Priya patelThe article discusses the key trends that are expected to shape the fintech industry in 2024. Some of the key points highlighted in the article are:
- Generative AI, particularly large language models (LLMs), will continue to make breakthroughs in the fintech space. These LLMs, such as BloombergGPT, DocLLM, and FinGPT, are designed to perform tasks like sentiment analysis, news classification, and question-answering in the financial sector.
- Several fintech companies are expected to go public in 2024, including Klarna, Stripe, Revolut, Chime, Bitpanda, Circle, and Zilch.
- ChatGPT-style chatbots specialized in answering financial questions are becoming more common in banks and fintechs.
- The interest rate turnaround resulting from the post-COVID inflation is expected to impact fintech, with savings platforms and alternative payment options gaining popularity.
- Biometric authentication, such as facial recognition, is becoming increasingly important for securing digital finances.
- Embedded finance, where products come with integrated financing, will play a major role in 2024, extending beyond the traditional financial sector to areas like PropTech and ClimateTech.
- More banks are opening up to Bitcoin and other cryptocurrencies, and there is an increasing demand for regulated technologies (RegTech) that support compliance with complex regulatory requirements.
- There is a renewed interest in cryptocurrencies, with Bitcoin and other crypto companies expected to experience a bull run in 2024.
- Account-to-account (A2A) payments, where transactions take place directly between accounts without intermediaries, are expected to gain popularity.
- “Buy Now Pay Later” (BNPL) is predicted to expand into the B2B sector in 2024, and pay-per-use financing models are emerging to accommodate occasional usage.
The article provides an overview of these trends and emphasizes their potential impact on the fintech industry in the coming year.
