Financial technology, or fintech, is expected to be a key theme in 2024, with several trends that will reshape the industry. These trends include:
- Blockchain integration and the rise of cryptocurrencies: The use of blockchain technology in finance can create secure and transparent transactions and records. The increasing acceptance of cryptocurrencies is expected to reshape the global financial landscape.
- Intelligent Automation: The use of artificial intelligence and machine learning to automate tasks in finance, such as data entry, fraud detection, and customer service.
- Increased use of AI by fintech companies: The integration of AI into services like robo-advisors and customer service chatbots is expected to revolutionize financial services delivery. Fintech-generated AI, or generative AI, will also become a trend.
- The Rise of Central Bank Digital Currencies: Central bank digital currencies (CBDCs) are expected to emerge as a major trend in the fintech industry in 2024. Several central banks are expected to develop and launch their own digital currencies.
- Big data and analytics: The use of big data technologies to collect, store, process, and analyze large amounts of data in the financial sector. This enables financial institutions to gain insights into customer behavior patterns, market trends, and improve operational efficiency.
- An increase in embedded financial solutions and mobile payments: The integration of financial services into non-financial platforms or applications that users already use or interact with, providing convenience and accessibility.
- Focus on global financial inclusion: Fintech companies are playing a pivotal role in extending financial services to the unbanked and underbanked around the world, leveraging innovative solutions such as mobile banking, microfinance, and blockchain.
Experts recommend that financial institutions stay abreast of these trends and take a proactive approach to embracing change in the fintech industry.
