7 key financial trends & predictions for 2023

• Mambu, the leading SaaS cloud banking platform, has launched its partner predictions report for 2023.

• The report highlights the top finance trends predicted to help businesses thrive, amidst the current volatile macroeconomic environment.

Industry leaders from across fintech and financial services including AWS, Backbase, Deloitte, Google Cloud, and many more have predicted the trends set to shape the industry in the coming year. They examine the changes the industry must expect and explore how financial players should respond, to ensure they don’t get left behind.

In response to the economic downturn in the wake of the pandemic, Mambu’s global network of partners predicts seven trends that will shape the financial landscape in 2023.

Fernando Zandona, Chief Technology and Product Officer of Mambu said:

“The financial landscape has been extremely turbulent for some time. Economic uncertainty, big tech companies redefining the financial services space, fintechs looking to be more nimble and efficient, banks looking to reinvent themselves, there is a lot going on. But no matter what, it is going to be the end customers who decide which players win and continue in the market, and these customers will favour those who move fast and innovate."

Here are a few highlights of the report:

• Big tech in banking: Big tech moving into banking will force banks to drive digital transformation. Customers now have higher expectations for their digital experiences, so traditional banks need to partner with technology providers to offer more competitive banking services

• ESG and ethical impact finance: This shift will not only drive traditional banks towards more inclusive composable financial products and services, but also delivering with sustainability in mind for the benefit of their customers

• The future of payments: Rather than integrating their products into external platforms, banks should focus on creating their own interfaces and making them more engaging, more relevant, and more interesting in order to increase brand loyalty

Here is a closer look at what finance will look like in 2023.

1. Top SaaS Trends Driving Change in Digital Payments

"COVID-19 has driven the adoption of public cloud technology in ASEAN’s financial services sector, as more banks build digital services to keep pace with the growing Internet economy. '

2. Embedded Finance

"What emerges is that a bank’s success will depend more than ever on its ability to deliver digital transformation to meet both customer and governmental expectations, particularly around purpose, consumer duty and fair value."

3. Big Tech in Banking

"The key challenge is to make sure that the available budget is mainly invested on the differentiating 20% by ensuring that the foundational 80% is created in the most efficient way possible."

4. The Evolution of BaaS

"It is expected that more than 90% of all data generated with banks will be actionable in real time using machine learning by the end of 2025."

5. ESG and Ethical Impact Finance

"This transformation will not only drive traditional banks towards more inclusive composable financial products and services, but also doing it with sustainability in mind, alongside a strategic focus on ESG to drive competitive advantage."

6. The Rise of Contactless Spending and the Future of Payments

"To capitalize on this trend, banks will have to open up with an API strategy, determine how they want to differentiate themselves, find the right partners, build the journeys, and then iterate them."

7. Compliance and Regulation in 2023

"While typically thought of as a back-office cost and administrative burden, I posit that successfully navigating regulatory demands can be a source of significant business value and resiliency."

To see all the predictions, please visit the full report.