Priya PatelThe most important fintech trends for 2024 are outlined in this article. Some key points include:
– The breakthrough of generative AI, particularly in the fintech space, will continue in 2024, with large language models (LLMs) playing a significant role.
– IPOs are expected to be a major trend in 2024, with several fintech companies possible candidates, including Klarna, Stripe, Revolut, and Bitpanda.
– The rise of FinBots, chatbot-style AI systems specializing in answering financial questions, will continue in 2024, with examples already being developed by JPMorgan, Bitpanda, Klarna, and First Bank.
– The interest rate turnaround brought about by high inflation from the COVID-19 crisis is influencing fintech, with savings platforms becoming more prominent.
– Biometric authentication, such as facial recognition, will become increasingly important in the financial sector as a more secure alternative to passwords.
– Embedded finance, where products come with integrated financing, will continue to gain traction in 2024.
– Banks are opening up to Bitcoin, as seen with the approval of Bitcoin Spot ETFs in the USA, and more financial institutions are expected to offer crypto asset services.
– Compliance with regulatory requirements will be supported by RegTech providers, with new regulations affecting the fintech industry such as MICA, EU consumer credit directive, ban on Payment for Order Flow, Crypto Travel Rule, CSRD, and DORA.
– Crypto companies are experiencing a resurgence, with preparations being made for a potential bull run in 2024.
– A2A payments, which allow direct transactions between accounts without intermediaries, will become more common, especially in the B2C sector.
– B2B BNPL services and pay-per-use financing models are expected to grow in 2024.
Overall, 2024 is set to be a year of significant developments and innovation in the fintech industry, driven by AI advancements, the opening up of banks to cryptocurrencies, regulatory changes, and shifts in customer preferences and needs.
