from
Embedded services help small businesses evolve
Chris O’Neal Chief Growth Officer, Cloud-Based Accounting Software Platform for Small Businesses zerosuggests that embedded technology will continue to gain momentum in 2023.
“Embedded finance, the integration of financial services such as lending and payments with non-financial business infrastructures without the need to redirect them to traditional financial institutions, is gaining momentum rapidly. apple Ability to buy now and pay later iphone Also zero Add a “Pay Now” button to your invoice stripe When go card dress It integrates seamlessly with our platform.
“In 2023, we can expect digital platforms to roll out new value-added products and services that deliver more actionable insights based on customer data and customized experiences. It also means tying these services to existing data sources to collect the necessary customer information, where open banking innovations supported by local government mandates will emerge.”
“In the United States today, open banking innovation is market-driven. is likely to be seen.
“Unchanged for 20 years, core fintech products will be designed around a customer-driven experience and enhanced by data connectivity and open platforms. It collects rich and reliable accounting information based on volatility and cash flow, giving lenders the confidence they need to provide capital and enabling small businesses to access funds quickly.
“Ultimately, these technologies have the potential to make it easier for small businesses to access a wider range of financial services, enabling faster access to financing and seamless business workflows.”