By Chris Cox, Apiture COO

As we head into the final months of 2022, now is a great time to look at the state of digital banking and where the industry is headed in 2023. Here are some of the important trends we’ve seen this year that are shaping banking going forward.

1. Better use of data will help community banks and credit unions compete: As face-to-face conversations at the branch continue to decline, intuitive and no-code data intelligence tools are emerging to help institutions understand what is happening in their users’ lives. These tools will help community financial institutions level the playing field with larger banks by serving up insights that can deliver truly tailored offers to consumers and businesses. Community and regional financial institutions without in-house teams of data analysts stand to gain the most.

2. U.S. regulators will take a stand on open banking: In 2023, regulatory bodies such as the Consumer Financial Protection Bureau (CFPB) and the OCC are likely to enable consumers to determine how and where their data is shared. Although regulators have not yet provided strong guidance, they are already establishing best practices in areas like compliance, Bank Secrecy Act management, and vendor due diligence. New guidelines and governance around data provisioning and permissions will give rise to new providers and tools. Financial institutions should ensure they are working with partners who understand the implications of new regulations in this area.

3. Banking-as-a-Service and embedded finance are at a tipping point: This year, the number of institutions of all sizes participating in Banking as a Service and embedded finance has grown significantly, but we are just seeing the tip of the iceberg. 2022 has largely been about educating banks and credit unions about these opportunities. In 2023, we’ll see more financial institutions adopt an embedded finance strategy to expose their brand to new audiences without expanding their geographic footprint.

4. Cryptocurrency hype has cooled but is still important to consumers: Despite crypto’s recent volatility, consumers are still showing strong interest in virtual currencies, and financial institutions of all sizes are pursuing and executing on crypto strategies. In 2023, financial institutions will rely on strong partners to navigate increased regulation in this area. The impact of the recent FTX news is yet to be fully realized, and in 2023, financial institutions will rely on strong partners to navigate increased regulation in this area.

5. An increased focus on small business customers is on the horizon: Somewhat neglected in the past, the important small business segment will demand more from financial institutions. This group expects the same ease of use and comprehensive feature set in their professional lives as they do as consumers, and they will switch their bank or credit union for solutions that provide a superior experience. A strong business banking platform is critical given today’s economic uncertainty. Having solutions that provide insights into cashflow and credit facilities/lending, for example, is crucial to offering small businesses what they demand.

As you make important decisions about your 2023 strategy, the Apiture team is here to help you meet these trends head-on and introduce you to products and services that can add value for your users.