By Jaideep Singh, CEO, FlyFin
With the new year comes the opportunity to peer into the crystal ball and get a handle on what might happen in 2023. From the moment the tech industry set its sights on transforming the financial sector, business has been a ‘boomin’. All signs point to new ways technology is changing the financial industry as well as continued growth for some of the biggest fintech trends. Here are a few things I believe will unfold in the fintech landscape.
Social media and personal finance
As Gen Z and millennial creators continue connecting in more ways via social media, they’re increasingly leveraging platforms like Instagram, YouTube and TikTok. They’ve embraced online communities like Telegram and Discord to increase their financial literacy with money-saving tips and personal finance advice on everything from taxes to investing. Financial advice was once something that many people, especially young people, were once barred from because it came at the cost of paying an expert.
One Wall Street Journal survey found that 18% of millennials prefer to get their information on investing from social media. One recent example is FlyFin‘s community of freelancers and self-employed people sharing tax advice on Instagram. Launched last year, it attracted more than 50K followers in less than three months, many of whom actively participate in sharing information and discussing financial tips.
Mobile banking and financial services
More people will use mobile apps for banking and other financial services in 2023 than ever before, as the convenience of the smartphone makes it more and more a tool for everything. The use of mobile apps for various financial tasks is projected to grow from 1.8 billion in 2019 to 2.2 billion in 2023, according to a Juniper Research study. There are already 3.5 billion active mobile banking users worldwide, and that number, says Business Insider Intelligence, is expected to grow to 6.6 billion by 2025.
AI in finance
AI has had a role in finance for some time, but it’s become especially important in automating financial tasks in consumer apps, like personal accounting and taxes. Business Insider expects the number of consumers who use AI-powered financial apps to grow to 92 million in 2023, up from 33 million in 2019.
Automation in tax preparation
The total number of tax preparers and CPAs supported by the market will likely decline sharply in 2023 and over the next decade, as AI-supported tax preparation technology becomes more efficient, precise and widely adopted. This decline is already happening as Xero and Expensify for businesses integrate expense management with accounting software and apply it to tax management. From automatic deduction tracking to hyper-accurate tax calculators, A.I. is revolutionizing both corporations’ and the average taxpayer’s process.
Web 3.0 drives more intelligent, more intuitive apps
Web 3.0, also known as the “Semantic Web,” is set to bring major advancements in how we interact with information and technology on the internet. The semantic web creates a more interconnected and intelligent internet through the use of machine-readable data, artificial intelligence and other emerging technologies.
This year, Web 3.0 will enable the development of more intelligent and intuitive apps that can better understand and process the meaning of data. This advance will lead to improved natural language processing (NLP), enhanced knowledge representation, and more sophisticated decision-making capabilities. Financial transactions will occur more often without intermediaries and with greater transparency. Peer-to-peer users will have more control over their own financial transactions and stronger abilities to ensure security.
The future of finance is looking brighter than ever with the advancements in technology set to transform the financial sector in 2023. From social media becoming a hub for financial literacy to mobile banking apps seeing a surge in usage, fintech trends are changing how we manage our finances. AI will continue to play a significant role in automating financial tasks, while Web 3.0 will drive more intuitive apps that can understand and process data more intelligently. With so much innovation happening, it’s an exciting time to be a part of the financial world. Get ready for a wild ride in 2023!
