Priya PatelFintech has become mainstream in 2023, with various examples highlighting its widespread adoption and impact. First, AI-focused equity indices have performed exceptionally well, with WisdomTree’s AI-focused ETF rising by almost 50% in 2023. AltFi’s stockmarket index for global fintech companies gained nearly 60%.
The winners of AltFi’s annual fintech awards further demonstrate fintech’s mainstream success. Chase UK, a late convert to fintech and one of the world’s largest banks, won the award for the best digital bank in 2023, competing against popular fintech firms like Revolut, Monzo, and Starling.
The rise of buy now, pay later (BNPL) apps also showcases fintech’s influence. BNPL apps have become prevalent in high-street shops and have attracted attention from regulators concerned about rising short-term debt among younger consumers.
Looking ahead, there is still room for innovation in the credit card subsector. Startups like the Curve app, inspired by the BNPL movement, are emerging, offering new rewards-based and customer-centric ideas.
The ascendancy of fintech has also enabled private investors to gain access to UK Treasury bills, which were previously exclusive to institutional investors. Fintech platforms like Freetrade are democratizing access to these investments, allowing individuals to invest in short-duration Treasury bills and generate secure, high yields.
In conclusion, fintech has entered the mainstream in 2023, with its impact evident in AI-focused equity indices, the success of traditional banks’ digital banking apps, the rise of BNPL apps, and the democratization of investment access through fintech platforms.
