Increased focus on digitalisation and cost optimisation
International external factors such as the war in Ukraine, and the energy crisis, will lead FinTech’s to focus their attention on cost optimisation and digitalisation as they continue to manage their business during these times.
Partnerships to scale and digitise product positioning with a fast go-to-market plan
The fintech industry will see an industry-wide push for a speedy go-to-market plan with the competition at a high. As well as this, companies hoping to get ahead will realise there is strength in numbers, and seek partnerships with complimentary financial services companies to offer a robust package. In 2022 we partnered with SAP Concur to offer a payment cloud solution that integrates issuers, processors and technology providers to enable end-to-end virtual card creation and reconciliation.
Virtual cards will be used in all forms of payments
The ease of use for consumers and simplicity to set up for businesses has led to a huge rise in the use of digital wallets. According to IT service management company Marqeta, 75% of consumers are now embracing digital wallets to pay for their purchases, with 60% of people saying that they’d now feel comfortable leaving the house with just their phone and not their wallet. Virtual card payments are set to become the norm in 2023.
Consolidation of the fintech market
Research conducted by Fintech Capital has revealed that FinTech investment had slowed over 2022. According to the report, business formation in the fintech sector peaked in 2018, and over the last year, has declined by 80%. This could result in consolidation in the industry, which will ultimately strengthen the offering of larger fintech operations.
Increased focus on banks who are in demand for partnerships to service increasingly demanding portfolios
As the financial sector has evolved, traditional banks no longer have the resources to keep up with modern banking demands. An influx of banks seeking fintech partnerships is set for the forthcoming years. If traditional banks fail to keep up with the innovation of fintech’s they are bound to fall behind.