Top 5 Most Popular Fintech Solutions For Banks In 2023
Fintech solutions are software applications that use technology to provide financial services or enhance financial processes. Fintech solutions can offer various benefits for banks, such as cost reduction, efficiency improvement, …. The demand for fintech solutions in the banking and financial services sector has grown rapidly in recent years.
According to Statista, the global market size for fintech solutions in this sector was estimated at 0.28 billion U.S. dollars in 2018 and is projected to reach 22.5 billion U.S. dollars by 2026. In this article, we will explore the top five most popular fintech solutions for banks in 2023 and how they can help banks achieve their goals and solve their problems.
Digital Banking Platform
What it is?
A digital banking platform is a software solution that enables banks to offer a seamless and personalized customer experience across multiple channels, such as web, mobile, and social media.
A digital banking platform also allows banks to integrate with third-party services and data sources, such as payment providers, credit bureaus, and analytics tools. A digital banking platform can support various banking functions, such as account opening, transaction processing, lending, wealth management, and customer service.
Why it is popular?
A digital banking platform is popular because it helps banks to meet the changing expectations and needs of their customers, who demand convenience, speed, security, and personalization.
A digital banking platform also helps banks to reduce operational costs, increase revenue opportunities, enhance customer loyalty, and comply with regulatory requirements. According to a report by Gartner, the global spending on digital banking platforms will reach $14.4 billion by 2023, growing at a compound annual growth rate (CAGR) of 12.9%.
=> Watch more: 10 Most Popular Digital Banking Platforms In 2023
Data Analytics Platform
What it is?
A data analytics platform is a software solution that enables banks to collect, store, analyze, and visualize data from various sources, such as internal systems, external databases, social media, and sensors.
A data analytics platform can use advanced techniques such as artificial intelligence (AI), machine learning (ML), and natural language processing (NLP) to generate insights and predictions that can help banks make better decisions and optimize their performance.
Why it is popular?
A data analytics platform is popular because it helps banks to leverage the power of data to gain a competitive edge in the market. A data analytics platform can help banks to understand their customers’ behavior, preferences, and needs; identify new opportunities and risks; improve their products and services; enhance their operational efficiency and effectiveness, and comply with regulatory standards.
According to a report by IDC, the worldwide revenues for big data and business analytics solutions will reach $274.3 billion by 2022, growing at a CAGR of 13.2%.
Cybersecurity Platform
What it is?
A cybersecurity platform is a software solution that protects banks from cyber threats and attacks that can compromise their data, systems, networks, and reputation.
A cybersecurity platform can provide various capabilities such as threat detection and prevention, incident response and recovery, vulnerability management, identity and access management, encryption and key management, compliance management, and security awareness training.
Why it is popular?
A cybersecurity platform is popular because it helps banks to safeguard their assets and customers from the increasing frequency and sophistication of cyberattacks.
A cybersecurity platform can help banks to prevent data breaches and frauds; reduce financial losses and reputational damages; maintain customer trust and confidence; and comply with regulatory obligations. According to a report by MarketsandMarkets, the global cybersecurity market size will grow from $167.1 billion in 2020 to $248.3 billion by 2023, at a CAGR of 10.4%.
Open Banking Platform
What it is?
An open banking platform is a software solution that enables banks to share their data and services with third-party providers (TPPs) through secure application programming interfaces (APIs). An open banking platform also allows banks to access the data and services of TPPs through APIs.
An open banking platform can facilitate various use cases such as account aggregation, payment initiation, product comparison, personal finance management, credit scoring, and loyalty programs.
Why it is popular?
An open banking platform is popular because it helps banks to embrace the new paradigm of open finance that is driven by customer demand, technological innovation, and regulatory reform.
An open banking platform can help banks to offer more choice and value to their customers; create new revenue streams and business models; enhance their innovation capabilities and partnerships; and comply with open banking standards such as PSD2 in Europe or CDR in Australia. According to a report by Juniper Research, the number of open banking users will reach 40 million in 2021 globally.
Robotic Process Automation Platform
What it is?
A robotic process automation (RPA) platform is a software solution that enables banks to automate repetitive and rule-based tasks that are performed by human workers using software robots or bots.
A RPA platform can also use AI and ML to automate more complex tasks that require cognitive skills such as understanding natural language or making decisions. A RPA platform can automate various banking processes such as account opening, KYC verification, loan processing, fraud detection, and report generation.
Why it is popular?
A RPA platform is popular because it helps banks to improve their productivity, quality, and compliance. A RPA platform can help banks to reduce human errors and costs; increase speed and accuracy; enhance customer satisfaction and retention; and comply with regulatory policies and procedures.
According to a report by Gartner, the global RPA software revenue will reach $1.89 billion in 2021, growing at a CAGR of 19.5%.
=> See More: Fintech Digital And The Future Of Financial Services
Conclusion
Fintech solutions for banks are transforming the banking industry by providing new ways to deliver value to customers, optimize processes, and generate growth. Banks that adopt fintech solutions can gain a competitive advantage in the market and achieve their strategic objectives.
If you are looking for a reliable partner to help you implement fintech solutions for your bank, contact us today. We are SmartOSC, a leading digital transformation agency that provides end-to-end fintech solutions and other financial institutions. We have the expertise, experience, and technology to help you succeed in the digital era. Contact us now and let us know how we can help you.
