What Are The New Top Fintech Trends For 2024?

Constant improvement and evolvement are observed in the fintech industry every year, and it is expected that 2023 will bring some innovations and improvements in the fintech industry. According to the Market Data Forecast report, the global fintech market will grow by nearly 25.18% and generate a market value of nearly $324 billion from 2022 to 2027. Recently, the banking industry has faced massive growth in adopting fintech solutions because users are looking for more advanced technology.

It has been identified that the fintech industry has the top Fintech trends, including SaaS services and embedded finance services that will shape the fintech sector in the present year. In this post, some of the top trending fintech services are discussed that can shape the future of the fintech industry in the coming years and will help consumers and businesses to make their lives stress-free and more accessible.

     1. Digital-Only Banking

Digital-only banking or online banking is a popular financial service that helps customers handle their money through digital channels, including websites and mobile apps. These digital banking do not provide in-person services or have physical branches.

This service depends on technology to offer convenient and fast banking services to users regarding money transfers, account opening, card management, and bill payments. It offers low or no fees, competitive interest rates, and innovative features like real-time spending notifications and budgeting tools. Such kinds of services are helpful for tech-savvy customers who like to value seamless user experiences and bank on the go.

Moreover, digital-only banking reduces queues and tedious paperwork at the bank. Suppose you want to develop your digital-only banking solution. In that case, you will feel surprised that US digital banking users are predicted to generate 216.8 million by the end of 2025.

Must Read: How to Create Mobile Banking App?

     2. SaaS

Software as a service, or SaaS, is another top FinTech trend for 2024. This sector is growing vastly in the right direction. A business can pay and access software applications with SaaS services without installing them on computers or servers. It has been identified that SaaS can eliminate different overhead costs and allow your business to give attention to resources for building customer experiences. In addition, SaaS is helpful for accessing tools with improved security protocols for data management and storage that are expensive or critical for a company to implement.

     3. Embedded Finance

In recent past years, embedded finance is growing popularity in the fintech industry, and it is expected to dominate among the top FinTech trends. Embedded finance is a broad category of financial products and services that is used within a particular platform framework.

When many services are embedded inside an existing platform or app, users can be able to better handle their finances without making any changes to the websites or apps. For instance, the Fastest-growing “Buy Now Pay Later” embedded finance model is helpful for the users to buy first and pay later. It is more convenient option for the users, so it is predicted to grow in the upcoming years.

     4. Open Banking

Open banking is another significant technology that drives financial technology and banking together, allowing data networking in different institutions. This kind of service offers more flexibility and financial controls to FinTech users by ensuring the secure transfer of financial information to third parties.

It allows third parties to integrate Application Programming Interfaces or APIs to access the financial data of the customers. It means that customers are sharing their important financial data, including transaction history, account balances, and payment data, with third parties, such as lenders, budgeting apps, etc.

It has been identified that open banking promotes transparency, competition, and innovations in the fintech industry, which helps new players to get into the market. It also provides tailored and personalized financial services. Hence, you may consider integrating these services within your business by hiring the best Mobile App Development Services.

     5. AI & Machine Learning

Another top FinTech trend is AI and machine learning, which is predicted to shape the fintech industry in 2024 and is expected to grow in the upcoming years. It has been identified that ML and AI can revolutionize payments, banking, risk management, investments, and many more. Artificial Intelligence has the ability to take actions that increases the success rate and perceive their environment.

Machine learning is the application of AI that helps to identify patterns in the fintech industry. Here, fintech businesses can utilise these new and advanced technologies to automate work processes like fraud protection or loan origination by giving accurate information for customer behavior. After integrating these tools within the business, you can be able to reduce manual labour, and costs and increase overall performance efficiency and accuracy.

     6. IoT

Information of Technology plays a significant role in the Mobile App Development Services. It helps the physical devices to stay connected to the internet to gather data, and take actions accordingly without taking the help of humans. The fintech industry can utilise IoT to create more convenient, efficient and secure banking processes.

Here, banks can automate customer responses and monitor customer activities based on preset behaviours or preferences by using sensors embedded into their products. It may help to automate payments and detect fraud activities by transforming in customer spending patterns. In addition, the fintech industry is also using voice recognition technology that is considered to be helpful to improve security and simplify login processes by making secure accounts.

Conclusion

Overall, the fintech industry has a broad scope and opportunities in the upcoming years as many new techniques and tools are introduced in the industry that simplifies banking and financial activities simple and easy for users. After doing research, some of the top Fintech trends are identified that including digital-only banking, open banking, AI and machine learning, IoT, embedded finance, and software as a service. All these services are predicted to enhance the growth of the fintech industry in the future. Thus, it can be a great idea to integrate these new technologies and advancements into your business and secure your payment.