Integrated Finance, Web3 and ESG Lead Fintech Investment in 2023 Amid Recessionary Pressures, Says FIS Global Innovation Report | MarketScreener

A global survey of 2,000 business leaders from all markets revealed plans to increase investment in integrated financial, environmental, social and governance (ESG) frameworks and decentralized finance in 2023, including cautious optimism towards cryptocurrency.

44% of financial services company executives worldwide say they will invest significantly in the development of integrated financial products in 2023, as consumers demand more convenient ways to pay, bank and to invest.

Nearly two-thirds (61%) of all non-financial services executives told FIS that it would be strategically important to be in the metaverse over the next three years.

ESG is a priority for financial services companies globally, with 60% of executives saying they are developing new ESG products and services.

JACKSONVILLE, Florida., January 24, 2023 – New research released today by FIS (NYSE: FIS), a global leader in financial services technology, reveals that global leaders plan to invest significantly in web3, environmental, social and governance frameworks ( ESG) and integrated finance in 2023, as companies look to fintech innovation to fuel growth despite economic uncertainty.

The first Global Innovation Report 2023 surveyed senior executives and executives from financial services (banks, insurers, capital markets and fintech firms) and non-financial companies (retail, restaurants, travel, gaming and digital content, and technology providers) worldwide on their top areas of financial investment in 2023.

According to the study, most executives around the world say they expect a major or moderate impact from the following areas of fintech in the coming year: ESG (84%), integrated finance (84% ), decentralized finance (DeFi) (82%), the metaverse (80%) and cryptocurrencies (77%).

These projections are largely reflected by WE executives, who expect innovation in these spaces to impact their business in 2023: ESG (83%), DeFi (82%), integrated finance (81%), metaverse (78%) and cryptocurrencies (78%).

“As the threat of a global economic slowdown looms and businesses seek ways to thrive during the recession, it’s clear that unleashing growth requires focus, top-down executive support, a culture of ‘innovation and collaboration to anticipate and adapt to consumer demand.’ Himal Makwana, Global Head of Product Strategy & Web3 at FIS. Our findings show that many executives view decentralized finance, web3 infrastructure, digital assets, and currencies as essential parts of their long-term strategy, both defensively and offensively, to help pave the way for this next phase of the digital revolution.

WE Businesses plan for digital assets and next-generation internet

The next generation of the Internet, called Web3, revolves around decentralized infrastructure like blockchain technology and includes innovations like cryptocurrency, DeFi, and the metaverse. According to new FIS research, the WE keeps pace with other countries’ investments in Web3 as organizations around the world seek the next opportunity for growth.

While almost a third (29%) of WE respondents expressed no interest today in developing cryptocurrency services, only 5% of financial services firms told FIS that they do not plan to offer such capabilities three years from now.

Financial services firms cited the lack of ecosystem services to support crypto (29%), lack of interoperability between platforms (28%), and lack of clarity around regulations (26%) as key barriers to greater adoption within their organizations.

Non-financial services firms shared similar concerns, however, 24% noted the lack of crypto services from banks and other financial service providers as a barrier.

Almost half of WE financial services firms (47%) recognized DeFi as a major growth opportunity for their organization.

There are concerns about DeFi, with 50% of financial services firms citing poor user experience as a barrier to adoption and 47% saying they need to better understand the risks involved before participating.

59% of financial services companies are actively seeking potential opportunities in the metaverse, while 45% of non-financial companies say it will be strategically important to have a presence in the metaverse over the next three years.

Integrated finance to empower WE Companies in 2023

Integrated finance is when consumers have unique and personalized financial services delivered to them when they need them by non-financial companies. In-app payments are most familiar to consumers, enabling the speed and convenience of paying for goods and services within an app, with just one click. New use cases in banking, lending and investing are emerging and the drive to provide integrated financial services is on the rise in the WE

According to the study, 36% of financial services companies will invest significantly in the development of integrated financial products within 12 months.

Meanwhile, 59% of non-financial companies that see an impact of integrated finance on their business told FIS that they would respond by increasing their technology or research and development budget this year.

ESG is widely regarded as a competitive must-have in the WE

ESG is the systematic consideration of environmental, social and governance factors alongside financial factors when making decisions about investments, business practices and business relationships. If supported by the right technology, ESG can open up new opportunities for growth and competitiveness in the US market.

56% of financial services companies in the WE claim that ESG offers an opportunity to improve their competitiveness in the market.

60% of financial services companies told FIS that they are developing new products and services.

To address challenges in accessing and analyzing their own ESG data, 56% of financial services firms say they are investing in technology to improve reporting and disclosures, give clients more transparency into ESG scores and/or provide more granular ESG ratings of assets and securities.

Methodology

All data is based on a survey of 2,000 executives of financial services companies (banks, insurers, capital markets firms and fintechs) and non-financial services companies (merchants, enterprises and technology providers) in nine countries (Australia, BrazilCanada Germany, hong kongIndia Singapore, the UK and the WE). The survey was conducted by Longitude partners on behalf of the FIS between July and September 2022.

About FIS

FIS is a leading provider of technology solutions for traders, banks and capital markets firms worldwide. FIS employees are dedicated to advancing the way the world pays, banks and invests by applying the scale, deep expertise and data-driven insights of FIS. FIS helps customers use technology in innovative ways to solve critical business challenges and deliver superior customer experiences. Based at Jacksonville, FloridaFIS ranks 241st in the 2021 Fortune 500 and is a member of Standard & Poor’s 500 clue.

To find out more, visit www.fisglobal.com. Follow FIS on Facebook, LinkedIn and Twitter (@FISGlobal).

For more information

Kim Snider904.438.6278

Senior Vice President

FIS Global Marketing and Communications

[email protected]