2024 Fintech predictions: A look forward for the industry

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2nd December, 2023 No Comments

Today is the first Monday of December, and as the end of the year is fast approaching, we’re looking at what 2024 has in store for the industry.

Speaking to Finastra, UpSlide, and SkyParlour, we took a peak at what they think the next year will look like.

Isabel Fernandez, EVP, Lending at Finastra:

“2023 shone a light on the importance of agility. Banks around the world were forced to navigate volatile global markets and supply chains, changing customer behaviors and disruptive technologies…”

We do not expect this to ease in 2024, and yet many banks are struggling to adapt quickly enough.”

Whether they are providing retail loans to consumers, or working capital finance to corporates, financial institutions will face continued demands from their customers for quicker, more seamless, and personalised lending experiences.

“To meet these demands and avoid being on the back foot, institutions need to prioritize modernization – whether that be adopting a micro-services approach, redeploying to the cloud or consuming ‘as a service’. By upgrading their technology, banks will be better equipped to adapt to changing market requirements, remain competitive, have access to better quality data, and securely decrease their time to value when bringing new services to market.” 

For me, the biggest tech trend of the moment, and one that will only continue to accelerate in 2024, is Gen AI. At Finastra, we’re very optimistic about its significant benefits for our customers and our people.

Chloe Stevens, Senior Content Manager at UpSlide:

“Amidst constant macroeconomic shifts and uncertainty, businesses across all sectors are hoping to do more with less in 2024. Most of our clients in the finance industry are looking to efficiently allocate their resources and budgets to stay competitive next year…”

“It won’t come as a surprise to hear that looking ahead, many of our clients are planning on exploiting innovative technologies, like generative AI or automation, to help transform their existing workflows and drive greater efficiency.”

The impact of leveraging AI and automation tools means we’ll see even more organisations reducing the time their workforce spends on repetitive, mundane tasks – particularly when it comes to content generation. Instead of spending hours updating or analysing data, sourcing materials, and formatting documents, they will be able to redirect their focus to more strategic, purpose-led work, like nurturing client relationships or data analysis.”

In the finance industry, where quality, accuracy, and client-centricity are paramount, these innovations will be the driving force behind a more agile, competitive, and client-focused landscape in 2024.

Kimberley Waldron, co-founder of SkyParlour 

I think the past year has really emphasised the increasing maturity of the fintech sector. The era of the ‘overnight unicorn’ is over, with businesses now being forced to prioritize long-term strategies over short-term gains...”

Thankfully, businesses with sustainable growth models are now thriving by focusing on financial products that deliver real-world benefits. Ultimately, it feels like a step in the right direction after a few difficult years.”

This shift has been caused in part by more discerning investors and consumers. As we enter 2024, individuals are increasingly interested in solutions that address specific societal and environmental challenges and less enamoured by products that feel like innovation for innovation’s sake. This is encouraging a new wave of purpose-driven innovation to the fore, which is likely to have a massive impact on the fintech sector in the next year.”

The companies that lead this charge will not only provide innovative services but also demonstrate a clear understanding of the regulatory landscape to ensure compliance and build trust. In the next year, the integration of robust ESG strategies into business models across fintech will likely become standard practice, as the market increasingly favours companies with responsible and transparent operations.”

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