With the collapse of the cryptocurrency market, new financial rules, and the emergence of “digital-only” banking, 2023 was undoubtedly a thrilling year for the financial sector.
The fintech sector is developing in line with market trends to satisfy global regulatory requirements as well as client desires and company objectives. We anticipate powerful technological advancements shaking up the finance sector in 2024, allowing it to improve client experiences, reinforce business cases, and increase revenue. Let’s look at the fintech trends that will rule the market this year and how they will influence businesses, user experiences, and governmental policies across the world.
Embedded Finance
Businesses can boost customer happiness and income by providing comprehensive offers throughout a client’s journey with embedded finance. Financial services, including banking, credit, investing, processing payments, lending, and insurance are included. Customers who use the “buy now, pay later” (BNPL) option can order goods now and pay for them later.
Alternative Finance
Alternative finance, also known as Alt Finance, has a bright future because it is currently worth $6.62 billion. Financial services created outside of traditional banks are referred to as “alternative finance.” Research reveals the global BNPL transaction value will reach $576 billion by 2026.
SaaS Platform
The term “Software as a Service” (or “SaaS”) refers to a method of distributing software through the Internet. Businesses are liberated from difficult hardware and software management and installation. The systems offer products more quickly and with better customer service, increasing user and customer satisfaction.
AI Technology
Researchers anticipate that the financial industry will keep implementing AI techniques in 2024. Banks are among the most financially successful organizations adopting this technology. Around 2030, AI technology will cut bank operational costs by 22%. This could result in future savings of up to $1 trillion.
Automation of difficult and valuable processes is made possible by artificial intelligence (AI). Fintech companies can fight cybercrime, money laundering, and fraud by using AI to augment chatbot engagements, customize client care, and drive infrastructure decisions. Who has access to different financial services and how will they be more heavily influenced by AI algorithms used in financial software development?
RegTech
One of the industries with the most regulations worldwide is the financial one. By offering cutting-edge technological solutions for compliance-related problems, RegTech is anticipated to upend the regulatory environment this year. The introduction of alternative finance, blockchain technology, and AI will attract the attention of governments all over the world to the FinTech sector.
Businesses may now almost completely automate the compliance process thanks to the development of RegTech. RegTech will advance its solutions to help financial institutions identify and mitigate risks in the upcoming years with the aid of cloud technology, machine learning, and big data analytics. Research predicts that the RegTech sector will grow up to 200% by 2026.
Conclusion
It’s difficult to predict how this year will turn out. But there is no doubt that 2024 will be a pivotal year for the financial sector, marked by technological change, new rules, and market movements.
