Top Fintech Trends In 2024 Every Business Must Monitor

By Author: Dinelka Mahaliyana
Total Articles: 37
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Due to the outsized post-pandemic growth, higher interest rate environment, and uncertain macro, investors in the FinTech/Payment market were mostly negative in 2023. Investors flocked to safe-haven FinTech firms with appealing long-term business and financial models, low capital expenditure, and strong cash flow production to provide startup funding (www.equitymatch.co). Thereby, many investors in platforms like EquityMatch are eyeing FinTech startups that embrace the upcoming trends to provide their attention next year.

Despite a difficult 2023 for fintech, with startup investment slowdowns, value cutbacks, and an economic slump, entrepreneurs are all set to enter 2024 with new perspectives and new ways to face what is ahead.
What may we expect in the following year?

The birth of generative AI was a watershed moment for the globe, ushering in a new era of business and consumer products.

Artificial Intelligence (AI) research began in the 1950s, but it has only recently that AI has advanced to the point where it can have a substantial impact on the world (Villaester, 2023). Generative AI is a very ...
... new sort of AI that is only now being utilized to create real-world products and services. However, it is rapidly improving and integrating into end-user experiences.

AI is only one of the most intriguing trends to watch in 2024. It is accompanied by advancements in payment rails, cybersecurity, blockchain, and the shifting regulatory regulations that accompany them.
So, let’s take a closer look at the Fintech trends businesses must monitor…

Top 4 Fintech Trends in 2024

#1 AI and Machine Learning (ML)

The AI-powered digital era has arrived, and it is transforming the way individuals work and how things are compared to one another. Over half of fintech companies are now adopting AI as a major differentiator to create new goods and services. This will definitely catch the eye of investors for startup funding.

With models making it easier and less expensive to integrate AI capabilities into digital goods, the business world will see more banks and fintech companies double down on AI activities in the hopes of releasing solutions that generate incremental income.

In 2024, the world will witness a broader spectrum of AI applications, such as creditworthiness assessment, robo-advisory services, algorithmic trading, and risk evaluation and management in both banking and fintech. This tendency will not only distinguish digital products but will also improve the overall user experience. Thus, adopting these trends will enable startup investments easily.

#2 Cost-effective use of Stable Coins

Stablecoins have long been used by traders as trading capital and settlement tools.

However, the world has seen an increasing acceptance of stablecoins in the business sector in recent years, thanks to innovative fintech companies offering simpler and faster ways to convert into fiat currencies, leading to increased adoption with money transfer services now offering stablecoins for cross-border transfers (Fintech, 2023).
It is also anticipated that a more diverse checkout experience than ever before, as more and more businesses accept stablecoins as payment.

#3 Green Banking and Sustainable Finance

Fintech and banks are now reacting to the demand for more environmentally friendly financial solutions. Many investors are eyeing solutions that embrace these concepts to provide startup funding. The Corporate Sustainability Reporting Directive of the European Commission requires banks and insurance businesses to provide more information on how they operate and cope with environmental change. This is a wonderful step because it will allow customers to make better decisions about the financial institutions they support.

Some fintech and banks are already ahead of the curve in terms of sustainability, with several Neobanks and payment providers all making ESG transparency promises and developing more environmentally conscious financial goods and services.

Promoting digital payment options is one way that fintech and banks are making finance more sustainable. Traditional payment methods, such as cash and credit cards, are more environmentally friendly than digital purchases. Digital payments, for example, do not necessitate the creation of physical cards or the usage of paper receipts.

Fintech and banks are also making finance more sustainable by lowering their environmental effect. Some banks, for example, have committed to becoming carbon-neutral and eliminating waste.

These trends are likely to influence customers' purchasing decisions positively. Customers are more inclined to choose financial institutions that are devoted to social and environmental responsibility as they become more aware of the importance of sustainability.

#4 Shift of Revenue Models to SaaS

With interchange erosion lowering the number of interchange fees fintech companies can make, the shift to alternative revenue models, particularly the Software as a Service (SaaS) model from traditional software distribution, is increasing in fintech.

This trend will continue to gain traction in 2024!

The SaaS model allows fintech companies to recoup their significant investment in new goods and services, as well as provide income certainty while boosting user accessibility. Furthermore, the scalability of SaaS solutions enables businesses to handle their expansion flexibly.

The Bottom Line

Trends are constantly shifting.

However, there are ongoing developments that fintech must accept to remain relevant and competitive. As 2024 approaches, now is the time to consider how these developments may influence consumer behavior and purchasing decisions.

Many Fintech companies in platforms like EquityMatch (www.equitymatch.co) are eyeing these trends to become leading players next year while gaining startup funding. Navigating the fast-shifting digital market will always be difficult, but developing trends give up new opportunities for fintech and solutions that can remain relevant will win.