2022 FinTech Talent Review
The article discusses 10 predictions on how the fintech industry will evolve in the next few years, including increased adoption of digital payments, growth in the insurtech industry, more investment in fintech start-ups, and greater use of artificial intelligence and machine learning. Predictions include a focus on advanced security technologies, such as tokenization and encryption, and the use of AI and machine learning to improve products and services. Overall, we can expect to see continued growth and innovation in the fintech industry in the coming years. Below this article is a comprehensive list of top Fintech firms, information on their products and services, competitors, rough number on talent inflow and outflow, and location data. For more information on the FinTech industry, talent themes, or full access to the data below, feel free to email Willard Powell’s President, david.mcinnis@willardpowell.com.
The fintech industry has seen tremendous growth in recent years, and this is expected to continue in 2023 and beyond. Here are 10 predictions on how the fintech industry will evolve in the next few years:
Increased adoption of digital payments: With more consumers turning to digital payments in the wake of the COVID-19 pandemic, we can expect to see even more widespread adoption of digital payments in 2023. One of the firms leading in the space of digital payments is Square. Square’s technology platform allows businesses to accept payments through their mobile devices using a variety of payment methods including credit cards, debit cards, and ACH payments. They also offer a variety of other services such as point of sale systems, payroll, and lending. They also have a Cash App, a mobile app that allows users to make peer-to-peer payments and purchase Bitcoin. To continue their evolution in this space, Square will need to invest in advanced security technologies such as tokenization, encryption, and 3D Secure protocols to ensure payment data is protected. They will also need to develop innovative features such as QR code payments and contactless payments to make the payment process more seamless for customers.
Growth of the insurtech industry: The insurtech industry has been growing rapidly in recent years, and this is expected to continue in 2023. One of the firms leading in the insurtech space is Lemonade. Their technology platform utilizes AI and behavioral economics to make the insurance process more efficient and transparent for customers. This includes providing instant quotes, instant coverage and instant payouts for claims. To continue their evolution, Lemonade will need to invest in more advanced AI technologies such as natural language processing and computer vision to automate the claims process and also need to explore new use cases for the technology such as usage-based insurance and predictive analytics.
More investment in fintech start-ups: With the fintech industry continuing to grow, we can expect to see more venture capital firms and other investors putting money into fintech start-ups. A firm that is leading in this space is Stripe. Stripe is a technology platform that enables businesses to accept payments online and in mobile apps using a variety of payment methods including credit cards, debit cards, and ACH payments. It also provides a suite of tools for fraud detection and prevention, tax calculation, and subscriptions management. Stripe uses a variety of technologies and standards to ensure security, such as tokenization, encryption, and 3D Secure protocols. To continue their evolution in this space, Stripe will need to invest in more advanced security technologies, such as machine learning-based fraud detection, and also need to develop new features to make the payment process more seamless for the customers, such as integrating with other financial services providers and enabling recurring payments.
Greater use of artificial intelligence and machine learning: As technology continues to advance, we can expect to see more companies using artificial intelligence and machine learning to improve their products and services. A firm that is leading in this space is Nubank. Nubank uses machine learning to analyze the financial behavior of its customers and to offer personalized financial products, such as credit cards and personal loans. They also use machine learning to detect and prevent fraud. To continue their evolution, Nubank will need to invest in more advanced AI technologies such as deep learning and reinforcement learning to offer more personalized financial products, and also need to explore new use cases for the technology such as financial forecasting and anomaly detection.
Growth of the robo-advisory market: Robo-advisory platforms have been growing in popularity in recent years, and this trend is expected to continue in 2023. A firm that is leading in this space is Betterment. Betterment uses robo-advisory technology to provide personalized investment advice to customers. It uses algorithms based on modern portfolio theory and Monte Carlo simulations to create and manage portfolios based on each customer’s risk tolerance and financial goals. To continue their evolution, Betterment will need to invest in more advanced algorithms such as natural language processing and computer vision to enable customers to communicate with the robo-advisory service in a more natural way and also need to develop new features to make the robo-advisory service more personalized for the customers, such as integrating with other financial services providers.
More regulatory scrutiny: As the fintech industry continues to grow, we can expect to see more regulatory scrutiny from governments around the world. A firm that is leading in this space is Chainalysis. Chainalysis is a blockchain analysis company that helps financial institutions and government agencies to detect and prevent money laundering and other financial crimes. Their technology platform provides real-time visibility into cryptocurrency transactions and enables compliance with laws and regulations. To continue their evolution, Chainalysis will need to invest in more advanced blockchain analysis technologies, such as transaction clustering, and also need to develop new features to better track and prevent financial crimes, such as integrating with other financial intelligence agencies and developing new machine learning-based detection algorithms.
Greater use of blockchain technology: Blockchain technology is already being used in a variety of industries, and we can expect to see more companies in the fintech industry adopting this technology in 2023. A firm that is leading in this space is Ripple. Ripple’s technology platform uses blockchain technology to enable instant, secure, and low-cost global financial transactions of any size with no chargebacks. They use a consensus algorithm to validate transactions and provide a decentralized platform for global payments. To continue their evolution, Ripple will need to invest in more advanced blockchain technologies and also need to explore new use cases for the technology, such as smart contract-based lending and securitization.
More companies offering open banking services: Open banking allows customers to share their financial data with third-party providers, such as fintech companies, to access new products and services. A firm that is leading in this space is Plaid. Plaid’s technology platform enables fintech companies and other financial services providers to access users’ financial data from banks and other financial institutions. This allows them to provide more personalized products and services to customers. To continue their evolution, Plaid will need to invest in more advanced data security technologies, such as end-to-end encryption and multi-factor authentication, and also need to develop new features to make the open banking service more seamless for the customers, such as integrating with other financial services providers and enabling real-time data access.
Greater use of virtual and augmented reality in banking: Virtual and augmented reality technology is becoming more widely available, and we can expect to see more banks and other financial institutions using these technologies to improve customer experiences. A firm that is leading in this space is Varo Bank. Varo Bank uses augmented reality technology to create a virtual branch experience for customers. This allows customers to access banking services through their mobile devices and engage with virtual banking representatives in real-time. To continue their evolution, Varo Bank will need to invest in more advanced virtual and augmented reality technologies, such as natural language processing and computer vision, and also need to develop new features to make the virtual banking experience more personalized for the customers, such as providing virtual financial advisors and enabling virtual account opening.
The rise of Neobanks: Neobanks are digital-only banks that offer a wide range of banking services through mobile apps. They have been gaining popularity in recent years, and this trend is expected to continue in 2023. A firm that is leading in this space is Chime. Chime is a neobank that provides a mobile banking app that allows customers to open bank accounts, deposit checks, make payments, and track spending. They also offer an automatic savings program and fee-free access to over 24,000 ATMs. To continue their evolution, Chime will need to invest in more advanced mobile banking technologies, such as biometric authentication, and also need to develop new features to make the mobile banking experience more personalized for the customers, such as providing financial advice and enabling real-time account opening.
The fintech industry is expected to continue to evolve in 2023 and beyond, with more adoption of digital payments, increased competition and innovation in the insurtech industry, more investment in fintech start-ups, greater use of artificial intelligence and machine learning, growth of the robo-advisory market, more regulatory scrutiny, greater use of blockchain.
For more information on the FinTech industry, talent themes, or full access to the data below, email Willard Powell’s President, david.mcinnis@willardpowell.com.