Roman Katerinchik is the founder of Artjoker and, consequently, a decision maker in one of the major software agencies in Ukraine possessing firsthand insights into the fintech market dynamics, which he shares in this overview.
Ukraine has been putting its fintech market players’ names on the map in a major way over the recent years. In 2019, MyCredit got financed by the TAC group, listed as the TOP-10 venture deals in Ukraine according to Inventure, only to become one of the first Ukraine-based financial services to hit the Southeast Asia market under the OnCredit brand.
It is safe to say that Ukraine is certainly among the leading destinations that confidently push the fintech industry trends. The country’s biggest neobanks prove this point in practice, outrunning many European providers all across the board.
I willingly discussed the market’s overall dynamics with fintech investors, partners, and colleagues to now be able to outline in what direction exactly the niche is being pushed.
Namely, I’ve been able to point out the most relevant fintech trends in 2023 backed up by expert opinion, firsthand experience, and real business insights. Let’s take a look.
#1. Buy Now, Pay Later
86% of millennials would rather buy a product now and pay for it later if they get the chance. Increasingly more people are eager to pay in installments each year.
And the number of services in the market that provide such opportunities expands accordingly. If we talk about the unicorns of the niche that have successfully caught up with this and other fintech lending trends, we should mention the US Affirm and European Klarna.
After a boom in 2021 and a strong recession in 2022, market players will be actively looking for their place, as well as a business model in the market in 2023. The demand is obvious, and the market is too big not to try to get their share of the pie.
#2. Real time Payments
An overwhelming majority of people today live in-between salaries, with employers literally crediting their employees by paying “the next month”. This is why people are also eager to get their money as soon as possible, here and now, forming one of the key fintech technology trends.
Flexible fintech providers that are able to offer advance payments continue growing in demand. The advance funds market is quite big already, but it is expected to become the hottest around. So the ability to add one’s card to the scheduled payments system and get advance payments on request is among the top required in the niche.
#3. Embedded finance and the IoT
More and more everyday appliances are becoming smart and functional. Everything from vacuum cleaners to fridges and microwaves is getting built-in voice assistants and, most importantly, online payment modules. Fintech solutions will definitely continue to seep into people’s everyday lives through IoT and smart devices.
#4. Dawn of personalized neobanks
Mobile banks emphasize targeting and continue to become more personalized in line with one’s target audience of users. This fintech trend gradually stamps out the traditional “one-for-all” banking approach where banks are centralized. Instead, banking services are to be made segmented, with separate providers or bank branches focusing on certain audiences (e.g., banks for B2B companies, banks for the agrarian sector, for IT, etc.).
#5. Traditional banks fighting it’s legacy
One of the more obvious fintech global trends is a major shift in demand towards fast and flexible neobanks. The gap between up-to-date providers and traditional banks is growing each day, people eagerly catch up, and we may already witness the resulting popularity.
In order to make it amongst the competition, traditional banks will also have to expand functionalities of interacting with regulatory authorities, specialists, and clients alike. Either focus on the end consumer and adapt your business accordingly or suffer the consequences of being stamped out by tech-driven neobanks.
#6. Digital currencies and stablecoins
Digital payments and crypto have remained the fastest-emerging new trends in fintech on a global level. In some countries, digital currency is seriously considered by the national-level authorities as a working traceable, flexible alternative to fiat money. This says enough in favor of the demand for stable cryptos.
#7. AI around every corner
Artificial Intelligence will certainly keep helping fintech providers become more responsive, personalized, and automated. In terms of major fintech’s future trends, organizations are to increasingly acquire such AI-powered features as banking scoring, marketing communications (to advertise services in a more personalized manner), and lots of dynamic personalization capacities.
#8. Private ecosystems going public
Banking and finance decision-makers are increasingly bringing up the notion of the ultimate collaboration where even banking structures would share data with each other. Providers such as Kaspi Bank put this tendency on the map of the main fintech banking trends by allowing people to store, transfer, and borrow money while getting loyalty points in the process.
#9. Retail investments
In the current environment of highly-available financial opportunities, people seriously lack simple means of profitably investing the money they hold. Bank deposit interests increasingly decline, and one cannot simply go and start investing in the global funds market shares.
There are really no clear fintech investment trends formed in Ukraine as of yet due to the underdeveloped investment market, but things are getting there gradually and players just won’t miss out on becoming the niche pioneers.
The global area of financial technologies is certainly a fast-paced one, leaving no chance to legacy-powered providers and out-of-date titles. When it comes to fintech 2023 trends, all is driven by innovation, improved flexibility of service, and increased individual focus on the end consumer. This is why banks and other financial organizations are equipping systems with personalization, intelligence, and automation features.
Hi there, I hope you enjoyed this brief overview – my name is Katerinchik Roman, I run artjoker.net, and over a decade built a bunch of fintech products. I have a chance not only to live and work in the heat of the digital finance market dynamics but also to provide its players with tailored software. Let me know whether you share my view of the main fintech trends in 2023.