Top Fintech Industry Trends to Watch for in 2023

Christina Trampota
5 min readNov 21, 2022
Image: Unsplash

The past couple of years have been the most turbulent times in recent memory. That’s saying something for a generation that has overcome one of the worst recessions in human history.

Even before the world could recover from the tragic deaths of millions of people due to the pandemic, the Russia-Ukraine war triggered a global supply chain crisis, a hunger crisis in the developing world, and a real threat of sucking the world into “another” global recession. Even the crypto world witnessed shock and awe as trillions worth of wealth were wiped out of the market.

As tragic as the circumstances are, they offer new opportunities for the world and shift the ground beneath us. The pandemic made work from home the new normal rather than a nice-to-have perk. The threat of a looming recession is compelling economies traditionally prone to knee-jerk reactions to free trade agreements into doubling down on them. Businesses, governments, communities, non-profit organizations, and individuals are now increasingly open to digital innovation and accepting its benefits, especially in finance. Here are 3 areas in finance that will witness a tremendous transformation in the coming year.

Embedded Finance
Embedded Finance refers to the integration of banking services into non-banking products, services, and platforms, ultimately making financial products and services more accessible to consumers. A classic example is the co-branded credit cards offered by retailers like Costco in partnership with financial institutions, or the payment plans by any e-commerce or delivery service for food, groceries, etc.

In recent years, the emergence of open banking and digital innovation have together revolutionized embedded finance. Digital payments and e-wallets are the poster child of this emerging trend. Embedded finance solutions transform banking from a complex, conventional system into uber-convenient services and offer them as banking-as-a-service (BaaS) integrations. Loyalty programs, rewards, in-app payments, cashback, international money transfers, conversion of purchases into monthly payments, and a variety of other solutions are made possible on the foundation of BaaS using APIs.

Christina Trampota

Product and Growth for the Digital Customer by day, Professor at night. Global Innovation Leader, Startup Advisor, Public Speaker, Board Member