As we step into 2024, the fintech landscape is set for some exciting transformations.
With technology evolving at breakneck speed, experts are predicting developments that could redefine how we interact with money. From advancements in blockchain technology to innovative payment solutions, the future of fintech promises enhanced efficiency, security, and accessibility.
Let’s jump into it…
Our Experts
- Kathy Gormley, AML Product Manager, Resistant AI
- Brian Gaynor, VP of Product and European CEO at BlueSnap
- Ivo Gueorguiev, Co-Founder of Paynetics
- Brad Hyett, CEO at phos
- Frank Krieger, Chief Information Security Officer at Mambu
- Andrew Hawkins, Chief Executive Officer, UK & Europe at Shieldpay
- Nirav Patel, CEO of Andaria
- Gabriel Le Roux, CEO and Co-Founder of Primer
- Charlie Tafoya, CEO & Co-Founder at Chronograph
- Paul Rossini, Co-Founder and CEO at AssetPass
- Gareth Jefferies, Partner at RTP Global
- Nikita Lomov, CBDO at RIPE Capital
- Kate Leaman, Chief Market Analyst at AvaTrade
- Michael Sinidich, EVP and General Manager at Navan Expense
- Pavel Shynkarenko, Founder and CEO at Solar Staff
- Adam Zoucha, Managing Director EMEA at FloQast
- Barry Stearn, VP at Global Program Owner, FreedomPay
- Nick Botha, Global Payments Manager at AutoRek
- Ansgar Finken, Chief Risk Officer (CRO) at Solaris
- Patrick Gauthier, CEO at Convera
- Bruno Natoli, CEO at Mia-FinTech
- James Lynn, CEO at Currensea
- Greg Waisman, Co-Founder and COO at Mercuryo
- Zahra Alubudi, COO & Co-Founder at Levenue
- Philipp Buschmann, Co-Founder and CEO at AAZZUR
- Martin Cheek, MD at SmartSearch
- Karine Martinez, Head of Sales at Edenred Payment Solutions
- Lukas Enzersdorfer-Konrad, COO at Bitpanda
- Jan Syrinek, Head of Product, Resistant AI
- Sam MacPherson, CEO and Co-founder at Phoenix Labs
- Tyler Adams, CEO and Co-Founder at COZ
- Karen Barrett, CEO and Founder at Unbiased
- Jacob Plaster, CTO at Io.finnet
- Bundeep Rangar, CEO at Fineqia
- Rodolphe Ardant, CEO and Founder at Spendesk
- Otávio Tranchesi, Industry Lead at AppsFlyer
- Sigita Kotlere, CEO at Nectaro
- Callan Carvey, Head of Global Operations, at Cleo
- Janine Hirt, CEO at Innovate Finance
- Phil Larratt, Director of Investigations at Chainalysis
- Torben Andersen, Director of Engineering at Pleo
- Philippe Bekhazi, Founder and CEO at XBTO Global
- Daniel Pell, Vice President and Country Manager, UKI at Workday
- Neil Kadagathur, CEO of Creditspring
- Richard Prime, Co-Founder & Co-CEO of Sonovate
- Sho Sugihara, CEO and Co-Founder of Fuse
- Matt Russell, CEO of Zest
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Kathy Gormley, AML Product Manager, Resistant AI
“For banks and payment companies in the UK, APP fraud will remain a top priority in 2024 as they prepare to implement the Payment Systems Regulator (PSR) new reimbursement requirements. October 2024 is the current target date for the implementation, however, there are still many unknowns that will impact how firms operationalise this important but complex requirement, meaning the ambitious deadline is viewed by many as unachievable.
“A major challenge with the new measures is the complexity of balancing the need to protect consumers from fraud while not causing excessive friction, and while there is support for the swift reimbursement of victims of fraud, the current five day SLA for reimbursement will require nothing short of operational and investigative wizardry from the sending and receiving firms to meet this. As scam volumes continue to rise, robust onboarding and strong inbound payment detection strategies will become a key tool for firms to ensure they protect their brands and maintain trust. The use of AI as part of these controls will be a key differentiator for firms.”
Brian Gaynor, VP of Product and European CEO at BlueSnap
“Payment orchestration will be the biggest trend in 2024, but it’s going to take on a new optimised focus.
“Traditionally, payment orchestration was simply middleware software businesses use as a tool to help manage multiple payment services, none of which are fully controlled by that software. These legacy payment orchestraters neither move money nor determine how payments are routed. The business still works with multiple gateways but uses the middleware to control them.
“But the new optimized, modern payment orchestration you will see gain popularity in 2024 allows businesses to consolidate to one vendor that includes payment orchestration and payment processing without sacrificing payment optimization. The logic and payment capabilities are fully controlled by a single platform that actually moves the money, helping to reduce operational and technical debt while increasing authorization rates and reducing costs.
“Since a modern payment orchestration platform brings together the payment processing, all payment use cases, geographies, payment optimization and additional capabilities in a single integration and a single account with modular capabilities that can be turned off, turned on and configured to meet your payment needs, it is critical in fueling many of the other payment trends you can expect to see in 2024.”
Ivo Gueorguiev, Co-Founder of Paynetics
“Fintechs have a unique opportunity to address evolving consumer and business needs in the payment landscape. While there has been a slowdown in new fintech startups, digital banks and niche fintechs are actively reshaping the financial services industry by providing accessible mobile banking solutions through user-friendly apps.
“One underexplored area is supporting vulnerable members of society, a key area for social policy and business opportunity. Fintechs can use embedded finance tools to enable the public sector to enhance its product and service offerings. This includes services like prescription payments, benefit disbursements, and budget management to cater to local communities for financial convenience, simplicity, and inclusion.
“Additionally, collaborations between neobanks and specialised fintech firms will become increasingly prominent. Rather than building from scratch, partnerships offer a rapid route to enriching the suite of financial products and services for consumers. As consumers want more than just payments and friendly apps, partnerships benefit from reduced time to market and upfront investments, something fintechs will seek to leverage in the future.”
Brad Hyett, CEO at phos
“Payment technology is evolving rapidly, especially for small and medium-sized businesses. We are witnessing a transformation where preferred payment methods and online experiences are being incorporated into the store environment, just like they are in ecommerce. This includes things like dynamic currency choice and buy now pay later (BNPL) being available on in-store devices or terminals, just like you would get now in a digital checkout. There’s a whole range of different ways to pay depending on preference.
“I foresee incentivisation becoming a key strategy. Businesses may start linking loyalty point schemes to specific payment methods that are more cost-effective for merchants. This encourages customers to opt for those methods.Open banking providers are getting creative by offering value-added features to make payments more enticing for consumers. More diverse and customizable payment terminals, perhaps even modular arrangements tailored to the specific needs of businesses, could be launched in the near future.
“In this context, the point of payment is becoming increasingly sophisticated, with biometric options like facial recognition and palm scanning gaining prominence. Consumers are growing more comfortable with these methods, as they are already using them to unlock their mobile devices and access banking apps. So I think we’ll start to see that incorporated into the payment flow as well.”
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Frank Krieger, Chief Information Security Officer at Mambu
“In 2024 we will inevitably see a rise in AI-powered cyber attacks, but equally an increase in ways AI can help to prevent them.
“We’ve already seen neobanks like Monzo start implementing AI technology to help their customers recognise in real-time if someone from Monzo is really calling them. This in-app feature neutralises the risk of deep fake phone calls we’ve seen consumers previously fall victim to when being asked to give up sensitive information. In 2024 we can expect to see more tools like this utilising AI entering the market, and an increasing amount of current market players incorporating AI into their products, making them more secure and ultimately safer for the end user.
“It’s clear that there are benefits that can be obtained from using AI within the security product space. But with the emergence of any new technology, there will be an increasing threat and risk from AI-powered cyber-attacks. By its nature, the more it is used, AI will continue to reduce the complexity of performing attacks which in turn increases the risk for financial providers.
“Ultimately, 2024 will be a pivotal year for both AI-powered defence and attacks.”
Andrew Hawkins Chief Executive Officer, UK & Europe at Shieldpay
“In 2024, the challenge of raising capital for growth in the face of persistent high interest rates and geopolitical uncertainties looms large. This means that only well capitalised with a solid business model and an adept team will survive. On the flip side, FinTechs that are focused on solving real problems for their customers and executing effectively, have a real opportunity to not just survive, but to thrive in this challenging landscape.
“In the midst of macro-economic shifts and rising geopolitical uncertainty, it is highly unlikely that the total amount of capital being deployed to invest in companies will recover to pre-pandemic levels in 2024. FinTech as a sector has matured relative to the emerging interest in AI and greentech, so the challenge of a shrinking overall quantum is compounded by FinTech taking a smaller share. However, I am optimistic and strongly believe that companies armed with innovative ideas, a credible strategy and a capable team will be able to raise the capital they need to grow.”
Nirav Patel, CEO of Andaria
“In 2023, a number of regulatory changes and the continued increase in use of digital payments influenced the growth of in-house banking, Buy Now Pay Later, and digital wallets. But one of the most disruptive and valuable developments is undeniably Embedded Finance.
“Looking ahead, we expect to see a higher level of interest in embedded finance by fintech start-ups, but that would lead to authorities being more diligent and the establishment of tighter regulations for firms. Banks, which are traditionally seen as lenders that lack tech innovation, and therefore are poised at risk of being left out, will start entering the market – with HSBC being the latest one wanting a slice of the pie.
“At this rate, 2024 could be an alarming bell for a lot of payment intermediaries who realise that embedded finance causes disintermediation leading to the elimination of third parties and thus resulting in reduced costs for the end users. The focus across the board will be on contributing significantly to advancements that propel the entire embedded finance industry forward in the next 12 months.”
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Gabriel Le Roux, CEO and Co-Founder of Primer
“The payments sector is expected to undergo a significant shift in 2024. Driven by a desire to mitigate risks such as downtime and dependence on a solitary vendor that could face financial challenges, merchants will move away from the frequently fragmented and monolithic payments model. Instead, they will opt for a more unified and streamlined experience across the commerce journey. This transition will foster an ecosystem that gives merchants the freedom and flexibility to grow.
“To keep up with the fast-moving market evolution in 2024, merchants will also look to increasingly leverage data analysis and AI. Reducing time and complexity whilst increasing certainty is the magic formula for all merchants. This is where AI will come into play, helping merchants spot payment trends more effectively than the human eye, allowing them to focus on other important tasks at hand.”
Charlie Tafoya, CEO & Co-Founder at Chronograph
“As widely discussed, Generative AI is poised to transform most aspects of modern economic activity, and the same holds true for the private equity industry: we expect the beginnings of significant changes to the anatomy of private equity operations, including automation of routine tasks, redefined workstreams, and new opportunities to accelerate value realization and time to insight. However, for many private equity investors, the greatest barrier to the adoption of AI tools is access to standardized data at scale. Without digitally organized, properly structured information, private equity investors lack the necessary foundation to capitalize on many AI use cases.
“Private equity investors who are proactively enhancing their data management infrastructure by partnering with technology innovators are best set up to benefit from the burgeoning opportunities generative AI offers. As the technology continues to become more sophisticated and powerful in 2024, private equity investors with outdated data management systems risk falling behind and must upgrade their digital infrastructure to remain competitive. “
Paul Rossini, Co-Founder and CEO at AssetPass
“While the conversation around the cryptocurrency market in 2023 has been shrouded by the news of FTX, financial advisors and wealth managers cannot overlook the growing importance of digital assets in their clients’ portfolios. The price of Bitcoin has surged by over 100% since the start of 2023 and the tokenization of real-world assets has exploded exponentially; hence many high net worth individuals (HNWI) are diversifying their wealth into these asset classes. However, what they and many of their financial advisors are unaware of and have overlooked is the perfect storm approaching. Significant sums are being invested without due consideration to the digital legacy succession process and it’s a fact HNWIs are getting older.
“As a result, some beneficiaries of digital wealth face being locked out of their inheritance because secure processes were not put in place to enable the transfer of these digital assets. This is also the case for corporate digital succession. Family businesses have for years relied on traditional paper-based methods for succession, which do not work in today’s digital landscape, and a digital solution is key to the continuation and survival of these long-running businesses. These new asset classes, together with new digital IDs and wallets, will undoubtedly play a more prominent role in wealth management in 2024, so it’s essential that financial advisors take the time to understand this relatively new but critical issue and put the steps in place to ensure they and their clients don’t get caught in the storm.”
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Gareth Jefferies, Partner at RTP Global
“The last few years have been interesting to say the least in fintech, both in consumer and in B2B. The public fintech companies with tried and tested business models have weathered the storm better than those that had prioritised growth at all costs over solid economic foundations, and there is a growing appreciation in both public and private markets for the nuances around business model quality. I believe this will continue into 2024 as some of the at-scale fintech winners — Stripe, Revolut, Klarna, Checkout, Plaid and the likes — start to prepare for and launch IPOs.
“Here in Europe, there is a huge amount of talent now fully vested and leaving some of these at-scale success stories and that is heralding a new generation of early stage companies with experienced founders at the helm. I expect the continued recent commercial success of Zopa, Monzo, Klarna and others to also play its part fanning the flames of European fintech in 2024 and beyond.”
Nikita Lomov, CBDO at RIPE Capital
“FinTech, evolving rapidly, extends its scope beyond payments and retail into wealth management and crypto. While markets like retail and SMB banking have primarily become battlegrounds for the marketing budgets of large fintechs rather than hubs for disruptive innovation, new segments will be explored by fintech startups and incumbents in 2024.
“We’ll witness an increased expansion of FinTech into wealth management. According to The Economist, global wealth is projected to double by 2030, offering a unique opportunity for both fintech startups and established firms like Goldman Sachs and JPMorgan Chase to claim a larger share of the expanding wealth management industry. This expansion will rely on AI, embedded finance, and Open APIs.
“Moreover, the boundaries between crypto and traditional FinTech will continue to blur in 2024. Despite scandals surrounding FTX and Binance, there’s a notable surge in cryptocurrency adoption, especially among institutional investors like hedge funds. The integration of blockchain and asset tokenization into traditional finance holds the promise of enhancing market efficiency.”
Kate Leaman, Chief Market Analyst at AvaTrade
“With 2024 fast approaching, the fintech industry is expected to evolve significantly in the new year. Firstly, there is likely to be a substantial rise in the adoption of blockchain technology across multiple sectors, not limited to cryptocurrencies. This includes its application in banking for more personalised services as well as swifter transactions through Decentralised Finance (DeFi).”
“Digital banking is also likely to undergo considerable advancements. By using AI, banks might offer more personalised services and we might see a rise in neobanks – digital-only banks – offering user-friendly, cost-effective banking solutions.
“Furthermore, the wide-scale adoption of contactless payments, initially hastened by the pandemic, is anticipated to continue. This includes the use of mobile wallets, contactless credit/debit cards, and even biometric payment methods like fingerprint or facial recognition systems.
“Financial institutions could also increasingly implement AI and machine learning for risk management. These technologies can analyse large volumes of data to predict and manage credit risks, market risks, and operational risks more efficiently.
“As the digitisation of financial services continues to surge, cybersecurity will become more critical. Indeed, it is likely companies will invest more in advanced security technologies to protect themselves against cyber threats and guarantee the data privacy for their customers.”
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Michael Sinidich, EVP and General Manager at Navan Expense
“Collaborations are the latest innovation transforming fintech. In the wake of SVB and rising interest rates, both traditional banks and fintechs are at a crossroads, needing to innovate while establishing credibility with consumers and businesses alike. Major banks are shifting towards becoming ‘one-stop shops’ for their customers rather than just another service or partner they need to manage. This shift presents a golden opportunity for fintechs, sparking a renaissance in the financial ecosystem. The collaboration between traditional banks’ established legacy and fintechs’ rapid innovation will give rise to novel business models, redefining industry standards and pushing the boundaries of what’s possible.
“These collaborative relationships promise enhanced experiences for customers, seamlessly blending the reliability of traditional banks with fintechs’ ingenuity. It signifies a departure from competition to embrace a new era defined by collaboration, marking the industry’s maturity. As banks and fintechs recognize the value of working together, the industry is set to enter an era where collective innovation becomes the driving force, ensuring sustainability, adaptability, and customer-centricity in a dynamic global economy.”
Pavel Shynkarenko, Founder and CEO at Solar Staff
“In recent years, working in the Fintech industry has become increasingly challenging for several reasons, the primary one being the strengthening of regulations at both the global and national levels. This is expected to continue in 2024, posing difficulties for many startups, especially those providing cross-border services. The growing formalization and standardization will persistently affect even ‘free’ sectors, such as the cryptocurrency market.
“Numerous Fintech startups will face challenges related to pricing, including from major market players like Wise, which can offer prices that are inaccessible to smaller or newer entrants.
“Finally, the third trend that will continue in 2024 is a decrease in investments. Already in 2023, the investment volume in the sector fell by 36% year over year (S&P Global Market Intelligence data), and this trend will persist next year. As a result, there will be fewer new Fintech startups, as seen in 2023 during the YC Alumni Demo Day, where only a few out of 200 startups were in the Fintech sector. However, we can expect niche-focused startups to emerge in areas with less bureaucracy and regulation.”
Adam Zoucha, Managing Director EMEA at FloQast
“Artificial intelligence is transforming the way we work. While there are concerns about the use of this technology, AI is a powerful ally that can help support understaffed teams, enhance strategic thinking and boost employee potential.
“The accountancy sector is experiencing a labour shortage, and this is where AI can step in to process data, provide valuable insights and streamline everyday tasks. Improved efficiency frees up accountants time so they can focus on complex financial analysis. I would anticipate that we will increasingly see accountants embrace AI tools, meaning they can be more strategic and focus on organisational long-term success.
“And, it’s likely finance teams will continue to undergo digitisation over the coming 12 months. A dynamic approach to financial transformation will put organisations one step ahead. Tools that advise on financial preparation, compliance roadblocks and strategic planning will ensure businesses are ready for the next phase of their growth journey.”
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Barry Stearn, VP at Global Program Owner, FreedomPay
“One of the biggest payment innovations of today is digital wallets. It took contactless payments 10 years to reach their tipping point – at which all consumer groups and demographics became comfortable with using them – and now we’re set to witness a nearly £138bn shift to digital wallets over the next decade as 46.3% of shoppers look for even easier ways to pay. With the rise of digital wallets, retailers are striving to unlock new levels of personalisation across channels, putting smartphones at the heart of it.
“But the real power of this payment method is that it serves as an ‘identity strategy’ which links to data analysis: once you know who your customer is, you can drive messaging that is relevant to them back through a digital channel.
“We’ve come a long way in terms of digital payments, but they only mark the beginning of a much larger discussion around the concept of horizontally integrated payments and an enriched omnichannel approach to commerce. In the future, we’re going to see more payment methods driven by the consumer, democratisation of payments, and increasingly advanced payment options, such as token and biometric technology.”
Nick Botha, Global Payments Manager at AutoRek
“2024 will see the next natural phase in real-time payments. Modern consumers already expect instant payments, with payment innovations like QR codes and Request to Pay leading to irreversible changes in the way that end users make payments today. The direct link between real-time payments and economic growth is opening governments’ eyes to its potential – leading to a central push towards widespread adoption next year and beyond.
“Instant payments are set to become ubiquitous for both national and regional payments networks as central banks continue developing real-time infrastructure to satisfy consumer demand. Evolving developments in Central Bank Digital Currencies (CBDCs) and work on emerging payments infrastructure will cement real-time payments as more than a ‘nice-to-have’ in most markets, and ensure they are well on the way to becoming a mandatory part of bank and payment firms’ propositions.
“But the central push towards real-time payments will add pressure to the back and middle office as firms battle to accommodate higher transaction volumes. Firms will need to ensure their existing infrastructure and systems are set up to process payments in real-time and keep up with consumers’ ever-evolving spending habits.”
Ansgar Finken, Chief Risk Officer (CRO) at Solaris
“We will undoubtedly see consolidation in the fintech sector in 2024, partly fueled by a more cautious fundraising environment in which backers have become more discerning. But this is certainly not a straightforward story of decline. While I predict that the overall number of fintech firms in Europe will stabilise, this could lead to a more benevolent operating and funding landscape for those with a strong customer base and a road-tested proposition.
“More comfort comes from the fact that traditional banks are now inseparable from their fintech partners, relying on these firms to meet customer demand for a better and better user experience.
“Meanwhile, banking licenses will become harder to obtain as regulators shift into a ‘risk-off’ mode amidst a challenging interest rate environment. Regulatory hurdles, such as licensing, can be a powerful barrier for new entrants, further solidifying the position of more established fintech firms. This should make compliance in effect a core USP for any regulated fintech”
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Patrick Gauthier, CEO at Convera
“I believe currency volatility will increase in 2024. In 2022, central bank monetary policies diverged as they reacted differently to address inflation. However, these policies converged again in 2023. I now expect monetary policies to diverge again in 2024 if inflation reduction trends continue.
“If inflation data confirms a sustained downward trajectory in the US, I anticipate the Federal Reserve may raise interest rates faster than the European Central Bank. This policy divergence could lead to higher currency volatility in 2024.”
Bruno Natoli, CEO at Mia-FinTech
“Traditional banks will need to transform into FinTech’s if they want to remain relevant in 2024 and beyond. The only way they can do this is by embracing the Open Finance model, an interconnected network of financial and non-financial companies sharing real-time data via Open API’s. Covering a range of services such as investments, insurance, loans and payments, Open Finance is aimed at improving financial inclusion, promoting competition and innovation, and enhancing the overall customer experience.
“The financial landscape has never been so competitive. The demand for personalised services, targeted products and the best possible user experience has left traditional banks not only competing with themselves, but also having to worry about non-financial companies and challenger banks who have embedded financial offerings into their own proprietary services.
“But instead of relying on their brand equity, traditional banks need to embrace change and be part of the embedded finance revolution, harnessing real-time data from various sources to drive the development of innovative financial products. To help manage this complex ecosystem of third-party providers, platform engineering will be a skill in huge demand for traditional banks looking to bridge the digital gap.”
James Lynn, CEO at Currensea
“After household finances taking a battering throughout the cost of living crisis, 2024 has to be the year of collaboration with fintechs looking to partner with traditional banks, rather than competing against them. The last 12 months has proved highly challenging for both businesses and consumers but the benefits of enhanced partnership activity are clear – broadening the reach of innovative solutions can not only support innovation but also deliver enhanced value for customers.
“Consumer Duty is a big focus of 2023 for many firms and this won’t change anytime soon. Financial services forms will strive to continue to improve transparency for customers – at Currensea, we look to improve transparency by providing travellers with a simple solution to reduce foreign exchange fees, whilst our newest product, BuildMyCreditScore, aims to boost financial inclusion across the UK.
“Collaboration and partnerships are the key to improving transparency and financial inclusion. Through cross-industry partnerships, fintechs and incumbents have the opportunity to provide consumers with simple, innovative and effective products that offer great value and empower consumers.”
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Greg Waisman, Co-Founder and COO at Mercuryo
“There are two pivotal trends that will dominate the fintech landscape as we step into 2024. The first revolves around the much anticipated Bitcoin halving event that will be taking place in April 2024. These events have historically been associated with significant bullish trends in the cryptocurrency market, as the reward for mining new blocks gets reduced by half and the scarcity of BTC increases. This impending halving, occurring against the backdrop of an evolving financial ecosystem, is likely to catch a lot of interest and catalyze investment activity in the crypto space.
“The second trend that promises to shape the fintech landscape next year is the launch of Bitcoin Exchange-Traded Funds (ETFs) – another event that the crypto market is eagerly looking forward to. The introduction of Bitcoin ETFs is poised to bring a new wave of institutional and retail investors into the crypto market. Due to the way they are designed, ETFs represent a more accessible and traditional investment opportunity for investors interested in Bitcoin yet unwilling to manage digital assets directly. This development could be a major step in fostering a more mainstream acceptance of cryptocurrencies, bridging the gap between traditional finance and the decentralized world.”
Zahra Alubudi, COO & Co-Founder at Levenue
“Funding for European technology companies will plunge by nearly half this year, and this has catalysed a shift in startup growth trajectories. With VC funding drying up, there is no longer as much pressure on founders to pursue hyper-growth strategies, with their demands for rapid expansion. Instead, most companies are now focusing on becoming more capital efficient and on their profitability. That’s not to say that startups won’t be pursuing growth in 2024; most are still aiming to grow their products and offerings to stay competitive. But they are shunning “growth at all costs”, which became a common strategy between 2019 and 2021.
“As a result, many are looking at more sustainable financing models to support their ongoing product development and enhancement. That’s why I anticipate we’re going to see a bigger shift towards the adoption of alternative financing models in 2024, such as revenue-based financing, where SaaS and subscription-based companies can leverage against their forecasted revenue. These alternative financing models will enable founders to continually support their organisation’s growth without having to meet the hyper-growth expectations typical of equity investors.”
Philipp Buschmann, Co-Founder and CEO at AAZZUR
“Fintech investment will return following absence in 2022/23. With high inflation, rising interest rates, geopolitical tensions and high-profile failures, the tech sector has suffered, leaving depressed valuations since 2022. However, the outlook is more positive for 2024 as VC funding is seemingly rebounding as investors have greater confidence in seeing a return. In addition, I predict there will be a continued consolidation between smaller fintech players and corporates going to buy fintech companies that fit their own fintech agendas. There are so many avenues to explore in fintech and combining them all into one can deliver poor results, especially as the majority of venture-backed fintechs fail.
“We will start to see buyers specialising and being choosier when buying fintech companies in 2024. Products and services will become much more diversified and integrated. As the fintech sector grows so will customer demand. We’ve already seen social media platforms like TikTok integrate embedded banking and services and solutions will adapt to Gen Z who are forthcoming when it comes to financial education. AI will play a useful role in helping them meet regulatory compliance and banks and fintechs will have to work together to regulate and be compliant. World of Fiat and crypto will normalise cohesively.”
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Martin Cheek, MD at SmartSearch
“AML compliance will form a huge part of how FinTech evolves in 2024 and beyond, because authorities across the world are continuing to tighten the rules and regulations surrounding it.
“AML compliance ensures regulated businesses, like those in the accounting, banking legal, financial services or property industries, stay compliant with authorities’ requirements and laws – which are in place so businesses detect criminal behaviour relating to money laundering and financial crime. The only way firms can do this effectively is by using a digital compliance solution which is fast, reliable and has everything in one place. Comprehensive platforms should allow businesses to carry out multiple verification checks on individuals and businesses relating to customer due diligence, sanctions, sources of funds and more.
“But at the moment, many AML software providers aren’t hitting the mark in terms of their offerings, and businesses are still using different methods of software for different requirements. Or, relying on manual methods of verification against documents like passports and bank statements – which is how criminals slip through the net. With the ever-changing regulations in the UK and the government’s commitment to fighting these financial crimes, all regulated industries will require innovation and a compliance partner that will evolve with them.
“For example, cryptocurrency transactions are notoriously difficult to monitor and criminals use them to hide the sources of their illegal funds through various tactics. In recent months, there has been a lot of talk about criminals using Stablecoins in particular due to their accessibility, and the need for regulation around them. I expect that AML compliance software will evolve next year to analyse crypto transactions much more effectively and easily. AI has advanced significantly this year, and I expect that AML compliance software will integrate with it more to increase the effectiveness of features like ongoing transaction monitoring – for example detecting anomalies or repeated patterns.”
Karine Martinez, Head of Sales at Edenred Payment Solutions
“BaaS has been on quite a rollercoaster over the last few years. Lauded as ‘the next big thing in fintech’ many people saw a significant opportunity in the business model, but a flurry of recent issues has shown it’s not an easy thing to deliver.
“In 2024 I think we’ll see a bigger focus from BaaS companies and their customers on reliability and compliance capabilities. The very core of the solution is to take care of these things so customers don’t have to worry, and this will be the only priority for businesses looking to outsource in 2024. Anything extra, no matter how new and shiny, will take second place. But this should lead to good things.
“It will lead to clearer expectations of what partners need from BaaS companies and payment solutions providers, more reliable and compliant services, and ultimately better and more trusted partnerships between providers and their customers. It’s going to be an exciting year as BaaS continues to mature and develop.”
Lukas Enzersdorfer-Konrad, COO at Bitpanda
“This year was a major turning point for the way the financial system views digital assets. People have been investing in digital assets for nearly a decade but regulation, infrastructure, and adoption have finally risen to a level that large financial institutions cannot ignore. Given the conversations we are already having with several major European banks about how we can help them to offer trading, and the crypto ETFs we are going to see in January, 2024 is going to be a huge year for crypto.
“Not just because we will see greater stability and security for investors, but because new ways to invest will attract new investors. New investors will drive more innovation, and who knows where that will lead. I am excited.”
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Jan Syrinek, Head of Product, Resistant AI
The rise in automation correlates directly with a heightened risk of fraud. It is imperative to incorporate technology to scrutinize the origin, integrity, and behavioral patterns associated with submitted documents, especially considering the pivotal role documents play in various financial services.
“Context gained from a document forgery perspective becomes a valuable addition to contemporary intelligent document processing, enhancing its capability to combat financial crime effectively. By adding this crucial layer of support, businesses can swiftly identify and address malicious intent, thereby fortifying their defenses against the escalating threats of fraud in an increasingly automated landscape.”
Sam MacPherson, CEO and Co-Founder at Phoenix Labs
“DeFi’s three main pillars are lending, decentralized exchanges, and synthetic assets (stablecoins). Looking at the current DeFi landscape, I believe that we will see the bulk of liquidity converge into a power law distribution of these primitives. In addition, I think that innovation will continue at the margins, but due to the open-source nature of DeFi, the improvements could be absorbed by the market leader.
“I also believe that RWAs will continue to experience rapid growth due to the high-interest rate environment. The RWA trend is inevitable, but the speed at which it arrives is determined by the interest rate environment.
“My final, slightly more subjective prediction relates to the bull market. Through my analysis of the Maker balance sheet from the past five years, the current level of leverage we are experiencing hasn’t been seen since 2021. I think that we will see a bull market starting soon and that it will definitely arrive in 2024.”
Tyler Adams, CEO and Co-Founder at COZ
“2024 will be the year of crypto because it will focus on new, exciting ideas that could lead to mass Web3 adoption. “Crypto” is still an overwhelming, confusing, and undefined term for many. Giving people a touchpoint to Web3 through something tangible and useful will work to onboard the masses to Web3 and highlight the benefits of decentralization, blockchain, and crypto. I believe that this will be achieved through NFI (Non-Fungible Item) technology.
“2023 highlighted to many that NFTs are not just for collecting and trading but also have real-world use cases that could easily become an everyday feature in people’s lives. The evolution of NFT to NFI technology establishes a link between both the physical and digital realms. This is of great use to artists, for example, who can ensure that their work is attributed to them through the inclusion of NFI technology in their pieces. As we move into 2024, I believe that the new year will provide an emphasis on tangible technology in an effort to onboard more people to Web3 and introduce them to the many benefits of blockchain.”
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Karen Barrett, CEO and Founder at Unbiased
“2024 is going to be the year that ‘matchmaking’ technology really comes into its own within the fintech sector.
“There’s been a huge rise in people of all ages turning to tech to connect them with tailor-made information and ideas – supporting anything from finding a partner to sourcing recommendations for the food you eat and the content you consume. These days this is all underpinned by increasingly sophisticated and seamless algorithms, but until now that’s been broadly limited to the entertainment and lifestyle space, which I think we’ll see change over the next year.
“I’m thinking specifically about financial advice. Historically the default has often been for people to get their advice from family and friends or, if they did go to a professional, it would be one that was used by someone they know. And that doesn’t necessarily mean consumers are accessing the right advice, or that they’re getting it from the person that’s best for them.
“In 2024 we’ll see technology become more of an enabler, providing that essential level of personalisation and choice around accessing financial advice. Like we’re already seeing at Unbiased, it will increasingly help lead people to the advisers and support that are right for their individual circumstances – whether that’s advice on mortgages, their pension pot or managing the intricacies of inheritance tax. It’s all building towards giving people more power over their financial position and their future.”
Jacob Plaster, CTO at Io.finnet
“As the CTO of a leading fintech firm, I foresee significant advancements in FinTech, particularly in enhancing security, democratizing finance, and the advent of Central Bank Digital Currencies (CBDCs) in 2024.
“The banking industry has faced increasing threats from cybercrime. In 2024, the focus will be on combating these threats through self-sovereign identity and advanced authentication systems, such as private-key signing solutions. Leveraging technologies like MPC (Multi-Party Computation) from the cryptocurrency domain, we aim to significantly mitigate these risks and protect the industry from escalating cyber-attacks. Blockchain technology and decentralization are poised to democratize finance. We expect a surge in peer-to-peer financial platforms, enhancing capital utilization and making transactions more compliant, faster, cheaper, and secure.
“Globalization is steering governments toward CBDCs. The Atlantic Council’s CBDC Tracker shows that as of 2023, over 90 countries are exploring CBDCs, reflecting a significant global trend. CBDCs will offer governments tighter control over compliance, sanctions, and monetary policy while simplifying operations by bypassing intermediaries. These developments not only mark a transformative phase for the fintech industry but also underscore our commitment to technological innovation, ensuring secure, efficient, and inclusive financial services.”
Bundeep Rangar, CEO at Fineqia
“As we anticipate the evolution of FinTech in 2024, several transformative trends are poised to shape the financial landscape. Firstly, the broader adoption of AI and machine learning in wealth management, credit assessment and risk management aligns with the continuous innovation we’ve witnessed in blockchain technologies. This will enhance the efficiency and accuracy of financial services, a pivotal aspect in driving digital transformation within the industry.
“The mainstream integration of Central Bank Digital Currencies (CBDCs) mirrors the ongoing shift towards digital assets marking a crucial stride toward digitizing traditional financial systems.
“The adoption of AI and blockchain technologies should also enhance financial inclusivity as digital IDs and Know Your Customer (KYC) processes become easier to implement. This is helped by the expansion of Open Banking ecosystems and the growth of Banking as a Service that echoe consumer-centric approach and technological advancements we’ve seen in our pursuits.”
“These trends, combined with the increasing popularity of mobile payments and innovative financing options like Buy Now, Pay Later (BNPL) services, signify an era of rapid digital transformation, reshaping FinTech into a more inclusive, technology-driven, and consumer-centric landscape.”
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Rodolphe Ardant, CEO and Founder at Spendesk
“In 2022, fintechs accounted for 5% of the global banking sector’s net revenue, and while that figure is expected to grow exponentially, all signs indicate that incumbent legacy institutions will remain dominant in the market. Today’s tough economy is sorting the strong business models from weaker ones. For example, we’re seeing B2B models holding up much better than B2C, due to the year-on-year rise in demand for fintech solutions and the unstable nature of consumer spending.
“Not all fintechs are being hit equally hard during this period of market correction. Different verticals and those at different stages of growth are demonstrating contrasting levels of resilience. The companies with long-term business plans are still pulling in investment.
“In the next 12 months, there will be a major shift towards sustainable growth strategies. With tighter purse strings in a cautious market, fintechs and investors are getting serious about making profits for the long term, not just ultra-fast hypergrowth. In an environment where cash is scarcer, greater creativity is required which leads to new innovations.
“In a nutshell, 2024 is the year of acting smart, staying lean, and thinking long term. Success for fintechs will be less about the flash and more about the fundamentals — real performance will be king.”
Otávio Tranchesi, Industry Lead at AppsFlyer
“In 2023, for the first time in many years, interest rates went up significantly worldwide, making loans more expensive. Global inflation reached peak level, triggering a cost-of-living crisis, while consumers had fewer resources to pay back money they had borrowed, Meanwhile, funding for new fintechs has dried up, leading to less investment in user acquisition and the associated marketing campaigns.
“For 2024, there is optimism about the possibility of inflation slowing down and central banks decreasing interest rates. Privacy is going to be the biggest factor driving efficient marketing campaigns and companies that fail to adapt to this new way of doing marketing will die.”
Sigita Kotlere, CEO at Nectaro
“There is a new era ahead that will enhance the industry and make it more mature. When looking into 2024, yes, there still is a room for skepticism, but at the same time, the industry promises interesting shifts:
“Regulated investment environment: consumers will shift to regulated platforms, while industry development paise will get slower. As regulatory bodies across the globe dive deeply into business and fintech is finding a common language with the regulator, the industry becomes more regulated, benefiting everyone involved. Consumers will realize why regulation is needed, first and foremost, for their safety, therefore a shift to only regulated platforms such as Nectaro is. From a business position, it is only natural that regulated business develops slower as it faces larger bureaucratic burden, hence the fintech scene as such in 2024 as such can be influenced.
“Cryptocurrency spring. The worse things go in traditional economics, the better the crypto market goes. Difficult times lead to riskier decisions and people tend to forget about previous losses, wanting to run after a quick profit. That's why Next year is called the Crypto Spring. The new generation of fintech startups may not receive their “golden ticket”. While some fintechs may not survive in the current environment, others will come out strong, gain market share, and become more competitive. At the same time, the industry might miss great projects due to the current economic environment and cautious attitude to invest in fintech companies leaving such potential “unicorns” to struggle.”
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Callan Carvey, Head of Global Operations at Cleo
“We’ve seen the tremendous impact that AI has had across all industries this year, shaking up how we work, communicate, and consume. Looking ahead to 2024, I predict that any Fintech company not using AI will become obsolete.
“Whether it’s leveraging AI for customer service, within the hiring process, to automate tasks, for risk assessment, or for fraud detection and prevention, AI has gone from being a nice-to-have to a critical component of a company’s business operations.
“One of the most powerful functionalities of machine learning and AI is that it can be used to help predict future financial difficulties and then make recommendations on what proactive measures can be taken to mitigate them. Some key examples of where AI will continue to be utilised in Fintech is for greater personalization, customer experience, problem-solving, prediction, and risk analysis.
“At Cleo, where our AI assistant has been leading the charge in personal finance over the past seven years, we are excited about upcoming opportunities to engage more with young people. We’ll be smarter, faster, and more powerful in developing tools that coach Gen Z to get out of debt, achieve financial security, and build wealth.”
Janine Hirt, CEO at Innovate Finance
“Following a challenging 2023, the FinTech sector is well positioned to support businesses and consumers as we head into 2024, offering innovative ways to navigate a complex economic environment. For example, Open Banking is set for even greater adoption across key business and consumer usage areas, with the deployment of budgeting algorithms allowing for better-informed budget management and financial planning.
“The progress made in July’s Mansion House Compact promises to deliver increased funding to the UK’s most innovative growth companies, including FinTechs.
“Emerging technology like AI will open new avenues for FinTechs to enhance the personal-finance experience and tailor bespoke advice to the user’s specifications and level of financial know-how.
“We need 2024 to deliver a smarter regulatory framework that supports further growth of FinTech in the UK – particularly on unlocking the full potential of BNPL, crypto assets and of a digital currency.”
Phil Larratt, Director of Investigations at Chainalysis
“In 2024, we can anticipate that illicit actors are going to become more sophisticated in the tactics and techniques they use, especially as more long-standing traditional organised criminals and financial crime actors continue to adopt crypto as well. This is largely in response to the growing knowledge there is around how blockchain transactions are traced, and the increased frequency and effectiveness of law enforcement interventions.
“This developing sophistication from illicit actors could involve the use of privacy coins, bridges, mixers and other obfuscation tools, but it’s worth noting that the technology to trace through obfuscation techniques will continue to advance too. In response to this likely trend, we will need more intensive law enforcement investigations, increased training and knowledge sharing by law enforcement organisations, even more advanced fraud protection programs and continued partnerships between the public and private sectors, in order to continue to successfully disrupt and deter illicit activity on the blockchain.”
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Torben Andersen, Director of Engineering at Pleo
“Over the course of 2023, AI has supercharged productivity across workplaces everywhere. In finance, we’ve been no strangers to AI – with chatbots a mainstay in how we talk to our customers. But in 2024, I predict this to turn up a notch, with the increased implementation of generative AI.
“ChatGPT made people think – hey, this can do something for me today. It’s the first time people have had this proximity and hands-on experience with it. But this wow factor has meant a lot of people are rushing in, and they’re not giving their implementation the thought it deserves. In 2024, I’d like to see finance teams exploring the future of AI, but being conscious of the hype in the space and thinking about what they can get from the product. I also expect we will see more use of AI tools to minimise fraudulent expense reports by monitoring and approving expenses.
“Generative AI is a good tool for teaching you new things and helping to automate routine tasks. This frees up teams for more complex work, which in turn improves the overall value businesses can create. However, both humans and caution will always be needed. The businesses that get it right will be the ones that do a slow roll-out, do small pilots and have a small team dedicated to trialling AI-supported tools. Ensuring data security and data validation, including encrypted storage and transmission, is paramount to ensure high data quality and accurate AI outputs.”
Philippe Bekhazi, Founder and CEO at XBTO Global
“In 2024 we’re going to see an accelerated convergence between digital assets and traditional finance.
“Namely, the likely approval of multiple spot Bitcoin ETFs will galvanise the market but may not have the immediate big bang impact that some in the industry are expecting. If approved, we will see a gradual mindset change as more traditional asset allocators start to include digital assets in their portfolio, and build it more naturally into their investment philosophy. Crucial steps, such as the ETF, are being made towards greater institutional adoption of digital assets and ultimately the maturation of the crypto industry.
“As we head into 2024, there are many exciting tailwinds such as the halving of Bitcoin in April and the ETF approvals, which are set to give the industry greater momentum. Meanwhile, as the industry continues to be de-risked and regulatory frameworks are set out, more institutional investors will recognise crypto’s potential.”
Daniel Pell, Vice President and Country Manager, UKI at Workday
“Finance may be perceived as a more risk-averse segment of the business, but it is one of the most promising in regard to innovation and change.
“In fact, our Global CFO AI Indicator Report revealed that finance leaders understand the importance of having an AI strategy to gain a competitive edge, with the two top drivers for AI adoption within the finance function being better decision-making (24%) and operational efficiency (20%). As a result, we will likely see an increase in financial institutions moving more of their data to cloud-based AI platforms in 2024.”
Neil Kadagathur, CEO of Creditspring
“The cost of living is only continuing to rise, and more people are becoming reliant on credit. Worryingly, nearly a quarter (23%) of people who have borrowed, have then struggled to repay the money and their financial situation has worsened.
“Positive changes in the sector, such as the FCA’s new Consumer Duty rules introduced earlier this year, represent a step in the right direction for responsible lending. However, with seven million people claiming that they will be reliant on credit this winter, there needs to be improved solutions more readily available, particularly for vulnerable borrowers who are at real risk of falling deeper into viscous debt spirals.
“Reliance on credit won’t suddenly diminish at the start of 2024 – nearly a fifth (18%) say they are terrified for their financial future next year. Yet when used correctly, credit can be a real and positive lifeline. Financial providers must continue to towards innovative technological solutions next year that can help improve transparency and ensure borrowers have access to affordable credit options with clear repayment plans and no hidden costs.
“Using simple short-term borrowing models, such as subscription finance, makes it far easier for people to understand the real cost of borrowing preventing them from falling further into debt.”
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Richard Prime, Co-Founder & Co-CEO of Sonovate
“Typical forms of lending are proving woefully inadequate. Compared to 2022, two-thirds more SMEs are experiencing difficulty accessing finance from mainstream banks and more than half (54%) say banks lending policies haven’t kept pace with modern business needs.
“As a result, fintech lenders have stepped up to fill the funding gap, providing finance to the UK’s SMEs where traditional incumbents are falling short. These alternative finance options are increasingly offering a lifeline for UK SMEs, with 70% admitting they wouldn’t have survived the current cost of living crisis if it wasn’t for these types of lenders.
“Next year, innovative fintech companies are likely to continue to plug the SME funding gap – our research shows that 40% of SMEs have already turned to alternative lenders to pursue their growth plans in the current economic environment.
“Proving themselves as successful disruptors and a vital source of funding, fintechs are no longer an alternative option for SMEs but instead are being seen as a first port of call. Over the coming years, these lenders are likely to consolidate market share due to their increased agility, better understanding of the specific needs of SMEs and their ability to quickly offer on-demand funding.”
Sho Sugihara, CEO and Co-Founder of Fuse
“Though inflation has started to come down, millions across the UK are still struggling with the cost of living. Many have turned to credit as an additional means of support – yet a rise in borrowing is also pushing up default rates. Earlier this year, our research showed that 32% of lenders witnessed an increase in customer defaults, pushing already vulnerable borrowers into worse financial positions.
“While the FCA’s Consumer Duty rules are a positive step forward, forcing financial institutions to place consumers at the heart of all decision making to ensure good outcomes, 37% of financially vulnerable people still say their bank could do more to help them make informed decisions. Banks and lenders will stay under scrutiny from both regulators and consumers throughout 2024.
“AI will play a pivotal role within the fintech sector in the coming years – around a third of lenders think that technology will become more important to provide bespoke tools and products to borrowers. Utilising real-time customer data, financial institutions should look towards innovative technologies that can provide greater insight into borrower vulnerability and affordability, allowing them to offer tailored support at a much earlier stage.
“Greater cross sector collaboration – with policymakers, technology providers, and lenders –will also start to help unlock better financial products that can help to build a fairer financial system for millions across the UK.”
Matt Russell, CEO of Zest
“With businesses facing rising costs, awarding salary increases to employees has been a challenge. However, given 2023 has been a candidate-driven market, businesses have had to find cost-effective approaches to attract, motivate and retain talent – many have opted to do this by investing in their reward strategies. Employee benefits now play a critical role in the overall renumeration strategy, with 42% of employees stating that benefits are their most important consideration when seeking a new role.
“Finding the right technology to effectively deliver personalised, flexible and targeted benefits will be essential in 2024. Using technology in this way means that employers can send targeted emails and notifications to relevant employees, alerting them, for example, of any upcoming benefits that may be of interest. Using data to identify factors such as age, team and gender can help HR managers and benefits leaders to administer the right benefits to the right employees whilst monitoring take-up levels of specific benefits.
“Benefits technology is essential to the modern workplace, helping employers support employees in a way that extends far beyond salary and more broadly, improve a business’ competitiveness and growth.”
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