Top FinTech Trends to Watch in 2024
Introduction
With the inception of technological innovations, financial institutions are no longer the same. The scope of fintech is increasing now and then, it seems to be the most investment rounds worldwide. All thanks to global quarantine and lockdowns, the need for digital financial procedures is stimulating daily. Not to mention, more and more companies are found to be actively adopting some of the most amazing latest emerging technologies just to meet the expectations of the end user and increase the satisfaction rate. Well, will you believe me if I say that the market is expected to reach $698.48 billion in 2030?
Keeping up with the ever-increasing pace of change is pretty difficult isn’t it, not scaling up now can be a big mistake. So it’s now or never when it comes to adopting new fintech industry trends, especially in 2024.
The following post offers you some of the best and most tried-and-tested fintech trends that must be considered for enhancing the overall efficiency of the company and also you can easily gain a competitive edge in no time.
Fintech - The History Says
Now if I say for the first time in human history accessing money has never been so easy, people can access money from wherever they want. And this is true because of fintech technology. Now Fintech means finance + technology, when organisations tend to make the most of technology to enhance financial services this is what Fintech truly means. No wonder the trend seems to be growing rapidly and becoming more influential in our daily lives. Some of the best examples of the fintech revolution include the rise of investment applications to cryptocurrency digital payments and online lending
Now for those who have this misconception that the collaboration of finance and technology is pretty new, well it’s certainly not! Do you remember when credit cards were invented? Yes, it was invented back in 1950 and 20 years later, ATM came into existence. So in one way or another, fintech technology keeps on evolving. And a new breakthrough in the field of technology whether it's machine learning or data science, does have a solid impact on the financial industry’s digital transformation.
The entire banking industry is becoming transparent like never before. Understanding these roots of fintech means you can have better insights regarding what exactly the future holds. Without any further ado, let’s focus on the top most-rated fintech trends to consider in 2024.
Top Fintech Market Trends for 2024
Fintech trends are many and have been around for a while, some of which might stay for the long haul and some are just gaining traction. We have pinpointed some of the most important ones which will form the fintech landscape in 2024 and a few years down the line.
#1 Virtual Bank Cards
All kinds of digital debit and credit cards, money in the e-wallet are known as virtual bank cards. These kinds of services can be offered by both Neobanks and traditional banking institutions all across the globe.
Neo banking seems to be growing at a fanatic pace, now what are they? These banks are much like conventional banks; the only difference is that they do not incorporate any kind of physical location. Yes, and still these banks are well-equipped with all kinds of features and functionalities of a traditional bank. In fact, we are living in an era where several fintech organisations have shifted their focus from traditional banks to NEO banks only and why not since doing so ensures cost-effective measures and easy access. And above all, Neo banks are more specifically focusing on quality instead of quantity.
Source - https://www.techmagic.co/blog/fintech-trends/
So coming back to virtual cards, one of the most amazing advantages to consider here is that customers can pay in-store. This is usually done using NFC or on any online platform. This means in other words, one no longer has to keep worrying about losing money. So it can be a safe way out to prevent from traditional credit/debit card fraud schemes. You see when you purchase using these virtual cards, the authorization is done via the customer’s banking app, in case of a compromised situation, cards can be voided in just a couple of seconds.
#2 Embedded Finance
The next fintech trend one must look into is embedded finance. What if I say the concept of embedded finance could be the next or upcoming revolution in the finance era?
So what is embedded finance? It’s all about seamlessly integrating and collaborating financial products and services into non-financial platforms just to smoothen everyday tasks and activities. This trend is supposed to successfully break down all the silos between finance as well as several other industries. More or less, users are offered convenient access to the required financial services without fearing about dealing with a standalone bank and financial app. Some of the best examples to consider are interest-free loans. These loans are supposed to be offered at the time of checkout. In fact, here user-friendly one-click payment apps or branded checking accounts and debit cards can be or should be taken into consideration for core members.
Not just financial but several non-financial organisations are found offering traditional banking services with the assistance of open banking API. And with such fintech trends coming your way, revenues can be expected to skyrocket by 2025.
#3 Buy now, Pay Later 2.0
The very next exciting fintech trend to take into account is buy now and pay later. Over a few years, the concept of BNPL has gained momentum and no wonder this trend specifically assists well in driving sales. As the name implies, this concept enables customers to make use of goods while successfully paying for them and this assures long-term customer loyalty.
And people don’t have a problem because they are successfully spending the money which they don’t have at all. The only concern is overspending can result in high debt. However, there are certain organisations which seem to have tweaked the concept a bit, they don’t try to earn from the buyers, instead, they tend to make a profit from merchant commissions. So in other words customers no longer have to pay those unwanted charges to traditional banking institutions.
#4 Alternative Lending
The very next fintech trend that needs to be considered right away is alternative landing or P2P or peer-to-peer lending in other words. This usually takes place via online platforms, especially the ones which make absolute use of technology, especially the latest tech to collaborate with borrowers, especially the ones which are underserved via traditional lending institutions or if there is a loan investor who is looking for yield-generating investments. The lending model is the result of peer-to-peer unsecured consumer loans.
So whether it is debt consolidation or paying down revolving credit card balances, alternative lending can be quite of help. So what makes alternative lending a huge success?
Robust ACD model
Well-customised products
User-friendly infrastructure and delivery channels
So whenever you want to incorporate this financial trend in particular just make sure you establish a suitable technology infrastructure, featuring designing and construction of an appropriate tech stack.
#5 Stablecoins: The new breed of cryptocurrency
The next interesting fintech trend to take into account right away is stablecoins. Now stablecoins are one kind of cryptocurrency whose value is tied to another currency, commodity, or financial instrument. Stablecoins in general tend to have the high volatility of the most popular cryptocurrencies, including Bitcoin (BTC), which has made crypto investments less suitable for everyday transactions.
These are way more useful than volatile cryptocurrencies and can be successfully used as a core medium of exchange. Now are these important? Of course, they are! As a matter of fact, Stablecoin successfully plays a very crucial role in the entire cryptocurrency ecosystem. These tend to offer a wide range of benefits such as sending payments anywhere in a pretty short period. The only issue is their prices are pretty unpredictable and can fluctuate widely.
Stablecoins now evolved and tend to value cryptocurrencies to more stable assets, usually fiat currencies. This also results in increased adoption over time.
#6 Capital market digitalization
The next amazing fintech trend that one shouldn’t be missing is capital market digitalization. The capital market industry is thoroughly based on data and with the incorporation of digitalization, financial organisations now tend to enhance efficiency, reduce costs and pass on the benefits to their customers. So what one can expect here?
New geographic markets
Regulatory changes
Ever-increasing convergence of traditional and alternative business models.
Easy collaboration with the Internet of Things, smart contacts, artificial intelligence, advanced analytics and visualisation, cloud technology adoption, blockchain, robotic process automation, and a lot more.
So what are the possibilities?
Increased operational leverage
Automated and accurate decision-making
Reduce fraud and scope of unnecessary risk
Streamlining operating models
Regulatory supervision is less complicated
#7 AI and ML for financial technologies
Who hasn’t come across chatbots? After all, these are some of the hottest and most amazing financial trends to take into account. The ultimate reason behind the insane popularity of chatbots is that they successfully ensure customer self-service, reducing the workload for customer support. This is only possible due to the insane back-support of ML and AI in the finance industry.
Your artificial intelligence seems to have a proven track record for amazing management work especially in regards to risk and fraud prevention. Now there is no denying the fact that fraud cases have skyrocketed to a pretty great extent and machine learning technology successfully assists in identifying potential fraudsters just in case there is no serious harm caused.
Also, AI now seems to have been replacing professional financial advisors and wealth managers. Well, not completely experts can make the most of AI to enhance their service area and save them from getting stuck among monotonous tasks and focus more and more on core competencies.
Final Words
So that’s all for now! Fintech trends are many such as Robo-advisors and DeFi, open banking, blockchain, cryptocurrency, payment gateways, biometric authentication, voice payments, gamification, smart contact, etc but the aforementioned ones are pretty much in vogue, especially for 2024 and a few years down the line. I hope the following post was worth the read. In case you find this one insightful, do help us in reaching more and more readers.