Four major digital banking trends to watch out for in 2023

What goes up must come down – an adage fintechs know only too well right now, as startups across the sector grapple with funding following breakneck growth. Like any economic crisis, however, the global headwinds bearing down on 2023 will herald in both winners and losers.

Legacy banks, for example, may weather the storm fairly comfortably, buoyed by rising interest rates and an opportunity to acquire from their younger, savvier fintech cousins. And crypto – on the down – is far from out. While digital currencies are hardly immune from a worldwide recession, recent scandals have provided a turning point for greater regulation and a possible legitimisation.

Here’s my take on the shifts that’ll take place in banking this year in what is arguably the toughest environment yet.

Farewell, fintech fairytales

With corporate-backed fintech investments plunging 92% in value in 2022 Q3, amid widespread layoffs, 2023 will continue to see a slowdown to fintech’s once-meteoric ascent. The longer the current mood of venture capitalist caution prevails, the greater the damage will be….