The world is changing, and payment technologies and business models are no exception. So what disruptive technology are we about to witness and would that have a profound impact on our society as we know it?
Let’s dive in and explore what’s underneath the surface. Below we present some major trends experts are hyped about this year. Keep on reading.
Future Payments Technologies | 2023 Trends
Following the coronavirus pandemic, the need for digitalization has become evident. The financial sector is one of the main adopters of novel technologies – with more and more fintech providers playing a crucial role in reshaping the traditional financial landscape.
If paying with a credit card or wire transfer was new and revolutionary years ago, now we can see more and more platforms that facilitate international payments, peer-to-peer lending, Buy Now Pay Later, split payments, and B2B transfers. It’s interesting to mention that it’s not only technology but the actual value that companies focus on. New tools are here to create better customer experiences, help deliver social impact and allow companies to tap into new opportunities. As a result, some leading financial trends to keep up with are:
- Now platform-based financial services that offer 100% customization are highly in demand. Just like AI-powered CRM systems that can deliver smooth transitions to digital financial operations! This is particularly important for the lending sector where fast onboarding and improved risk management could lead to access to fair financial services for customers and tailored-made solutions for businesses.
- Another leading trend that is expected to unfold is social payments. The rise of social platforms has led to the use of numerous social payment apps. These are peer-to-peer apps that help people transfer money, split a restaurant bill, and share rent. You no longer have to wait for hours or days to process transactions!
- Blockchain technologies still hold immense potential to revolutionize not only how we process payments but share data, records, and more. Even if you are not planning to invest in Bitcoin or other cryptos, we have to admit that the technology behind these digital currencies is here to stay far beyond 2023. So we can just wait and see what will happen in the years to come.
Mortgage Industry | Overview & the Future of the Mortgage Industry
Banks and fintech providers are slowly uniting to provide safe environments and convenient payment options to consumers. Installment loans are a clear example of customer experience put first. The lending sector, in particular, is one of the major players that can benefit from advances in payment technology.
With mortgages being the most used loans globally, we should explore their current state and also their future. As we know, borrowers use mortgages to purchase a home or land. Thus, given the large amounts of money they cover, it’s clear lenders should manage risk effectively. So here is what experts predict:
- One way to protect both users and businesses is via the rise of digital IDs, credentials, and identification created specifically for the digital world. This technology will also support interoperability across sectors and borders.
- With the rising interest rates amid the exorbitant inflation we are witnessing, experts predict that more and more borrowers might start opting for loans with fixed rates. Thus, lenders should adapt and meet customer needs. Note that currently, in the US alone, over 2 million borrowers are on variable-rate deals, which can increase the amount of debt over time significantly.
- Flexible and alternative payment models are also expected to stay in order to make mortgages more affordable – a hot topic veiling the current housing market. Alarmingly, over 750,000 borrowers in the US alone are at risk of defaulting. Thus, technology innovations should be implemented to target such problems and deliver real-world solutions.
Business Models of the Future
It’s not only the credit sector that’s about to change to the point of no return. The business models of the future are quite promising across various sectors, such as online businesses. From 5G to the Internet of Things, digital disruption will hit most industries. According to the World Economic Forum, this will change the employment landscape as well.
- A quarter of tech leaders admit that e-commerce apps will become the focus of improvement as more and more users turn to digital services and experiences.
- Modern barter is another evolving concept as people start sharing and exchanging knowledge, experiences, and skills instead of money.
- Last but not least, a trend worth talking about is going mega-hyperlocal. Focusing on local regulations, needs, and potential is also in sync with the need for sustainability and social justice. This is also important because of the number of unbanked people across the globe, which account for over 1.4 billion. Fintech providers can challenge conventional thinking and strategies and help deliver more accessible services.
In conclusion, the year 2023 will continue to challenge traditional models in the financial, business, and social sectors. While we can’t say what the future holds for us, we can attest that fintech providers like Tarya Fintech can accelerate such digital changes and help both consumers and businesses access transparent technologies at the click of a button.