Unveiling the Top Fintech Trends of 2024

In examining fintech trends for 2024, the EMR, ‘Global Fintech Market’ report states  ‘The fintech market is estimated to witness a healthy growth in the forecast period of 2024-2032 to reach USD 492.81 billion by 2032.’

Josh Howarth, in ‘Exploding Topics”-10 Critical Fintech Trends (2023-2025) 10 Critical Fintech Trends (2024-2026) (explodingtopics.com)

‘In 2023, the global fintech market attained a value of approximately USD 194.1 billion’.

The total value of the global fintech market is estimated to hit $305 billion by 2025.’

According to Deloitte’s, “2024 Financial services industry outlooks’ Financial services outlooks for 2024 | Deloitte Insights‘ The reflection of the market which is the fusion of high interest rates, increased regulatory pressure, and concerning changes in inflation—are trends many senior financial services industry (FSI) leaders have seen before.’

Regulation regarding Generative AI, Increased Fraud and Embedded Finance

As forecasted by the experts in technology and regulated industries along with the research conducted by the global consulting companies.  For 2024, importance is emphasised for finance managers to be more agile than ever in the areas of generative AI, increased fraud and cyber risk, move to cloud and embedded finance.

Furthermore, the ascending use of machine learning to enhance credit decision models and borrower spending as well as behaviour to determine risk patterns is further accelerating market advancement. Moreover, the  use of robotic process automation to boost consumer experience, decrease expenses, is to amplify the market in the foreseeable period.

Robotic Process Automation:

‘RPA technology is also referred to as “software robotics.” It’s useful for automating repetitive, rule-based, time-consuming tasks that don’t require human brainpower.’

Josh Howarth, in ‘Exploding Topics”-10 Critical Fintech Trends (2023-2025) 10 Critical Fintech Trends (2024-2026) (explodingtopics.com)

Grand View Research forecasts  the ‘RPA market will grow at a CAGR of 38.2% from 2022 to 2030’.Robotic Process Automation Market Size, Share Report 2030 (grandviewresearch.com)

By 2024, Gartner predicts CFOs who have driven hyperautomation technology adoption and redesigned operational processes will be saving 30% on their organisation’s operational costs.

In the Fintech Times, ‘Operational Fintech Trends in 2024 and Beyond’ Operational Fintech Trends in 2024 and Beyond; With 28Stone, Ideagen, Finfra and Nexpay | The Fintech Times

Ben Dorks, CEO of the software solution provider for regulated industries, Ideagen, illustrates how he also expects investment in AI to take precedence:

“For the financial sector, investment to be in risk management and the use of AI. Inadequate governance, management practices and audit failures are often the cause of failures. Having the appropriate systems and software in place to ensure compliance will be important in 2024.”

Moreover, as regulation proceeds to evolve, fintechs will be required to set their operations to counter Anti-Money Laundering (AML), Know Your Customer (KYC), increasing Compliance costs and counter-terrorism financing safety measures This warrants the use of nova technology to improve business efficiencies.

Companies that fail to comply with reporting, face enormous fines. ‘In 2021, JP Morgan was forced to pay $125 million for failing to follow correct compliance controls.’

Rapid growth of Artificial Intelligence and Machine Learning:

Fintech companies can flourish by implementing strategies to guarantee their AI policy is examined thoroughly and stringently.

As mentioned earlier, “Artificial Intelligence and Machine Learning are further trends forecasted to outline the industry’s landscape, steering automation and tailored customer experiences, transporting assistance through AI-driven chatbots and virtual assistants.

Allied Market Research predicts it will be worth $64 billion by 2030, posting a CAGR of 32% from 2021 to 2030. Welcoming API integration and open banking will promote partnership between fintech companies and banks, encouraging coherent data collaboration and increase in business services.

AI in Banking Market Size, Share, Growth, Trend | Analysis 2030 (alliedmarketresearch.com)

Embedded Finance:

‌Embedded finance will continue to evolve so that we could see further integration and amalgamation of the financial sector into non-financial sector. External businesses to the financial sector will progressively consolidate financial services into their existing client engagement.

‘The embedded finance market currently sits at $63.2 billion and is predicted to grow to more than $248 billion by 2032.’ ‘Exploding Topics”-10 Critical Fintech Trends10 Critical Fintech Trends (2024-2026) (explodingtopics.com)

According to Obelo, In 2024, the ‘buy now, pay later’ market size is expected to further expand, to reach a total of $80.8 billion. Along with fintechs regulators are also looking at this sector.

The EMR report, states ‘The ‘global buy now pay later’ market size reached approximately USD 8.01 billion in 2023. The market is estimated to grow at a CAGR of 27.6% in the forecast period of 2024-2032, reaching a value of around USD 69.65 billion by 2032’. Buy Now Pay Later Market Share, Analysis, Growth 2024-2032 (expertmarketresearch.com)

Another foreseeable trend is fintech companies offering fintech solutions along Green Initiatives. Companies and consumers begin to put more importance on environmentally sustainable practices, the fintech industry is benefiting from the opportunity. Joro, Trine are companies Stripe are all companies invested in the Green initiative.

 Navigating these trends will be significant for Fintech companies to prosper and remain competitive in the continuously changing financial technology landscape.

Sources

• Josh Howarth, Jan 11th 2024, 10 Critical Fintech Trends (2023-2026) Exploding Topics. 10 Critical Fintech Trends (2024-2026) (explodingtopics.com)
• Tom Bleach-(August 2023)-‘Operational Fintech Trends in 2024 and Beyond With 28Stone, Ideagen, Finfra and Nexpay’ The Fintech TimesOperational Fintech Trends in 2024 and Beyond; With 28Stone, Ideagen, Finfra and Nexpay | The Fintech Times
• Expert Market Research –‘2024 Global Fintech Market Report’ Buy Now Pay Later Market Share, Analysis, Growth 2024-2032
• Deloitte-‘2024 Financial services industry outlooks’Financial services outlooks for 2024 | Deloitte Insights‘
• Obelo-Fintech trend report 2024
• Grand View Research report-   .Robotic Process Automation Market Size, Share Report 2030 (grandviewresearch.com)
• Stanford University (April 2021) ‘Gartner Forecasts Worldwide Hyperautomation-Enabling Software Market to Reach Nearly $600 Billion by 2022’ Gartner Forecasts Worldwide Hyperautomation-Enabling Software Market to Reach Nearly $600 Billion by 2022
• Allied Market Research- AI in Banking Market Size, Share, Growth, Trend | Analysis AI in Banking Market Size, Share, Growth, Trend | Analysis 2030 (alliedmarketresearch.com)