Despite the adverse market environment, fintech companies continue to gain strength and importance for customers and the economy. What trends will shape the industry in the coming year?
The past year was an extremely turbulent one in several respects. Fintech companies in particular suffered greatly from the difficult market environment and resulting turmoil, with several high-flyers brought down to earth.
Although 2023 will continue to be challenging, the fintech industry continues to evolve with market trends, and innovation in the fintech sector will continue to drive change in traditional financial services.
What trends and developments is the fintech industry talking about for the new year?
RegTech a Profit Driver
Few sectors are as heavily regulated as the financial industry. FTX’s spectacular collapse and alleged fraud will lead to more regulation in the crypto space globally. At the same time, as the crypto universe becomes ever more entwined with traditional finance, the latter will also face tighter regulations in the future when it comes to digital asset services.
RegTech helps banks and financial services firms streamline nearly every aspect of the compliance process with solutions that help to efficiently identify and mitigate risks. Since many financial institutions do not have the staff or the technical expertise to handle regulatory hurdles in the crypto space without outside help, they will seek partnerships with third parties to create an efficient compliance process when it comes to digital assets.