2024 Fintech Innovations: Slow Development to a Giant Leap
- Peter Johnson
- Dec 5, 2023
- 5 min read
At this point in time each year, the fintech industry sharpens its vision, gazes in the future, and tries to predict the revolutionary advancements that will shape the year prior. It is tempting to take either extreme, to be conservative or be daring and make bold predictions. Perhaps something like having banks on Mars by August could be seen?
We can guarantee that this article won't contain any information about Martian cash machines but it will feature our take on the major trends in banking and financial technology that are expected in the near future., will be the most effective approach for making these needed changes.
Progressing slowly instead of rapidly will be the most effective way to achieve these necessary adjustments.
It's possible that the most significant developments in 2024 will be based on trends from 2023 that didn't quite take off as expected. This doesn't mean, however, that there won't be any exciting new arrivals.
Initially, embedded payments will be a focus. Fintech businesses will persist in developing fresh embedded payment solutions - not only improving existing payment gateways or offerings such as digital wallets, but also striving for more extensive incorporation of payment services into formerly nonfinancial platforms. For awhile now, the merits of embedded payments have been promoted - bringing together financial products with advantages including loyalty programs to give customers more worth - and in 2024, this will be more apparent.
It is anticipated that decentralized finance will continue to grow in 2024. Last year, the concept of NFTs (non-fungible tokens) sparked excitement once again, with the hope of ample progress in 2023. Although there has been notable utilization of this sector, some opposition such as stricter laws has hindered advancement. In 2024, we can anticipate companies tackling the new regulatory requirements and furthering the potential of this technology.
Without omitting open banking, it would be remiss of us. Despite not being a modern trend, there has been increasing enthusiasm for it. We can look forward to the availability of extra APIs (application programming interfaces) and developments of new programs within 2024. As an example, Apple Pay has already unveiled its open-banking alternative, and organisations will persist in exploring further solutions in this sector in order to enhance user experience and reduce friction during transactions.
Even as the trends in banking and fintech evolve during the upcoming year, there remains a noticeable gap - the presence of artificial intelligence (AI).
Fintechs will experience both efficiency and risk associated with AI.
Based upon industry knowledge and speculation, many outlooks are formulated; however, it is possible that a tool, pattern, or technology may emerge in a manner that was not anticipated.
By 2022, AI had already been deployed in payments for a substantial amount of time, but the launch of ChatGPT kicked off an even bigger trend. It wasn't merely ChatGPT's ability to assist with children's homework that made it so remarkable; it was its capacity to make AI, previously a tool that was too expensive or intricate for anyone other than data experts, available to the masses.
By the year 2024, we can anticipate that fintech companies will be using advanced ChatGPT (big language) models in order to bolster efficiency, which will be implemented in tasks such as creating code, drafting corporate documents, and more. These cost-saving measures could possibly lead to better financial results for businesses that utilize more refined chatbots, which would allow customers to acquire more customized services.
AI can facilitate a smoother payment process or identify the best payment method for a customer, thus creating a largely effortless experience by 2024. is expected.
It is predicted that more cooperation among financial firms will occur in 2024.
In 2024, security will be of even greater importance to banking and fintech organizations as a result of the AI revolution. With access to increasingly sophisticated tech now in the hands of a much larger audience, those who were potential cyberthreats but lacked the technical know-how to breach a business now can utilize tools to circumvent early biometrics.
AI can be an important resource to assist security teams in defeating malicious intrusion attempts; for instance, utilizing natural language processing (NLP) to feed models with various datasets to keep potential attackers at bay. Still, more is needed. As a result, we anticipate that financial firms will work together in even closer cooperation in 2024 for the purpose of improving cyber-risk reduction.
The industry would benefit from taking a healthy step forward by legally sharing data with a purpose of pursuing progress. Through collaboration, there is potential to reduce risks and enhance anti-fraud, anti-money laundering (AML) and cybersecurity protocols.
If one financial institution obtains knowledge about a cyber organization, this data could be distributed to other firms for the purpose of safeguarding against shady financial transactions. However, in order to be able to enjoy these advantages, there must be a shift in the attitudes concerning data regulation. This is an issue the industry will confront in 2024. is a crucial part of our mission.
Providing wider availability to everybody, in every place, is an important aspect of our goal.
The trends in banking and fintech in 2024 will be impacted largely by the ever-evolving technology, however, it is likely that the changing consumer requirements will be the most influential factor.
It is widely accepted that purchaser requirements have shifted. The ease of use that mobile devices grant people gives them quick access to a wide variety of possibilities. As a result, banks and other financial services must now focus on providing customers with swift satisfaction. This will drive financial services to strive to provide services with the least amount of effort.
Moreover, financial institutions must heed consumer demands for heightened convenience. This entails enabling remittances and international transfers for underserved populations. How do we make digital finance and payment options available to all?
This is why we can anticipate traditional payment methods like debit and credit cards to be replaced by other forms of payment, such as eCash and digital wallets, that provide people with more choices, reliability, security, and availability.
By 2024 and beyond, it will prove increasingly challenging for financial institutions and fintech firms to overlook the social and environmental expectations of customers; these individuals are becoming more informed about how businesses promote ESG (environmental, social, and governance) causes and will push the products and services they use to make significant changes.
Consequently, banks and fintechs will have to shift from simply discussing change and take action, instituting concrete steps to help combat the climate crisis. forward in technology
A significant advancement in technology
It is beneficial to have an outlook on the upcoming 12 months, but it is just as essential to look to the future and speculate on what could form the fintech world in the next few years. This is when quantum computing should be taken into account.
The prospect of computing at speeds exponentially faster than ever before is both thrilling and somewhat alarming. Utilizing it to decipher codes or malicious entities looking to disturb established systems that have been harmonious for years, quantum computing stands to be the next monumental transformation in the realm of financial technology.
Blending together AI, robotics, and quantum computing provides us with a view of a potential tomorrow that could be even more thrilling than we could have imagined.
Going forward, the trends in the fintech industry over the next five years will grow with steady innovation, in addition to a quantum leap in the field.
From now until 2024, the fintech sector will experience steady advances, as well as a sudden, large-scale jump in development.
Comments