What’s To Come in 2023? The Industry Shares Their Predictions

It’s halfway into the first month of the new year and the expectations for 2023 are buzzing. Fintech and alternative finance executives have different views on what’s to come. Here’s what they had to say:

Nick Chandi (CEO & CO-Founder at Forward AI): “Adopting real-time payments (RTPs) will be critical in 2023 as SMBs continue to grow. RTP transactions are set to grow 300% globally over the next five years, potentially becoming the new standard for banks, FinTech’s, and businesses to move money. The implementation of real-time payments allows SMBs to manage their cash flow better, settle transactions in real-time, hold cash for longer, and make due payments instantly.”

Bruno Raschio (President at East Capital): “Predictions include negative growth in the equities markets as earnings estimates lower, the S&P to remain below 4,000 by the end of the year, as well as stagnant growth in real estate prices. Even a 10-20% in price reductions in real estate prices as interest rates continue to rise, closing in on 30-year highs.”

Gregg Templeton (Founder at TRAM Funding): “I predict that embedded finance will really take root this year. Both B2B and B2C will be looking for ways to embed banking and financial services directly into their user experience.”

Tyson Rose (Head of Partnerships at BlockApps): “My top three predictions for the financial world as we enter 2023 are as follows. Lenders will outsource more of their business processes and adopt new technologies to drive down costs wherever possible. Smaller lenders will enter the direct ABL and factoring market. Banks and FIs will focus on building fintech solutions to take greater market share in the transportation and supply chain financing industries.”

Sharmylla Siew (Senior Underwriter at Lending Valley): “We predict a number of funders to tighten up their guidelines during the recession and the continuous spread of the regulations state by state with less funding being outputted by hybrid funders.”

Alicia Josshua (ERC Specialist & Field Underwriter at Symmetry Financial Group): “Small businesses are leaning more towards alternative financing because of the flexibility. This financing niche allows for quick turnarounds in approvals and fundings within a week. Big banks have scaled back on lending such as lines of credit [and there’s a] longer approval process such as 4-8 weeks. The alternative financing space is not being affected and makes a great outlook for businesses.”

Andy Parker (CEO at The LCF Group): “2023 will be a challenging year for both small businesses and funders. Increasing borrowing costs, increased compliance and regulatory costs, and more frequent defaults for funders will lead to more expensive funding and tougher qualifications for small business borrowers.”