It is fascinating to observe the evolution of the fintech industry in recent years; indeed, there are few other industries that have gone through such change and growth in modern times. This means that it can also be challenging to keep pace. 2024 has been another massive year for fintech, and there have been a number of major trends that have shaped the industry this year. This post will take a look at a few of the biggest trends in fintech right now and how they have changed the landscape. Interested? Keep reading to find out more about the biggest trends in fintech.
AI
Obviously, AI has been an enormous trend in fintech this year (as well as just about every other industry). AI is being used in many exciting and innovative ways, including fraud detection and AI-driven virtual assistants that can offer personalized advice. Additionally, machine learning is greatly improving the credit risk management field with the ability to assess creditworthiness rapidly and offer personalized financial products.
Blockchain
Blockchain is becoming a lot more prevalent in all areas of life in 2024, including fintech. Blockchain technology is ideal for modern times as it can improve security, ensure transparency, and reduce costs, just to name a few benefits. Blockchain technology can remove the middleman (banks) for a streamlined process and facilitate peer-to-peer lending.
Neobanking
An interesting trend to emerge in recent times is neobanking. Neobanks are digital-only banks, which enables banks to be a lot more agile without the need for physical branches (also an enormous cost). Neobanks can use modern technology to provide an enhanced customer experience, lower fees, and higher interest rates. With traditional banking models struggling, it seems that neobanks are likely to be the future of banking.
Open Banking API Solutions
Another trend to keep an eye on in 2025 is open banking API solutions. Open banking API platforms can provide banks and financial institutions with API management tools that can help in many ways, including improving data accessibility and ensuring compliance with various regulations. Open banking API platforms can also be used to make new revenue opportunities by giving banks the ability to develop personalized services. In addition to all this, these solutions can be helpful in terms of enabling smooth API communication, which is key for modern financial products.
Robo-Advisors
Robo-advisors have been heavily scrutinized in years gone by, but they are now starting to become trusted by many when it comes to wealth management. This is thanks to the development of AI in recent years, which means that robo-advisors can now provide high-quality and personalized investment advice to investors. This is at a fraction of the cost compared to hiring a financial advisor, so it is easy to see why many are now turning to robo-advisors for decision-making.
These are currently the biggest trends in the world of fintech. It can be difficult to keep up with an industry that is changing so quickly, but if you keep an eye on these areas, you’ll be able to keep ahead in the year to come.
