Innovation has always been a driving force in the financial sector. The past health crisis has accelerated cycles of innovation and digitalisation by pushing banks to massively adapt and adopt new technologies. The future of the sector promises to be exciting. It will also be linked to societal revolutions and new generations which will be sources of change.
Five major trends are emerging on the horizon for 2023, which looks to be a promising year.
Augmented artificial intelligence
Our data related to social networks and the massive use of smartphones is growing exponentially and can feed artificial intelligence (AI) algorithms, which makes them more relevant. Companies in the financial sector that are increasingly using the cloud will be able to better exploit this data for operational efficiency, risk management and customer experience.
2023 will be a year where AI will become the best decision-making companion for asset managers, as well as an assistant for back-office employees who can focus on value-added tasks. Augmented intelligence will therefore make it possible to have a 360-degree vision of the customer and the players in the value chain by offering them solutions adapted to their needs. Simplicity and efficiency will be the key words for an AI at the service of all.
Tokenisation and crypto
After more than 14 years of existence, the tokenisation of assets seems to be one of the use cases on which banks have found a common value. With regulatory pressures in Europe, the ground seems to have been conquered for increasingly ambitious banks in this segment.
The implementation of the pilot scheme in March 2023 will require players to position themselves strategically, even if we only anticipate a real takeoff with the launch of central bank digital currencies. The premises have already been initiated, and the future is being built today.
On the topic of cryptocurrencies, numerous incidents in 2022 (Celsius, Terra Luna and more recently FTX) have highlighted the flaws and reinforced the idea that this entire sector must be regulated. The adoption of cryptocurrencies will go through an institutionalisation of the market and a professionalisation of the function. A strong growth of actors who will receive their registrations in Europe is to be anticipated.
Web3, metaverse and new business models
Web3 and metaverses have been talked about a lot in 2022. As a reminder, Web3 refers to a third generation of the internet where services will be based on blockchain and cryptocurrencies. In response to the supremacy of web giants, consumers will be able to regain possession of their data and thus monetise it.
These new business models will emerge in 2023 and the positioning of the financial sector in the field has yet to be defined. The colossal investments of venture capitalists in this sector let us imagine the potential, such as metaverses where the physical world is mixed with the world of the beyond.
The digitalisation of the economy has led us to be very careful in our daily lives and to constantly strengthen our cybersecurity systems. Not a day goes by without attacks, regardless of the sector. In 2021 and in France, more than one in two companies declared that they suffered between one and three cyber-attacks during the year. The growth of teleworking has accelerated these risks of attacks, which are increasingly varied and sophisticated.
The development of the internet of things will also make us more vulnerable, and it is education that will be the key to success in countering these attacks. Cybersecurity will be, more than ever, a common motto for all players in the sector.
Global warming and ESG indicators are on the agenda of all companies. This is a subject that concerns us all. Regulations will certainly require that investments be measured from this angle and therefore contribute to the development of an ecosystem. But, just like digital, ESG will be a necessary selection criterion for choosing projects. Green finance will therefore be a must in the world of tomorrow.
New technologies are ultimately a means and it will be up to companies to demonstrate their ability to transform them into innovative and competitive solutions. Speed, creativity and agility will be the characteristics of tomorrow’s successful companies.