Jeremy Baber, CEO of Lanistar, has highlighted some of the key trends for 2024 that will significantly influence the fintech industry. With fintech services continually transforming, accelerating, and enhancing our financial practices, the arrival of 2024 will present a host of promising openings.
Baber points out that Gen Z's adoption of fintech service and the escalating use of digital wallets have driven innovations in the sector. As well, the adoption of AI is pushing the industry forward. There was much speculation about the development of super apps across Europe in 2023, stirring interest in the potential trends and advancements 2024 might offer.
According to Baber, "In 2023, fintech demonstrated that they were a leading contributor to sustainability initiatives tackling the climate crisis, but they must also lead by example in addressing their carbon footprint issues. The fintech industry must embrace the value of sustainability and continue to steer clear of greenwashing. In 2024, governments must support fintech development to allow for a move away from legacy (resource-heavy) services and encourage the industry to support green businesses through loans or credit with preferential rates and other incentives."
The CEO also highlighted the impact of proposed regulations on AI, a technology that has been instrumental in reshaping every sector and holds enormous potential. He added, "AI undoubtedly improves customer experience, and any proposed regulation will have to preserve, rather than damage the service it offers customers. AI developments enhance credit and application approval processes to streamline the customer journey."
Baber highlighted the increased accessibility and scalability of the Banking of Things (BoT) in the fintech industry, facilitated by the advancement of cloud computing, mobile technologies, digitisation of payments, and the growing number of smart devices consumers have access to. "This emerging trend has the potential to create a range of possibilities for consumers and banks alike. In 2024, for fintech to benefit from BoT, device manufacturers and leading tech developers must work together to standardise and improve IoT practices," said Baber.
Moving into the new era, economic instability and rising inflation have compelled fintech companies to enhance customer-centric approaches and innovation while emphasising cost-efficiency and profitability. Baber warned, "The economic instability in the UK will negatively impact fintech in 2024 as the ability for investors to support the industry is diminishing due to the higher cost of funds. In order to progress, the UK Government needs to recognise the long-term benefit of the sector and support investment in the industry.”
In anticipation of 2024, Baber concludes that "AI development will have the biggest impact across the fintech industry, maximising customer experience and data security, helping the sector grow. The UK Government must recognise the value of the fintech industry as we enter the new year, supporting investment and green business. Digital payments continue to dominate the payments scene, and exciting advancements will emerge across the fintech industry in 2024."