FinTech companies have been dismantling and improving the financial landscape for the past decade. The core economic infrastructure has remained unchanged, and this cumbersome entity has allowed bright minds to create value by solving specific pain points encountered by individuals and businesses.
As the technological revolution continues to roar, the potential and position of FinTech disruptors grow stronger, and 2023 will prove to be another breakaway year. Consumers have grown accustomed to convenience and speed, and anyone that can deliver these two attributes earns their allegiance. With a global slowdown seemingly in the rearview mirror, investors backing the right FinTech project in 2023 could see returns outweighing the pain of 2022.
Headed in 2023 this article examines three of the most promising FinTech companies with their sights on disrupting the current status quo and optimizing financial services globally.
MoneySwitch
MoneySwitch offers liquidity services to Money Services Businesses (MSBs), allowing them to move away from the pre-funding model and toward an on-demand model. The pre-funding model remains the dominant modus-operandi for all businesses engaging in international transfers of value. It involves MSBs leaving funds in bank accounts worldwide and waiting for settlement requests.
This has been the de-facto fix for cross-border payments that still rely on the SWIFT network. MoneySwitch uproots this idea and leverages on-chain liquidity and blockchain technology to build global capital corridors allowing MSBs to access permissionless loans when and where they need them. With no tech integration required, once an MSB has completed MoneySwitch’s onboarding process, they can borrow and repay anytime.
MoneySwitch supercharges global capital efficiency. MoneySwitch delivers same-day wire transfers to MSBs that can make settlements instead of relying on payment cycle estimates and the SWIFT network’s typical three to five-day transaction time. With increasing cross-border payment flows from businesses and individuals, MoneySwitch creates financial infrastructure that bounds over the traditional apparatus and will enable greater capital efficiency and more timely and convenient international settlement times thanks to its global liquidity provision.
Klarna
Klarna is a Swedish financial technology company primarily providing payment services. The service allows shoppers who want to buy now and pay later or those looking to pay off larger purchases over a longer time frame. Klarna has already integrated into stores such as HandM and other high-street retailers.
Klarna supports variable payment plans and allows clients to extend their repayment window through their app. As credit availability tightens with sustained rate hikes from central banks all over the globe, consumers will increasingly look to payment service providers who offer increased flexibility on purchases. Klarna makes online shopping easier and already boasts more than 150 million active consumers.
Robinhood
Robinhood has onboarded a new generation into financial markets and got ridden of fees and commissions for trading. Young adults form the bulk of Robinhood’s client base. Young adults who want to invest in stocks, cryptos, or even speculate on options without paying the high fees associated with traditional brokers.
Robinhood has grown rapidly and disrupted the brokerage industry by making financial markets more accessible to a broader audience. The platform features a highly simplified user interface that has been a massive part of the company’s success in attracting investors. Given that most of Robinhood’s users are young, the company has a reliable client base to tap into in the following years. With the continued interest and democratization of financial markets, Robinhood remains well-positioned to become a dominant broker in the modern landscape.
Watch FinTech in 2023
The nimble approach of FinTech companies, paired with their violent focus on innovation, will drive another wave of growth in 2023. The result for the consumer means more efficient services as FinTechs build out parallel financial service infrastructure. The increased demand for international settlements, consumer credit, and investment services gives FinTech companies plenty of verticals to address. They will continue to capture an increasing market share of all financial services in 2023, and many expect a strong turn-around year after the sea of red that was 2022.
