C-Suite Executives to Increase Investment in Embedded Finance, Web3 and ESG in 2023, Says FIS
According to new research from FIS, a global leader in financial services technology, c-suite executives plan to put a lot of money into Web3, environmental, social, and governance (ESG) frameworks, and embedded finance in 2023. This is because, even though the economy is uncertain, companies want to use fintech innovations to drive growth.
The report by FIS, "2023 Global Innovation," shows that 60% of c-suite executives are planning to develop new ESG products and services in 2023. It highlights that ESG is a major focus for financial services companies worldwide, and they plan to invest heavily in these frameworks in the coming year.
The report also found that ESG is a must for being competitive in the US, with 56% of financial services firms saying that ESG frameworks will help them be more competitive in the market. The report also says that companies are planning to invest in Web3 technology, which involves decentralisation and cryptocurrency, to drive growth in the face of economic uncertainty.
Most executives globally are expecting a major or moderate impact from embedded finance (84%), decentralised finance (82%), and cryptocurrencies (77%), respectively, in the coming year. This is also reflected in the expectations of US executives, with a majority of them anticipating an impact from innovation in these areas on their business in 2023: embedded finance (81%), decentralised finance (82%), and cryptocurrencies (78%).
According to the report, the US is keeping up with other countries in terms of investment in Web3 technology, as companies worldwide are searching for new growth opportunities.
The report shows that 47% of US financial services companies think decentralised finance is a big chance for their business to grow. But 50% of global financial services firms say that a bad user experience is a reason why they don't use it, and 47% say that they need to know more about the risks before they will join. The report is based on a survey of 2,000 business leaders from around the world done by Longitude Partners for FIS from July to September 2022.
Source: Asset Servicing Times