If the new year will have you shopping for a new checking account, you may want to get up-to-speed on the banking trends 2023 has in store. The coming year will bring more maturity to established fintech companies plus an emphasis on person-to-person payments and banking access at traditional banks.
Whether you’re actively shopping for the best checking account for 2023, or you’re just curious about what checking account trends you may see next year, here’s what you need to know.
Prepare for Fewer New Fintechs and Better Existing Fintechs
In the past few years, we’ve seen the launch of numerous fintechs (financial technology companies) promising to change the banking landscape. With venture capital funding drying up, the deluge of new fintech startups and online banks promising to replace your checking account is likely to slow down. This will allow established fintech companies to focus on building their customer bases and improving their products. Less noise in the marketplace will likely make it easier to find products that work for you.
While you probably won’t have as many new personal finance apps throwing welcome bonuses your way, the apps you currently use will mature and become more useful. One opportunity for fintech companies to improve is to offer payments to credit cards.
Many fintech banking apps let you receive direct deposits, and they offer debit cards for in-person payments and ATM access. Some even offer their own branded credit cards. But Venmo, Cash App and PayPal don’t currently offer a way to pay credit card bills using their accounts.
For many users, this means they need to have a traditional bank account in addition to these apps. Payments to credit cards from fintech apps may not happen in 2023, but expect these apps to offer the ability to pay third-party credit cards in the not-so-distant future.
Keep an eye on the offerings from fintechs to spot future trends for the banking industry as a whole. For most people, a fintech won’t replace a traditional checking account, but some fintechs’ offerings are within striking distance of being able to do so.
Look for Traditional Banks That Improve and Emphasize Person-to-Person Payments
For a long time, traditional banks have struggled to move away from paper checks and toward a digital model for person-to-person payments. And their attempts have been feeble at best. When individual banks have attempted to develop person-to-person payment systems, the process has usually required extensive setup on the user’s behalf. The now-defunct clearXchange was clunky. While Zelle certainly works better, the interface many banks offer is cumbersome and often hidden behind multiple menus in the banks’ mobile apps.
The market for person-to-person payments is expected to continue to grow by 17.3% annually over the next decade, and banks have no desire to cede this space to PayPal, Apple and Google. Consequently, you can expect banks to increase the emphasis they put on their individual person-to-person payment capabilities in 2023.
Person-to-person payments will likely also become a more prominent feature of mobile apps, and bank-based person-to-person payment apps are bound to improve. You might also see banks provide incentives for making person-to-person payments via Zelle.
Consider this as you shop for a new checking account in 2023. A traditional bank checking account with a good Zelle interface may be able to replace another app for person-to-person payments.
Consider Banks With Retailer Partnerships
Some forward-thinking banks are attempting to expand their presence by pursuing partnerships with brick-and-mortar retailers. Such partnerships can augment ATM networks and provide accessibility options for underbanked communities.
The Capital One/CVS partnership is an example of this—the agreement added over 9,900 banking access points to Capital One’s network. Thanks to this partnership, Capital One customers can deposit cash into their accounts at any CVS. Look for more banks to announce partnerships with retailers in 2023.
If access to your account is important to you, look for bank logos the next time you’re checking out at local grocery stores, big box retailers, convenience stores and pharmacies. Or search online for “banking at” and the name of your favorite retailer.
How To Find the Best Checking Account for You
If you’re looking for the best checking account in 2023, check out our list of the Best Checking Accounts. There, you’ll find several options to consider, whether you’re looking for interest checking, ATM access or low fees. As you hunt for your next checking account, here are a few things to consider.
Do you need a physical bank? If you use your checking account to pay bills, receive direct deposits and write the occasional check, you likely don’t need a bank with a physical presence near you. If you frequently need cashier’s checks, want to access a notary or prefer in-person service, consider a bank with local branches.
Can you access cash from your account? Most people will need to access cash from an ATM occasionally. Look for a bank that offers fee-free access to a large national ATM network, such as Allpoint or MoneyPass. Better yet, find a checking account that reimburses ATM fees charged by other banks.
Are you paying fees? If you pay a monthly maintenance fee, a minimum balance fee or other recurring fees on your checking account, it’s time to shop around. Many banks offer no-fee checking accounts with no monthly fees, no minimum balances and fee-free access to ATMs.
Bottom line
The best checking accounts in 2023 are likely to make incremental changes and minor improvements to existing offerings. Now that VC funding has dried up, you’re not going to see as many fintech launches. But established players are likely to continue improving their products, especially when it comes to access and person-to-person payments.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
