DECEMBER 16, 2022
6 min read
Nobody could have predicted the digital transformation trends that the world will now navigate in the early 2020s. When the pandemic hit, the urgency of digital transformation activities increased dramatically. Organizations of all sizes and across all industries have had to invest in cutting-edge, collaborative technology to stay competitive.
The price tag was an unpleasant awakening for organizations that had not made big investments in digital trends prior to COVID. It did, however, help many people set up businesses for a rich technological future.
Given how quickly things change and how important technology is becoming to businesses today, senior executives will be asking themselves: What are the most important digital trends 2023?
Fintech is based on technology transformation in banking, which will continue to drive new business models in the financial services sector. The seven trends in fintech listed below will have the most influence on the financial industry over the next decade.
So, what are the digital transformation trends to watch in 2023?
Among the biggest digital transformation trends 2023 is definitely artificial intelligence. AI may be able to help build connections and spot trends in complex financial networks by using a wide range of different types of data. In the future, this will have a lot of effects. Analytics with privacy controls will help make sure that only relevant, necessary, and well-cleaned data is used to train financial models. Encryption, secure multi-party computing, zero-knowledge proofs, and other ways to analyze data all are great digital transformation ideas, too.
The “AI-first” bank will have better operational efficiency because it will automate manual tasks and replace or add to human decisions. This will be made possible by a “zero-ops” mentality and better diagnostics. Important digital transformation topics are machine learning, facial recognition, and other old and new AI technologies that can be used in near real-time to evaluate huge and complicated client data sets, which improves operational performance.
“AI-first” businesses operate with the same speed and flexibility as “digital native” firms and customers. Instead of months and years, they will add new features in days and weeks. Banks will also work closely with non-financial partners to come up with new value propositions that work across journeys, digital platforms, and data sets.
DTL is already among top digital transformation trends in financial services for 2022 and will be for 2023. The use of cross-chain technologies will make it simpler for blockchains to collaborate. Chains based on various protocols would be able to communicate and convey data and value across jobs and sectors like payment processing and supply chain management.
Digital transformation in 2022 made all smart contracts, zero-knowledge proof, and distributed data storage and interchange the future of fintech. Existing financial developments, including digital wallets, digital assets, decentralized finance (DeFi), and non-fungible tokens (NFT), rely on these technologies.
Furthermore, conventional stakeholders like institutional investors and funds are gradually increasing the proportion of digital assets in their portfolios. The 2023 digital trends make it simpler for more individuals to get loans and raise the possibility that blockchain and DTL may disrupt current markets. DeFi, for example, which is built on blockchain and employs smart contracts to eliminate the need for a central mediator, is becoming the digital transformation 2023 biggest trend. DeFi’s total locked-up value (TLV) has increased about 50 times in the last ten months. The industry currently has $2.1 trillion in digital assets. Another indicator that blockchain is becoming more useful as a technology is a fact that digital asset exchanges generated over $15 billion in 2021.
Financial businesses need public cloud services, as well as hybrid and private ones to keep up with digitalization trends. Cloud computing service providers control the infrastructure of a public cloud and offer services to companies and the general public. Using proprietary technology, hybrid cloud architecture blends private and public clouds. Private cloud infrastructure is built for a single customer and housed in the data centers of the organization.
Cloud computing’s latest trends in digital transformation:
- Edge computing and cloud computing are critical. It helps remote working be more effective. Various domains are progressively segmenting and evolving in response to edge devices, data centers, and cloud based technologies. In new retail, healthcare, industrial parks, smart cities, and industrial IoT, 5G connection supports new interactions and synergies between IoT, cloud computing, AI, and other technologies.
- Containers in the cloud promote innovation. Container technology is extensively promoted by cloud services. Multiple workloads may run on a single OS instance, saving money and increasing efficiency. This allows PaaS delivery models to be more creative. Cloud providers will focus more on the container as a service platform (CaaS).
- The combination of AI and cloud computing is developing. More AI-cloud platform applications are being used for image and audio searches. This helps the processing of medical images. Cloud platforms will aid deep learning in providing better services to more users.
Wired and wireless networks, near-field communication, low-power wide area networks, narrow-band IOT, and connected end-point devices are all part of the Internet of Things (IoT) communication solutions. Smarter business processes are made possible by developments in embedded systems and smart technologies.
In banking, IoT-based supply chains and property financing are enhancing risk management by ensuring accounting records match real-world operations, enabling a new trust structure. IoT is upending traditional trade finance in shipping and logistics, allowing companies leading digital transformation to create new products based on commodity movement trackings, such as on-demand liquidity and smart contracts. IoT brings banks closer to their customers by incorporating financial services, such as digital payments, in wearables, and it may be a valuable part of digital transformation strategy.
Open source, SaaS and Serverless
All top 10 digital transformation companies use serverless architecture. This is the future of banking as soon as it eliminates the need for businesses to maintain their own servers, freeing up time and resources for customers and employees. Serverless architecture reduces expenses since charges are associated with running software code rather than business requirements. Flexible scaling reduces idle and loss while increasing development efficiency. Because it provides free source code, open-source software is a lifeline for businesses looking to expand swiftly.
Digital business trends are significant on their own, but when they work together, businesses can rapidly extend infrastructure and produce low-cost prototypes. Traditional financial institutions have challenges when it comes to employing IT organizational structures, development competence, and risk management. They must reconsider their IT strategy and promote rapid reaction IT in order to keep up with trends in digital transformation.
Automatization, No-Code and Low-Code
Organizations may utilize hyper automation to rapidly uncover, vet, and automate as many business and IT functions as feasible. Hyperautomation includes components such as artificial intelligence (AI), machine learning, event-driven software architecture, RPA robotic process automation, business process management (BPM), intelligent business process management suites (iBPMS), integration platform as a service (iPaaS), low-code/no-code tools, packaged software, and other forms of decision, real time process, and task automation.
No-code development platforms (NCDPs) and low-code platforms allow programmers and non-programmers to create applications without using traditional computer programming. While still in their early stages, the platforms may reduce the need for expensive software employees.
NCDPs assist businesses in developing cloud-based applications while also coordinating corporate strategy and enabling great customer experience. Audit trails and document production may be automated using no-code or low-code solutions, boosting compliance. This enables banks and fintech companies to respond quickly to market developments.
Given all of the recent achievements in the domain of digital transformation and data trends 2023, it’s reasonable to predict that the next year will also bring its fair share of technological breakthroughs.
Many of us have been forced to reconsider our work habits and business model as a consequence of the pandemic, and as a result, new technologies are being created to provide teams more freedom in where they spend their time without severely hurting productivity.
The world has altered so dramatically in the last decade that 2023 will surely offer digital transformation shocks that no one could have predicted.
What new technology is coming out in 2023?
AI will be more extensively used in 2023 as a result of advances in natural language processing and machine learning. With this innovation, AI can better understand humans and do complex tasks. In the not-too-distant future, 5G is expected to drastically transform our everyday routines and workplaces.
What are the top 3 trends of digital transformation?
Let’s sum up the most current trends and projections.
- Analytics, AI, and ML.
- Low- or no-code development.
- Multiple clouds, native cloud apps, and cloud as a service.
- Computer security and privacy.
- High-level automation and computer-aided manufacturing.
Which technology will be trending in the next 5 years?
Aside from work from home, many businesses and marketplaces will most certainly migrate to cloud computing within the next five years. We also anticipate the continued development of cloud computing alternatives, such as edge computing and fog computing described here.