2024 is expected to be a landmark year for the fintech sector, according to Swiss-based financial advisory organization deVere Group. The organization identifies key trends that will shape the industry, including the rise of crypto-currencies and central bank digital currencies, increased usage of artificial intelligence, soaring demand for mobile payments, cyber security, and global financial inclusion.
- The rise of crypto-currencies is predicted to continue in 2024, with growing acceptance by traditional financial institutions and regulatory clarity expected to contribute to their mainstream adoption. Crypto-currencies are increasingly seen as a way to diversify investment portfolios and facilitate cross-border transactions.
- The rise of central bank digital currencies (CBDCs) is set to be a defining trend in 2024, as several central banks around the world explore or develop their own digital currencies. CBDCs offer governments greater control over monetary policy and the potential to improve the efficiency of cross-border payments.
- The increased usage of artificial intelligence (AI) by fintech firms is expected to enhance customer experiences, streamline operations, and make more informed decisions. AI is also being used in risk management and fraud detection, providing indispensable tools for identifying and mitigating potential risks.
- There will be soaring demand for mobile payments in 2024, driven by the convenience and accessibility of conducting transactions with smartphones and digital wallets. Fintech companies are likely to invest further in developing user-friendly mobile payment solutions in order to foster a cashless society and provide access to digital financial services.
- Cyber security, including biometrics, will be a major focus for fintech firms in 2024. With the advancing threats of cybercrime, robust security measures and advanced biometric technologies such as fingerprint and facial recognition will be used to protect sensitive financial information and enhance user authentication.
- Fintech will play a pivotal role in global financial inclusion by extending financial services to the unbanked and underbanked populations. Innovative solutions such as mobile banking, microfinance, and blockchain are expected to bridge the gap and contribute to poverty reduction and economic empowerment.
The convergence of these trends is expected to reshape the way financial transactions are conducted and redefine the global financial ecosystem. The fintech sector is poised for growth and innovation in 2024, with crypto-currencies, CBDCs, AI, mobile payments, cyber security, and global financial inclusion driving transformative changes within the industry.
