Top Financial Services Technology Trends in 2023!

Apoorv Gehlot
10 min readSep 5, 2023

Technological disruptions have revolutionized how different industries communicate with their target audiences. All the businesses have raised their standards to meet the evolved demand of their customers. The finance industry is also not untouched by this change, and how customers handle their money has transformed.

Do you also want to learn about the significant changes shaping your business’s future in the finance industry? You are in the right place, as here you can explore technological trends in financial services.

Financial technology has evolved over the years to meet the advancement people are adopting to manage their finances.

Here through this blog, we will be talking about some of the top fintech trends that you can consider adapting to sustain the growth of your business.

  • Investing in the right financial services technology trends can help your business to grow in today’s Fintech industry.
  • Open banking and embedded finance are two significant trends that can lead you in the Fintech industry by enhancing your customer experience, expanding your revenue streams, and other ways.
  • AI and ML are the often-used names when discussing the technologies revolutionizing the Fintech industry. Leveraging these can make your business innovative and add multiple perks.
  • Adopting the technology trends in financial services that are agile and adaptive banking, your business can grow by learning from your failures or past experiences. You will be able to match up with the changing demand of your customers in this tech-driven era.
  • RPA and hyper-automated banking are another technology trend you can invest in to leverage the power of bots and make your repetitive work accurate.

Top 5 Technology Trends in Financial Services Are:

Decentralized Finance (DeFi) Integration

It is a transformative trend that is changing the functioning of financial services. It includes integrating the principles and blockchain technology to revolutionize traditional processes. DeFi Integration aims to create a financial ecosystem that operates without intermediaries. It also offers transparency and gives users greater control over their financial activities.

As per the reports, the DeFi market is anticipated to thrive at 46.80% between 2023 and 2032. The market size will be reaching around USD 446.43 Billion by the end of the year 2032.

Here, we have mentioned some of the major perks that you can gain by adopting this financial services technology trend for your business:

  • By leveraging this technology trend, you can eliminate the traditional financial intermediaries such as banks, brokers and others. You can have direct peer-to-peer interaction, reducing the cost and time consumed associated with the middleman.
  • Another perk of investing in these financial trends is that your users will have complete ownership and control over their financial assets and data. DeFi reduces the risk of data breaches and unauthorized access.

Open Banking and Embedded Finance

First on the list are the two innovative trends that can transform your business in the financial industry. Although the trend of open banking is not new, as it has existed for some time, its potential has been recognized by the industry in recent times.

The concept of open banking will boost your digital experiences and will enable sharing of financial information between banks and your organization securely. Open banking can offer countless opportunities to your business in the finance industry, and it is the reason why this sector is currently on the rise.

As per the report, the global open banking market had a value of USD 16.14 billion in 2021. This value is anticipated to grow at a CAGR of 26.8% by 2030.

Benefits of Open Banking:

  • By leveraging the concepts of open banking, you will be able to enhance your customer experience. It can allow your customer to access a broader range of financial products and services at a centralized platform.
  • Open banking is one of the technology trends in banking and financial services that can enhance financial inclusion. It can offer the best financial services necessary to the population which is underserved and unbanked. So ultimately you will be able to reach a wide range of customers.
  • It also improves the data-driven insights by having consented access to the customer data. Further, the data can be used by you to understand the financial behavior and preferences of your customers. By doing so, you will be able to offer a more tailored version of your services to your target customers.

At this point, it will not be wrong to say that when enterprise solutions are molded to adopt the concepts of open banking financial trends, it can promote your business growth. It will enhance your customer experience and comply with the existing rules and regulations of the industry.

Yet, to make this financial journey even better for your customer, open banking matches up with embedded finance. Now the concept of embedded finance revolves around the integration of your financial services into non-financial platforms.

These platforms can be e-commerce platforms, mobile wallets or ride-sharing apps, etc. It is one of the best financial services technology trends that will allow you to offer financial services seamlessly to your existing platforms. It will also enhance your customer engagement and value proposition.

Benefits of Embedded Finance:

  • It helps in expanding revenue streams for your business as you will be able to offer your financial services and products as they can be embedded in the offerings of non-financial companies. It will open up new revenue streams and let you reach a wider customer base for your growth.
  • Embedded finance is one of the technology trends in the financial services industry that can increase your customer retention rate. It can be done by offering a wide range of services through embedded finance. It can also help in reducing the risk of losing your customers to your competitors.

The trend of open banking, when coupled with embedded finance, will certainly sustain your business growth in the financial industry. By choosing these technology trends in financial services, you will be promoting the digital transformation of your traditional finance services. These trends together can bring effective opportunities for your Fintech business and help you in enhancing your customer experience through different methods.

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Artificial Intelligence (AI) and Machine Learning (ML)

Moving further, we have the best technologies that are already revolutionizing the financial services industry as the technology trends in financial services. AI and ML are often used to represent the cutting-edge technological enhancement and innovation of any business. You can also use these to upgrade your position in the Fintech market, as AI is one of the fastest-growing sectors out there.

As supported by reports, the (AI) fintech market size is anticipated to reach USD 41.16 billion by 2030, growing at a CAGR of 16.5% till 2030.

Now why is artificial intelligence growing so fast in the Fintech industry? Is it due to the rise in demand for Fintech software development services or something else? Let’s find out. Well, AI can definitely enhance your software solutions, and AI chatbots can save you time and money.

Yes, you heard right; as per the reports using AI chatbots will save you 862 million hours, and the operational cost savings from using the chatbots will reach $7.3 billion globally by 2023. So now you know that adopting the trends driven by AI and ML can be a game changer for your business in the Fintech industry.

Not just the automation but with AI and ML, your business in the Fintech industry can gain much more, such as:

  • AL and ML can analyze the vast amount of relevant financial data and generate useful reports for strengthening your decision-making capabilities. You can easily go through the clean data that these next-gen technologies provide you and carve out the best predictions relevant to your business. It will help you in making informed and accurate decisions for your business growth.
  • Another perk of using AI and ML as your financial services technology trends in 2023 is that it enhances the personalization in service provision. With artificial intelligence and machine learning, you can assess your client’s personally identifiable information and improve your financial services, money management, cloud services and card services.

There is no secret about the fact that data is one of the most valuable commodities in this era that can lead to the success or failure of any business. Artificial intelligence and machine learning are the technologies aiming to assure that the data you use within your Fintech business is clean and relevant to what you need.

It is the reason why these next-gen financial trends are beating the traditional methods and will be emerging as one of the most important financial services trends in the coming time.

Agile and Adaptive Banking

One of the prominent financial services technology trends is agile and adaptive banking. It has grown over the entire Fintech industry in recent years and is gaining success in making your business competitive in this digital era. You do leverage digital transformation services to achieve speed and be tech-driven so that you can match up with the changing customer expectations.

By adopting the trend of agile and adaptive banking, you will be able to become a customer-centric and flexible business. With this trend, you will be able to respond to market changes very smoothly and can enhance your product or service delivery.

It is the reason why the research study on agile banking academics indicates that around 44% of Fintech organizations and 77% of banks are adopting agile methods to enhance their financial services. So, what makes agile and adaptive trends the savior of your business in the Fintech industry?

Well, the answer is simple this trend offers your business a product-centric approach that will let you cross different challenges in this industry.

Some of the hurdles that can be crossed using agile and adaptive technology trends in financial services are:

  • With the agile and adaptive banking trend, you will be able to overcome bureaucratic obstacles. It can be done by promoting decentralized decision-making and empowering your team so that they can make faster and more responsive choices.
  • It has become one of the best technology trends in the financial services industry as it helps in replacing the legacy system gradually. It adds more flexible and scalable solutions to your business to improve its efficiency. By leveraging the agile and adaptive financial trend, your reliance on outdated technology will be reduced.
  • Learning a new perspective on success by embracing failure can be one of the best ways to ensure your business growth amid this tough competition. With the agile methodologies, you will be encouraged to do different experiments and explore your failures. It lets you calculate the risks and explore new opportunities in a controlled environment.

Hyper-Automated Banking with Robotic Process Automation (RPA)

Another one on the list of technology trends in banking and financial services is hyper-automated banking with robotics process automation (RPA). It is one of those revolutionary trends that can streamline your various services by enhancing their efficiencies. RPA leverages financial software development services that include software robots or bots for automating repetitive tasks.

With the help of these bots, you can perform the tasks related to your financial operations with speed and accuracy. It will free up your professionals and let them focus on more complex and value-adding activities for your business growth in the Fintech industry.

Just like AI, ML, open banking and embedded finance, the financial industry has also been using hyper-automation for a long time. But in recent years, the global market of RPA and global automation is expected to grow. As per reports, in 2022, this market was valued at $908.13 million, but now it is anticipated to reach $4979.6 million by 2029 at a CAGR of 27.52%.

Benefits of Hyper-Automated Banking with RPA:

  • By leveraging the RPA boots, you will be able to increase the efficiency of your work. The RPA bots can easily execute the tasks with accuracy at any time that you want without fatigue. It will lead to increased operation efficiency of your business. All your routine tasks that include report generation, data entry, reconciliation and others, can be completed smoothly.
  • RPA also offers you scalability as it allows you to deploy the bots in different operational wings in your business. They can be flexible in adapting to the changing demand of your customers and then scale up your operations accordingly.
  • By adopting the concept of these financial services technology trends, you can gain a competitive advantage in the market. You will be able to deliver the best services to your clients by understanding their needs. It will also reduce your operational costs and let you stay ahead with your quality delivery.
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Matellio Can Be Your Ladder Connecting You with These Technology Trends in Financial Services!

After reviewing the tech trends above, you will be sure that you need a partner or a reliable technology consulting service provider to understand the current scenario of the Fintech industry. You need to align these trends with your existing business strategy to come up with a path that can sustain your business growth for the long term.

Matellio can vividly understand your business objectives and has experts on these technology trends in financial services. We can help you not just grow but also retain your top position in the market within this evolving financial services landscape.

You can choose us to be your partner as we are reliable in offering the necessary expertise and solutions to your business. With our expert experience, you will be able to streamline your operations effectively.

If you have any confusion related to our services or want to explore more about these trends and their use in your business, feel free to contact our expert by filling out this form.

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Apoorv Gehlot

Founder & Board Member at Matellio — Technology enthusiast with enterprise solution design & development expertise