2024’s Forecasts: Top 10 FinTech Trends
Date: 15 November 2023
Author: FINTECH Circle
Explore the financial landscape of 2024 with our exclusive insights. Delve into the Top 10 FinTech trends that are set to shape the industry in the coming year, offering a glimpse into the innovative advancements and transformative changes ahead. Stay ahead of the curve as we predict the future of financial technology.
1. Mainstream Adoption of Central Bank Digital Currencies (CBDCs)
Many countries are thinking about making digital versions of their money called CBDCs. By 2024, it’s likely that some countries will have already started and finished this process.
These digital currencies will make paying for things easier, lower the cost of transactions, and help more people who don’t have a bank account to join the financial system.
2. Decentralised Finance (DeFi) Goes Mainstream
More and more, we’ll see the growth of decentralised finance (DeFi) platforms. These let people use financial services without the usual middlemen.
These DeFi projects will get better and start offering more advanced things like loans, borrowing, and insurance. This will get more people interested and shake up the regular financial system.
3. AI-Driven Personalised Financial Services
As artificial intelligence and data analytics get better, financial services will become super personalised. FinTech companies will use smart computer programs to study how each person spends money, their risk level, and how they like to invest.
This will help them give specific suggestions for budgeting, saving, and investing that match each person’s preferences.
4. Quantum Computing Revolutionises Financial Modeling
Quantum computing, with its extraordinary ability to solve complex problems, is set to make a big difference in finance. By 2024, we anticipate that major financial institutions will start using quantum computing for things like understanding risks, optimising investment portfolios, and catching fraud. This technology is going to completely change how financial data is handled and studied.
5. Enhanced Security & Authentication Measures
With more and more financial transactions happening online, having strong security is crucial. Biometric methods, such as facial recognition and fingerprint scanning, will become more common.
These methods provide a secure and easy way for people to get into their financial accounts and do transactions.
6. Rise of Embedded Finance
In 2024, embedded finance, or embedded banking, will grow a lot. This means that companies not in finance, like online shopping sites, ride services, and social media, will include banking services right on their platforms. This way, users can do money stuff easily without switching to other apps.
7. Tokenisation of Assets
Thanks to blockchain tech, turning things like real estate, art, and other not-easy-to-sell stuff into digital tokens (asset tokenisation) will keep getting more popular.
This makes it possible for more people to own a part of these things and move them around more easily. By letting more folks invest, it opens up new chances for different kinds of investors.
8. Regulatory Evolution & Collaboration
The people in charge of making rules (regulatory bodies) will change their ways to keep up with the fast-moving FinTech world. They’ll encourage new ideas while still making sure people are safe and the money system stays strong.
FinTech companies and the rulemakers will work more together, making rules that help and change as things in FinTech change. This will make a friendlier and more flexible set of rules.
9. Expansion of Open Banking Ecosystems
Open banking, where banks and approved FinTech companies share data securely, will get even bigger. By 2024, these open banking systems will be well-established, giving people more power over their money info and letting them use lots of cool new financial things.
10. Green FinTech & Sustainable Investments
As more people care about climate change and the environment, FinTech solutions focused on being eco-friendly will pop up. FinTech services will start to include things like environmental, social, and governance (ESG) factors in how they suggest investments. This way, people can choose investments that are good for the planet & make a positive impact.
The FinTech world is about to have another big year, and technology is a key player in changing how money services work. The predictions we talked about give us an idea of what might happen in 2024.
From more countries using digital money to the growth of decentralized finance and super-smart personalised money services, the future of FinTech looks like it will be faster, easier to use, and more creative.
But, it’s really important to make sure these changes also keep things safe, private, and follow the rules so everyone can benefit from a money system that works for everyone.