10 Top Global Fintech Trends 2024
Fintech trends 2024 show that traditional banking practices and physical currency are being challenged and rethought in the fintech industry, which is undergoing fast transformation. In order to make fintech more efficient and secure in the future, AI, ML, and blockchain are having an impact.
Author:Gordon DickersonReviewer:Habiba AshtonJan 10, 20241.6K Shares43.3K Views
Fintech trends 2024show that traditional banking practices and physical currency are being challenged and rethought in the fintech industry, which is undergoing fast transformation. In order to make fintech more efficient and secure in the future, AI, ML, and blockchain are having an impact.
The emergence of digital currencies, 'buy now, pay later' models, smart contracts, neobanking, RegTech, and mobile payment solutions has brought about a number of welcome and safe alternatives. Further disruption is about to occur in the startup and company finance arena in 2024, which will shape the future of fintech.
Moving away from physical money, increasing payment accessibility, and embracing digital transactions through mobile devices, digital wallets, and wearable tech are among the top ten fintech trends to keep an eye on in 2024. With the advent of this digital age, emerging markets will enter a new era of boundless opportunities for digital commerce and contactless payments.
Embedded Finance
As more platforms take advantage of the fintech infrastructure and APIs to include financial services into their products, the embedded finance industry is projected to experience explosive growth in 2024.
Embedded finance refers to the incorporation of financial services into non-financial platforms, including social media, e-commerce, and healthcare. This method seeks to generate new sources of revenue and improve customer loyalty for these platforms by providing customers with easy, customized, and individualised financial solutions.
Payment plans and other forms of finance may be available on an online marketplace, and insurance and other forms of funding may be available on a health care platform.
As a result of this and the proliferation of developer conferences in the financial sector, I expect that more and more established banks will welcome contributions from developer communities into their technology stacks as they strive to compete with innovative fintechs.
Central Bank Digital Currencies (CBDCs) Momentum
The digital currency industry is on the brink of a revolution as many countries investigate and maybe introduce CBDCs. These digital currencies, which are backed by the government, have the potential to revolutionize cross-border payments, increase financial inclusion, and decrease transaction costs.
Many nations are looking at CBDCs as a potential alternative to current super-apps like WeChat and Alipay. China, for example, is testing out its digital yuan extensively.
In addition to the United States and Sweden, CBDCs are being investigated in South Korea, the Bahamas, and other nations. Financial stability and the global monetary system are being studied by international institutions such as the IMF and BIS in relation to CBDCs.
Digital wallets and platforms to enable CBDC transactions are two ways in which private sector firms in the IT and financial industries are investigating possible roles in the CBDC ecosystem.
Digital Assets
With the introduction of new platforms, goods, and services to bolster the digital asset ecosystem, 2024 is shaping up to be a banner year for digital assets in terms of acceptance and innovation.
Included in the category of digital assets are digital artwork, non-fungible tokens (NFTs), and cryptocurrencies (such as Bitcoin). Investors, regulators, and established institutions are starting to take notice of these digital assets as they gain popularity and value.
Some of the benefits of digital assets include more openness, better security, more liquidity, and the ability to innovate at the cutting edge. One example is the problem that cryptocurrency solves: how to implement a worldwide, always-on payment system in real time.
Because tokens allow for fractional ownership and easier access to previously inaccessible businesses, there is always something for those who desire it! Last but not least, digital art offers limitless possibilities when linked with code, in contrast to conventional media forms (like paintings), where originality stops at painting alone.
Mobile Payments
By 2024, mobile payments will have become the norm, and this will have a profound impact on the financial technology industry. Insider Intelligence predicts that mobile commerce will account for 8.7 percent of overall retail sales by 2026, even after accounting for the global pandemic. This may help to explain the explosive growth of mobile payments in 2024.
The forecast is based on several variables. You should know that Juniper Research predicts that the total number of users will exceed one billion by the year 2024.
In 2024, digital wallets will process more than one-third of all online payments worldwide, thanks to the proliferation of mobile commerce. The speed and safety of mobile payments, which are driving this trend, are major factors.
The concept of embedded finance, which involves integrating payment systems inside platforms, may also hasten the adoption of mobile payments. Last but not least, the surge in interest in on-demand pay and earned-wage access searches demonstrates the growing trend of mobile-first, adaptable payment methods.
Decentralized Finance (DeFi) Maturity
DeFi is undergoing a transformative phase in 2024, with a focus on maturation and expansion. The ecosystem is expected to refine lending and borrowing protocols, enhancing efficiency and reliability. Decentralized exchanges are introducing novel features to reshape peer-to-peer trading dynamics.
Decentralized insurance platforms are expanding, with the potential to broaden coverage and more customizable products. This evolution aims to address diverse user needs and mitigate risks associated with DeFi activities.
DeFi in 2024 is maturing in its existing capabilities and expanding its horizons to offer a more comprehensive and user-centric financial ecosystem. The industry's commitment to scalability and regulatory compliance underscores its commitment to fostering a secure and sustainable decentralized financial landscape.
AI-powered Advisory And Asset Management
As more individuals and organizations look for easier and better ways to manage their money, 2024 is shaping up to be a big year for advice and asset management driven by AI.
I was really hoping this would have occurred by 2023, but it seems like there hasn't been much of a push for widespread use. As computing power continues to rise, more conventional financial institutions will begin developing their own ML and LLMs. Large financial institutions are beginning to create their own LLMs; examples include Goldman Sachs and JPMorgan Chase.
Actually, if you happen to be in the US, you may want to consider becoming an AI developer. Wall Street is now swarmed with AI expertise, so it's a real race to the top.
Generative AI In Fintech
In 2024, more and more financial companies will likely experiment with generative AI to explore how it might produce revenue and new ideas.
Institutional and individual wealth management are being revolutionized by AI-driven financial advice and portfolio administration. Smarter, more efficient, and individually designed monetary solutions that boost performance and decision-making are possible thanks to this novel method, which makes use of massive volumes of data and complex algorithms.
The immense potential of artificial intelligence was recently highlighted at an SBI Fintech conference, with a focus on how the technology may assist large banks in better serving their customers in the digital age and becoming more relevant to them. The West isn't the only one keeping an eye on this, either!
Open Banking API
In 2024, the integration of open banking APIs will revolutionize the fintech sector. A number of reasons are propelling the open banking API trend, which is essentially a framework that enables external developers to create apps and services for banks.
Included in this category are the fintech software development firms' latent possibilities for progress, change, and teamwork.
As stated by the Fintech Times, when banks and fintechs work together openly, it improves the speed and efficiency of financial services by allowing consumers and firms to share data seamlessly.
Furthermore, via the use of standardized APIs, open banking enables users to uncover novel financial experiences. Furthermore, it paves the way for the development of tailored financial services, which in turn enhances the user experience.
As a result, by 2024, the world's API requests for open banking are projected to have increased by 645%.
Blockchain Integration
In 2024, more and more fintech companies will use blockchain technology to either enhance or revolutionize the financial sector, which means that blockchain integration will likely see increased use and development.
By enhancing trust, transparency, security, and efficiency, financial processes, systems, and products are made better with blockchain integration.
For example, smart contracts—which automate complicated transactions while assuring compliance with predefined rules—could become commonplace as a consequence of blockchain integration.
Integrating blockchain technology into existing financial systems might pave the way for decentralized finance (DeFi), which in turn can facilitate shorter transaction times and lower transaction costs by eliminating middlemen.
This groundbreaking method has the potential to tokenize real estate properties and other assets, transforming them into marketable digital tokens that can be readily traded using distributed ledgers. This would lead to more liquidity and flexibility in markets throughout the world!
SaaS
In 2024, the software as a service (SaaS) business will be the main driver of a radical change in the financial sector. Software as a service (SaaS) provides the ease of cloud-based apps, letting companies concentrate on improving the customer experience without worrying about installation difficulties or expenses.
Software as a Service (SaaS) has been very successful in the financial technology business. The successful deployment of security measures is a major reason for this success since it gives firms peace of mind.
In addition, the inherent scalability and flexibility of SaaS make it ideal for meeting the increasing demands of fintech consumers. The financial technology industry's software as a service market is anticipated to see exponential growth this year, with a staggering yearly growth rate of 18% projected for 2024.
One industry that has completely adopted SaaS is lending on internet platforms. Due to their scalability, user-friendliness, and low maintenance requirements, many systems have made use of cloud technology and the SaaS model.
Furthermore, because of the ubiquitous nature of SaaS solutions, lending digital platforms have made great use of data accessibility and integration.
SaaS's safe, flexible, and lucrative software development options for financial services are reshaping the fintech industry. Founders and specialists in the SaaS business get together at big events like SaaSTR 2023 to talk about fintech and other important developments brought about by the industry's fast expansion.
Full-Stack Evolution
The trend among fintech companies is known as "full-stack evolution," and it describes their transition from providing specialized products to providing comprehensive solutions. The goal of full-stack development in the fintech industry is to increase consumer value and convenience while differentiating and loyalizing players.
If a fintech companybegan as a payment platform, it may later expand to include banking, insurance, wealth management, and lending services. An early participant in the financial technology industry may have provided a lending platform; now they may also provide investment products, savings accounts, and credit cards.
Even if they began as an insurance platform, a fintech company might eventually branch out into other areas of health, wellness, and lifestyle. In 2024, more fintech companies will likely want to become one-stop shops for their clients, which means full-stack evolution will likely see greater impetus and rivalry.
FAQs About Fintech Trends 2024
What Are The Emerging Technologies Shaping Fintech In 2024?
Fintech Trends 2024 encompass various emerging technologies such as blockchain, artificial intelligence, and quantum computing, revolutionizing the financial landscape.
How Is Decentralized Finance (DeFi) Evolving In The Fintech Space In 2024?
DeFi continues to evolve, with 2024 witnessing advancements in lending protocols, decentralized exchanges, and innovative insurance solutions, marking a transformative phase for the sector.
What Role Does Regulatory Compliance Play In The Fintech Trends Of 2024?
In 2024, regulatory compliance remains a crucial aspect of fintech trends, as the industry focuses on aligning innovations with established regulations to ensure stability and security.
How Are Fintech Companies Addressing Cybersecurity Challenges In 2024?
Fintech Trends 2024 highlight a proactive approach by companies to tackle cybersecurity challenges, with increased investments in advanced security measures and technologies.
What Impact Do Environmental, Social, And Governance (ESG) Factors Have On Fintech Trends In 2024?
Fintech trends in 2024 are influenced by ESG considerations, with a growing emphasis on sustainable and socially responsible financial solutions, reflecting broader societal and environmental concerns.
Quick Recap About Fintech Trends 2024
Fintech Trends 2024 promises a dynamic landscape characterized by the integration of emerging technologies, the maturation of decentralized finance (DeFi), heightened regulatory compliance, cybersecurity resilience, and a growing focus on environmental, social, and governance (ESG) factors.
The evolution of fintech in 2024 reflects a commitment to innovation, security, and sustainability, shaping the future of financial services in a rapidly changing digital era.
In 2024, fintech is expected to merge with finance, creating a new environment where innovation, disruption, and accessibility all come together.
The industry is rapidly moving towards a future that is more digitally linked and accessible as these changes reshape financial interactions and consumer views.
Jump to
Embedded Finance
Central Bank Digital Currencies (CBDCs) Momentum
Digital Assets
Mobile Payments
Decentralized Finance (DeFi) Maturity
AI-powered Advisory And Asset Management
Generative AI In Fintech
Open Banking API
Blockchain Integration
SaaS
Full-Stack Evolution
FAQs About Fintech Trends 2024
Quick Recap About Fintech Trends 2024
Gordon Dickerson
Author
Habiba Ashton
Reviewer
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