Finance Trends in the UK: Top Trends to Watch Out for in 2023!

June 16, 2023

The year 2022 plagued the finance sector with an avalanche of setbacks, including dropping valuations, the bitter gusts of the cryptocurrency, financing falling to pre-pandemic levels, regulators racing to impose more red tape, and firms dissolving at a disastrous pace.


Entering 2023, the finance sector will have to look over its shoulder, carefully consider the emerging trends in finance and make sense of how the recent trends in financial services will carry into next year.


The Deloitte Study

Deloitte’s study says the financial trends have effectively navigated unprecedented levels of uncertainty over the last two years. From real estate to insurance to banking and recent trends in financial markets, financial services businesses worldwide responded to the epidemic with fantastic endurance and adaptability, assisting individuals, organizations, and governments in regaining their footing.


But it’s still a long way up. With a combination of near-term geopolitical and economic challenges—the conflict in Ukraine, inflation, supply chain disruptions, and the prospect of a regional or global recession—2023 promises to be a year in which additional regulation and transparency requirements become the latest trends in finance.


So how can executives in the financial services industry navigate the road ahead? They may use the lessons they’ve gained since 2020 to solve obstacles and identify opportunities, such as concentrating on talent, financial technology trends, risk, regulation, and purpose.


Top Financial Industry Trends To Watch Out for in 2023

1. Green Financing

The field of green finance is gaining popularity in the financial sector because of its focus on the mutual influence of the natural world and the economy. Consequently, businesses worldwide have made “sustainability” a top goal.


The Green Gilt and NS&I’s Green Savings Bonds fund the UK’s green economic transformation and create green employment. The Framework was published in June 2021, launching the UK’s Green Financing Programme in 2021–2022, raising £16.4 billion in green proceeds.


2. RegTech

RegTech is becoming a FinTech staple. RegTech firms handle monitoring, reporting, and compliance. The term initially arose in 2008, but the sector has grown significantly and is expected to develop further. RegTech is anticipated to be worth $44 billion by 2030. Its 2021 value was $8.2 billion.


As more services go digital, hazards rise. Fraud, hacking, data breaches, and other risks thrive in uncontrolled digital finance. Thus, financial institutions are constantly stressed. Consequently, driving the growth of RegTech.


3. AI Dominance

AI in fintech is anticipated to grow 25.3% from 2022 – 2027. Fintech firms have transformed due to the computational arms race. Machine learning, AI, Big Data Analytics, and more enable computers to crunch massive, diverse, and deep information.


AI and machine learning allow banks and fintech to handle massive volumes of client data. This data and information are compared to find timely services/products clients demand, which has helped build customer connections. For 2023, AI in FinTech will foster algorithmic decision-making and enhance chatbots via NLP, making it one of the key technology trends in financial services.


4. Multi-Cloud & Hybrid Cloud Strategy

Cloud lets banks manage enormous and variable workloads, allowing great performance and resilience. However, security, privacy, and latency issues made banks wary. Cloud use in banking will increase as cloud service providers mature their offerings. Banks will use multi-cloud and hybrid-cloud strategies to de-risk resilience, recovery, and performance.


Furthermore, vertical cloud platforms may mix software, platform, and IaaS ( infrastructure as a service) to deliver banking and financial services solutions. Finally, quantum computing is predicted to grow as banks prioritize data processing and AI algorithms.


5. Digital-Only Banking

Digital banks are one of the fastest-growing FinTech trends, displacing conventional banking. Digital banking redefines convenience, which drives popularity. Additionally, cross-border transactions, low costs, instant peer-to-peer transfers, and investment alternatives drive demand. By 2024, 2.5 billion individuals will use digital-only banks. Thus, FinTech will continue its digital banking transformation.


6. Hyper Automated Banking

Banks will use AI to hyper-automate business processes after adopting workflow management and RPA solutions. Cognitive Document Management, Forms digitalization, digital signatures, and automated workflows would remove physical interventions in client onboarding, KYC checks, lending and insurance paperwork, trade handling, and settlement. This may cut processing time from days to mere minutes. Thus rendering it one of the global financial trends to look out for in 2023.


7. Embedded Finance

As more stores provide short-term loans and digital wallets allow rapid contactless payments, integrated finance is showing its promise.


Embedded finance’s flexibility and universality allow fintech startups to disrupt conventional transactions. In 10 years, the embedded finance market value is predicted to surpass $7 trillion, twice the value of the top 30 banks!


8. Surge in Contactless Payments

The corona epidemic boosted contactless payments in FinTech. And the pattern seems to continue. By 2023, these transactions would climb 92% worldwide, according to 2021 research.


Contactless payments are popular for quarantine security. Customers now realize how fast, simply, and conveniently they can buy. The average monthly contactless payments from people in the UK are expected to climb from 2 in 2015 to 14 by 2025. Thus, they constitute one of the developing financial industry trends in 2023.


9. Virtual Cards

 Virtual cards are revolutionizing company expenditure management and financial spending. They are becoming more popular due to their improved security, which prevents hackers and fraudsters from misusing them.


They also revamp employee business costs. Every employee has a unique card, so anybody can see who is spending what. Team budgets may control spending and distribute funds. Consequently, in 2023, digital banks will increase virtual card usage.


10. Buy Now Pay Later 2.0

Despite concerns about buy now pay later (BNL), the current financial market trends of interest-free installments continue to grow.


In 2022, 360 million users worldwide and 17 million UK customers utilized BNPL services. Furthermore, Klarna, UK’s most popular BNPL company, got 194,388 downloads in September 2022.


BNPL is anticipated to grow in 2023, but the UK government will require lenders to evaluate affordability before providing loans. To prevent misleading ads, BNPL’s financial marketing guidelines will alter.


Wrapping Up

The current financial market trends and emerging ones will significantly change the landscape of finance for the UK in 2023. We are optimistic that after reading this blog, you now know the latest trends in finance to look out for in 2023.


However, if you still have any doubts, it’s best to talk to an expert accounts company like GJM & CO. Our experienced accountants will walk you through these trends, tell you what you can expect as a business owner, as well as help you prepare for them.


Should you have any queries or need consultation, Schedule a Call today or write to us at