An article by our co-founder and CEO, Sankaet Pathak, was recently featured in Fast Company noting the upcoming banking revolution and the trends that are poised to propel it.
Citing research from Zion Market Research, the fintech as a service platform market is predicted to grow to $949 billion by 2028, changing what we consider banking today. Banking will take on new forms, evolving into the fabric of our everyday digital experiences and four trends will affect that growth.
The embedded finance ecosystem will benefit from increased regulation
Today, embedded finance is part of our everyday digital lives, and it has improved the customer experience through lending, insurance, and other buy-now-pay-later offerings while generating more business for sellers. Until recently, embedded finance moved without much oversight, but that is set to change as regulators become more involved, driving more specialized, productive banking offerings.
A new crop of fintech companies will be spawned, driven by Gen Z
Gen Z, though young now, will see their income surpass that of millennials by 2031, increasing fivefold to $33 trillion by 2030. Their money habits and behaviors will inform the next 10 years in banking as this transfer of wealth quietly occurs. The investment patterns of Gen Z will divide into groups with some pursuing ESG objectives, others pursuing a more traditional portfolio, and others a more conservative stance based on their perception of culture. Sankaet’s macro prediction with Gen Z is that they will invest aggressively, and as their demands increase, personalization will be the way to meet their needs.
The value of fintech offerings will shift from access to wealth creation and beyond
Primarily driven by the rise of embedded finance, more people will be able and willing to participate in our banking system than ever before. Despite these efforts, the wealth gap, fundamental distrust, and systemic bias remain in our banking systems.
To learn more about the four trends and the upcoming banking revolution, read the article here.