Pismo posted a poll on LinkedIn earlier this month asking our followers which fintech trends they thought would make the most significant impact on the financial services industry in 2023.
After one week, we had a draw in the poll answers. 41% of respondents said Embedded Finance would make the most waves in the industry this year, while another 41% opted for Decentralised Finance (DeFi) as the most important trend.
Some of our followers chose other emerging technologies: 12% of respondents pointed Request to Pay (RtP) as the most impactful trend, and 6% believed Variable Recurring Payments (VRPs) would be more critical this year.
Financial services for non-financial companies
The demand for embedded finance has increased significantly in the last few years and will continue to grow in 2023. 82% of banks agree that it will be an essential revenue stream.
Embedded finance allows non-financial companies access the broader fintech and banking ecosystem without bearing the development and compliance costs involved in building their own financial products.
Banking as a service (BaaS) is the most prominent form of embedded finance. It enables companies to provide financial services without complex banking systems or a central bank license.
Pismo offers the infrastructure needed to build fantastic embedded financial products. Read our explainer to find out how we help fintechs boost their business by providing banking and payment services to their customers.
Blockchain for financial services
The DeFi sector has had exponential growth in the past few years. Although it may not emerge yet as a genuine alternative to established methods in the financial sector, it has the potential to be explored as a new revenue channel.
DeFi aims to cut out centralised services by providing financial products based on blockchain technology. It removes intermediaries and replaces them with automated protocols. Hence, DeFi enables innovative services that might not be viable on traditional banking infrastructure, including cryptocurrency and token-based transactions.
Learn more about a decentralised future in financial services by downloading Pismo’s e-book: “Dystopia or utopia? The future of global cryptocurrency”.
