- Nigel Green of deVere Group anticipates “unprecedented growth and innovation” in the FinTech sector in 2024.
- The key contributing factors include the rise of cryptocurrencies and Central Bank Digital Currencies (CBDCs), as well as the increased use of artificial intelligence (AI) and mobile payments, and a heightened focus on cybersecurity and financial inclusion.
The fintech industry is set for a transformative and dynamic period in 2024, driven by the growing acceptance of cryptocurrencies like Bitcoin and the development of Central Bank Digital Currencies (CBDCs), according to Nigel Green, CEO of deVere Group.
Cryptocurrencies are expected to play a significant role in diversifying investment portfolios and facilitating cross-border transactions, thereby reshaping the global financial landscape. Green states that the mainstream adoption of cryptocurrencies is being boosted by greater regulatory clarity across various jurisdictions, alongside increasing support from traditional financial institutions.
Green also predicts an important turning point for the use of CBDCs which are currently being developed or actively explored by several central banks. These digital currencies allow governments to have better control of monetary policy and streamline financial transactions. They are also expected to reduce the reliance on cash and improve the efficiency of cross-border payments.
AI, described as a key innovative force in Fintech, will see its usage significantly increase come 2024, enabling Fintech firms to enhance customer experiences, streamline operations, and make informed decisions. AI technologies are revolutionising the delivery of financial services and are becoming crucial tools in risk management and fraud detection.
Additionally, the rising demand for mobile payments is another noted trend. The convenience offered by digital wallets is leading consumers towards digital transactions using their smartphones, resulting in Fintech companies investing in developing more user-friendly mobile payment solutions.
As cybersecurity threats advance, Fintech companies are predicted to place bigger emphasis on enhancing security measures, particularly using biometric authentication methods such as facial and fingerprint recognition. Biometric technologies provide additional layers of security, thereby boosting consumer trust and maintaining the integrity of digital financial transactions.
Also anticipated is the global drive for financial inclusion. Innovative solutions like mobile banking and blockchain technology would potentially provide financial services to unbanked and underbanked populations worldwide, contributing to poverty reduction and economic empowerment.
