Fintech Trends forecasted for 2024
Marie Bosnjak
Founder/Director @ Global Fintech Talent Solutions Ltd / Org Design/Diversity & Inclusion /Fintech Coach/ Women in Tech
Readiness for fintech companies?
According to the EMR, ‘Global Fintech Market’ report, ‘The fintech market is estimated to witness a healthy growth in the forecast period of 2024-2032 to reach USD 492.81 billion by 2032.’
Josh Howarth, in ‘Exploding Topics”-10 Critical Fintech Trends (2023-2025) states that
‘In 2023, the global fintech market attained a value of approximately USD 194.1 billion’.
The total value of the global?fintech?market is estimated to hit?$305 billion?by 2025.’
According to Deloitte’s, “2024 Financial services industry outlooks’
‘The reflection of the market which is the fusion of high interest rates, increased regulatory pressure, and concerning changes in inflation—are trends many senior financial services industry (FSI) leaders have seen before.’
As forecasted by the experts in technology and regulated industries along with the research conducted by the global consulting companies. ?For 2024, importance is emphasised for finance managers to be more agile than ever in the areas of generative AI, increased fraud and cyber risk, move to cloud and embedded finance.
Furthermore, the ascending use of machine learning to enhance credit decision models and borrower spending behaviour to determine risk patterns is further accelerating market advancement.
Moreover, the use of robotic process automation to boost consumer experience, decrease expenses, is to amplify the market in the foreseeable period. ‘RPA technology?is also referred to as “software robotics.” It’s useful for automating repetitive, rule-based, time-consuming tasks that don’t require human brainpower.’
Josh Howarth, in ‘Exploding Topics”-10 Critical Fintech Trends (2023-2025)
Grand View Research forecasts ?the ‘RPA market will grow at a?CAGR of 38.2%?from 2022 to 2030’.
By 2024, Gartner predicts CFOs who have driven hyperautomation technology adoption and redesigned operational processes will be?saving 30%?on their organisation’s operational costs.
In the Fintech Times, ‘Operational Fintech Trends in 2024 and Beyond’
Ben Dorks, CEO of the software solution provider for regulated industries, Ideagen, illustrates how he also expects investment in AI to take precedence:
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“For the financial sector, investment to be in risk management and the use of AI. Inadequate governance, management practices and audit failures are often the cause of failures. Having the appropriate systems and software in place to ensure compliance will be important in 2024.”
Moreover, as regulation proceeds to evolve, fintechs will be required to set their operations to counter Anti-Money Laundering (AML), Know Your Customer (KYC), increasing Compliance costs and counter-terrorism financing safety measures This warrants the use of nova technology to improve business efficiencies.
Companies that fail to comply with reporting, face enormous fines. ‘In 2021, JP Morgan was forced to pay?$125 million?for failing to follow correct compliance controls.’
Fintech companies can flourish by implementing strategies to guarantee their AI policy is examined thoroughly and stringently.
As mentioned earlier, “Artificial Intelligence?and?Machine Learning are further trends forecasted to outline the industry’s landscape, steering automation and tailored customer experiences, transporting assistance through AI-driven chatbots and virtual assistants. Allied Market Research predicts it will be worth?$64 billion?by 2030, posting a CAGR of 32% from 2021 to 2030. Welcoming API integration and open banking will promote partnership between fintech companies and banks, encouraging coherent data collaboration and increase in business services.
Embedded finance will continue to evolve so that we could see further integration and amalgamation of the financial sector into non-financial sector. External businesses to the financial sector will progressively consolidate financial services into their existing client engagement.
‘The embedded finance market currently sits at?$63.2 billion?and is predicted to grow to more than $248 billion by 2032.’ ‘Exploding Topics”-10 Critical Fintech Trends
According to Obelo, In?2024, the?‘buy now,?pay later’?market size is expected to further expand, to reach a total of $80.8 billion. Along with fintechs regulators are also looking at this sector.
The EMR report, states ‘The ‘global buy now pay later’ market size reached approximately USD 8.01 billion in 2023. The market is estimated to grow at a CAGR of 27.6% in the forecast period of 2024-2032, reaching a value of around USD 69.65 billion by 2032’.
Another foreseeable trend is fintech companies offering fintech solutions along Green Initiatives where companies and consumers begin to put more importance on environmentally sustainable practices, the fintech industry is benefiting from the opportunity. Joro, Trine are companies Stripe are all companies invested in the Green initiative.
?Navigating these trends will be significant for Fintech companies to prosper and remain competitive in the continuously changing financial technology landscape.
Marie Bosnjak-Director/Founder of Global Fintech Talent Solutions Ltd
Please review our website: https://global-fintech-talent-solutions.com . ?
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