4 Financial Technology Trends in 2023

 

As a marketer, I make sure that I'm updated in terms of Financial Technology Trends to make sure that we aren’t missing out on important things to know. With this, I share the FinTech trends this year.

GROWTH OF DIGITAL BANKS

The Bangko Sentral ng Pilipinas (BSP) believes that the emergence of digital banks has the potential to fundamentally alter how traditional brick-and-mortar banks provide financial products and services. When attempting to enhance financial and digital inclusion throughout the nation, the Philippine government has given e-commerce and electronic payment systems top priority.

Digital banks don't have physical branches, sub-branches, or branch-lite units; instead, they offer end-to-end financial products and services via a digital platform and/or electronic channels. It enables safe transactions anytime, anywhere. It also enables fast circulation of digital currency, cultivate users' payment habits, optimize payment settings and promote economic development.



RISE OF ZERO TRUST ARCHITECTURE

An architecture built on the idea that nothing can be trusted is a zero-trust architecture. According to this way of thinking, no user, device, or application trying to communicate with your architecture can be regarded as secure. The user security configuration needs to be continuously verified before granting access to an application or data.


FEDERATED LEARNING

Federated learning gives you the ability to unlock data to feed new AI applications by training AI models without letting anyone see or access your data. Federated learning is a strong method for training machine learning data without ever having to exchange data whilst retaining anonymity.

With the help of big data, federated learning will have a lean curve in understanding the data presented. Federated learning is critical in supporting privacy-sensitive data applications with distributed training data. In theory, it appears to be a perfect plan for addressing issues with traditional machine learning models that use data from a single central server or location.

CRYPTO MOVES TOWARDS THE MAINSTREAM

Cryptocurrency is a type of digital asset that was created using cryptographic techniques to allow people to buy, sell, or trade them securely. Unlike traditional fiat currencies that are controlled by national governments, cryptocurrencies can exist without the intervention of a monetary authority such as a central bank.

Cryptocurrency transactions are increasing in the Philippines as more people use digital currencies for payments and remittances. The value of cryptocurrency transactions increased 410% between 2019 and 2020. Increased cryptocurrency adoption can also be seen in the traditional finance sector's growing acceptance.