TOP 3 FINTECH DISRUPTIONS TO WATCH OUT FOR 2023

Last year was difficult for businesses due to a variety of reasons. Post-pandemic complexities, war-induced energy crises, cryptocurrency market crashes, high inflation, and soaring interest rates, have made businesses around the world accustomed to adapting to new circumstances

However, despite all of these challenges, the fintech market has grown steadily, providing businesses with ways to stay ahead of the curve and provide simpler, more accessible financial services.

1. The cost of living crisis

In 2023, fintechs will need to keep supporting their clients by helping them thrive during these hard financial times and the cost-of-living crisis.

Fintechs have always been at the forefront of innovation and are ideally positioned to help customers thrive in hard times by giving them more awareness and control of their spending.

Both innovative services and the use of payment data are assisting fintechs in understanding changing customer needs and new behavioural patterns.

Consumers are looking for innovative new ways to control their finances and are using fintech to do this. Prepaid cards, for example, can be used to limit the amount of money spent, and digital wallets can be used to set rules against specific spending pots.

2. The rise of invoice financing

Every business understands that there can sometimes be a large gap between revenue and cash flow, especially when your customers demand longer payment terms and pay at the last minute. By borrowing against the invoice value, invoice financing can help you bridge that gap.?

Invoice financing is a short-term loan against invoices in which your company borrows money against amounts owed on invoices issued to customers. These trade receivables are then used to provide collateral.

Invoice financing is widely used in the construction, retail, transportation, and consumer goods industries. Invoice finance is one of many business financing options because it allows you to receive cash immediately rather than waiting for your customers to pay you in full. As a result, working capital is preserved, and problems with the company's credit and cash flow are avoided.?

It can then be used to finance slow-paying accounts receivable or meet short-term liquidity requirements. As cash flow continues to dictate the chances of success for many businesses, invoice financing will play a significant role in the fintech market of 2023.

3. The Rise of AI

Artificial intelligence has long been a necessary tool for fintech companies. Robotic process automation (RPA) speeds up and improves the accuracy of report writing, financial data management, and other operations (RPA). Employee reduction is made possible by removing human intervention from routine tasks.

In order to work in a particular industry, financial institutions are implementing adaptive artificial intelligence. It self-adapts to the conditions displayed by gathering information about previous human-machine interaction experiences. According to Gartner, companies that use adaptive AI will have a 25% advantage over competitors that use traditional, earlier AI models by 2026.?

As productivity rises and organizations gain deeper insights from vast amounts of data, RPA and AI are quickly altering the way businesses run. Know-it assists businesses in making sense of their sales ledger, getting to know their customers better, and automating the credit control process from start to finish. This allows businesses to easily mitigate credit risk, reduce debtor days, and increase cash flow.

Conclusion -?

Investing in emerging technologies will be key to surviving in the ever-changing financial landscape. If you need help to leverage technology in these hard times visit our website.