FinTech Trends to Watch Out in 2023 – What’s on the Horizon?

FinTech Trends to Watch Out in 2023 – What’s on the Horizon?

‍With the rise of the digital world and the increasing adoption of FinTech, it is no surprise why this industry continues to grow at a rapid rate. The global financial crisis of 2008 resulted in a widespread recession throughout Europe that had ripple effects on many industries. With banks tightening their lending standards, consumers turned to alternative financial services providers such as fintech companies to help them manage their money responsibly. These new players have started to take over traditional banking institutions and are now creating new products and services that cater to an increasingly digital population. So, we can see that fintech software development is in demand so far. And in this blog post, we will discuss the top five FinTech trends you should look out for in 2023.

Blockchain Technology

With more than 10 million blockchain-based companies by 2021, the use of this technology will increase in the financial sector. The blockchain is basically a decentralized public ledger that is used to store data chronologically. It is decentralized because it is not kept by any single entity such as a bank but instead by a network of computers (‘nodes’). This technology is significant because it uses a decentralized platform that is not controlled by a single entity and is a secure way to store data.

The first use of blockchain technology was the rapid transfer of digital assets such as stocks and bonds. The technology is now being used in the financial sector to create new products that make the process more efficient. The government of Dubai has announced that it will implement blockchain technology for government functions. It is likely that many more financial institutions will follow this trend.

AI-Based Payments and Advice

Because of the increasing level of automation, some financial institutions are now offering customers the option to pay with artificial intelligence (AI)-enabled payments. While there are many companies that offer this feature, it is particularly popular among consumers who are looking for more personalized services. With the adoption of AI and machine learning, financial institutions can offer personalized advice that can help customers make more informed financial decisions. 

With online banking, consumers can now access their accounts, send and receive payments, and get advice on investments and insurance products through natural language processing. Financial institutions are also using AI to create digital personal assistants that can answer questions, monitor spending habits, and recommend products based on a customer’s preferences. For example, customers can ask their banks for a travel insurance recommendation based on their travel plans. 

AI can also be used to automate certain processes and improve customer service. For example, AI is already used to process a large number of customer requests for access to bank accounts. Beyond this, it is also used to improve risk management through smart banking, to identify potential fraud or money laundering activity, and to help customers understand their financial products and advice better than humans can.

Digital Exchange and Trading Platforms

As the internet becomes more central to people’s everyday lives and more financial services move online, the demand for digital exchange platforms will increase significantly. For example, if a user wants to transfer money from one country to another, there are many traditional options. However, this process can be tedious and time-consuming. 

Instead, some financial institutions have introduced an app that lets users enter the recipient’s details and the app will take care of the rest. The app makes it easier for people to transact and is likely to become more common because of the growing adoption of FinTech. As more financial services move online, users will need digital platforms that make it easy to access and manage their finances. Therefore, it is likely that the demand for digital exchange platforms will increase. Furthermore, blockchain technology is also being used in digital exchange platforms, which can ensure the security of transaction records.

Peer-to-Peer Finance and Credit

The rise of peer-to-peer (P2P) finance and credit will also be a prominent trend in 2023. There are many fintech companies that are providing this service. Some of these companies allow users to borrow money from other users without any financial security. However, this type of credit is becoming especially popular with millennials who would previously consider it a risky option. 

The first use of P2P finance and credit was when friends and family members lent money to each other. However, the technology is now being used by a number of financial institutions including banks, credit unions, and even non-financial companies. 

P2P finance is convenient because it does not require a long application process or collateral. In fact, some P2P companies do not even require identification. For example, the owner of a small business can apply for P2P credit to finance the expansion of his or her business. Credit unions have been offering P2P finance and credit for decades. In fact, they are the largest financial institution to offer this service. 

Businesses can apply for a loan from a credit union and the loan will be granted based on a member’s financial history and creditworthiness. Even non-financial companies are starting to offer P2P credit and finance to help their customers manage their finances better.

Hyperlocal Financial Services

With the rise of digitalization and the increasing adoption of fintech, hyperlocal financial services will also gain popularity. For example, neighborhood banks are a type of hyperlocal financial service. These banks are usually found in rural areas and focus on providing financial services to the local community. However, there is a growing trend towards urbanization and consumers are moving to cities where these banks are especially useful. Consumer reviews are a useful way to help users make better financial decisions. Therefore, it is likely that more financial institutions will start using this technology to help customers make the right decisions. However, it is worth noting that not all financial institutions are using this technology. It is beneficial for consumers to research their financial products and compare the different offers available in the market before making a final decision.

Bottom line

In short, the financial sector will experience significant disruption in 2023. Blockchain technology will continue to gain popularity and is likely to be implemented in many financial services. AI will also be used to provide enhanced payment services and improve customer service. On top of that, peer-to-peer finance and credit will also become more popular as financial institutions turn to digital technologies to improve the customer experience. If you are engaged in this area, or you are thinking about investing in a fintech solution, make sure you follow the latest trends in this area!

Are You Making Common E-Commerce Mistakes?

Are You Making Common E-Commerce Mistakes?

Are you a new e-commerce entrepreneur who wants to get off to a good start? Every year, thousands of hard-working adults supplement their income by opening their own online stores. Some succeed, and others don’t. What are the main reasons the unsuccessful ones have trouble getting their businesses up and running? On the other side of the equation, what do the winners do right? The question is as old as business itself, and in the digital age, some of the answers are less than obvious. That’s especially true for first-time owners who might have years of experience in other fields but none in e-commerce. It’s not being negative to focus on the common errors. For some reason, entrepreneurial people related better to the process of finding errors and bugs in their operating styles.

That’s why it’s often more effective to explore the most frequent errors business owners make. Far too many people burn up a lot of time and money on a logo design for their Shopify stores. While having a recognizable logo is an important piece of the success puzzle for established companies, it’s not such a major component for early-stage businesses. Those precious dollars are better spent on a targeted advertising campaign. The logo snafu is just one example of many. Here are some of the other top pitfalls that e-store founders make.

Not Starting Out with Enough Capital

It’s noble to want to start a business even when you have little capital. Putting sweat equity and elbow grease into an important effort is praiseworthy but can be exceedingly frustrating. Luckily, there are ways around lack of capital dilemmas. Entrepreneurs often find that taking out personal loans is a commonsense way to cover some or all upfront expenses associated with a startup. Personal loans offer several advantages for first-time owners, primarily the fact that sensible borrowing helps them establish credit. Additionally, when you take out a personal loan, you can tailor the terms to fit your budget and the amount of cash you need to purchase crucial equipment.

Adding Too Many Blah Products

Avoid the very human urge to populate your new store with too many products. It’s far better to start slowly, with between 20 and 50 items, than to go all out and place hundreds of things on the menu. You’ll often come across Shopify and other platform users who fall into this rut. Often, they have otherwise attractive, functional e-stores, but it’s obvious that they’ve committed the common mistake of product overpopulation. Owners tend to give too much importance to building a brand at the expense of creating a niche. Think about how you want to differentiate your store. There are many e-commerce sellers out there, so it pays huge dividends to set your shop apart however you can. Some sellers add a few handmade products or art-related items along with top selling kitchen and tech offerings in order to create a unique personality for their shops.

Ignoring the Perfect Mobile Experience

Yes you need quality content in your marketing strategy but it’s unforgivable in the digital age to set up a website without double-checking that every feature is 100% mobile friendly. Check out a few of the newer e-stores, and it’s apparent that only about half of the owners meet this criterion. In an era when mobile shopping is beginning to dominate the entire retail sector, there’s no excuse to miss out on making your store as mobile-friendly as possible.

Being Vague About Your Policies

Vagueness about store policies is one of those things that irks consumers, yet some entrepreneurs are clueless about the situation. What’s it mean to be clear about your policies? It means putting a short but comprehensive statement near or at the bottom of every page on the site. Consider placing the statement higher on the check-out or shopping cart page. People want to know how you handle returns, whether they can get a break on shipping costs if they make multiple purchases, and how long it takes for credit purchases to show up on their bills. Of course, your specific policy statement should include more than just those few items, but the point is to be clear and honest about the guidelines you’ve created for buyers. Don’t leave potential customers in the dark. Let them know you’ve taken the time to anticipate their needs.

Things You Can’t Do With Shared Hosting – But Can With A VPS

Things You Can’t Do With Shared Hosting – But Can With A VPS

When starting any website, the most common solution would be shared hosting. This one is not that expensive and lets you start rather quickly. Many hosting providers offer pretty efficient shared hosting solutions, which include convenient services like cPanel or Plesk, that provide you with a good way to start your online presence. However, the keyword is “start”, since as you proceed and your business evolves, this means that the traffic of your website is getting more and more intense and you probably need more capacities to run more powerful applications. This is when you’ll start noticing the downsides of shared hosting, as your site always competes with lots of other users for resources, and when these are running short, your web presence will experience performance troubles or even crash. Furthermore, if any of the sites hosted on the server gets hacked, then the rest of the sites get “under attack” as well. And the bigger your site is, the more risk you are running when there is a data leak.

To sum up, when renting a shared hosting, sooner or later you’ll feel the urge to switch to something different. And most probably, the best option here will be VPS hosting. Therefore, in today’s article, we want to share with you some features that are exclusive to VPS.

Your site’s performance doesn’t depend on others

Unlike the case of shared hosting, the users of VPS get a fixed amount of resources allocated to them. This is provided by the very nature of the VPS: virtualization technology. That means, that, although all users share the same physical machine, for each of them an independent system is running. This one has its own operating system and a well-defined quantity of resources. This quantity can be rescaled later on, upon the request of the customer for additional payment, but as long as your VPS is running, you may not worry about your neighbors. Apart from ensuring stable performance and saving your website from any downtime, VPS saves you from the inevitable risks of using shared hosting provided by the fact that all customers on a shared server share the same IP. That means, that if any of the neighboring websites is involved in any doubtful activities and gets blocked, the same destiny may wait for your innocent website as well. With VPS this problem will never be the case.

More security

If we have a closer look at security issues, then we’ll find the following risks of using shared hosting. If among any of the websites that are hosted on one shared hosting there happens to be a hacker, this one can easily break through his neighbors’ protection and get the data of their websites. Otherwise, performing this kind of intrusion won’t be of trouble for the hacker, even if he doesn’t have a site on the same hosting: it’s just enough that there is at least one site with poor protection – once it is hacked, the rest of the sites are running the same risk as in the previous case. To sum up, by using shared hosting you are putting up with a constant danger of getting hacked eventually, even if you a trying to do your best with security measures. This fact will be especially troublesome for e-commerce since this kind of website deals with hundreds of financial transactions each day, and in case of a breach, the sensitive data of your customers may get at risk, resulting in vast financial losses. That’s why spending some more money on a VPS now will save you money in the future.

Cost

That we started the discourse on money, let’s continue it in the following section. It’s worth mentioning that by opting for a VPS, you’ll face a great number of possible packages to meet the needs of any business – which is not the case with shared hosting where usually one option with fixed charges is offered. With VPS you choose, how many resources you may require and pay for them. Once your business gains momentum or, vice versa, experiences a period of calm, you can scale up or down available resources, in- or decreasing the payment sum respectively. Very flexible. As for maintenance charges of VPS, they are also lower than ones of shared hosting.

Growth

Taking into consideration the possibility of scaling your VPS up and down in a very flexible way, this brings to you much more control over your growth – adjust resources anytime and feel secure planning your business.

Customization

With VPS hosting you’ll get access to much more customization options than with VPS. This is provided by the high degree of independence from other users that is precluded by VPS – you have your own virtual machine and you can set it up according to your needs, with root access and the possibility to install any software you need. By the way, you can also choose how do you want your server to be managed (unmanaged VPS), whether you feel confident enough to do it yourself or you are ready to pay someone to do it for you (managed VPS). 

Conclusion

Shared hosting might be a good way to start your business. However, most businesses sooner or later grow out of the shared hosting features and need more capacities and security to continue prospering. If you were not sure, whether you need VPS or not, we hope, that this article has made things clear for you. If you have already made up your mind to rent a VPS, check out European VPS provider called HostZealot. See you next time and have a nice day!