Fintech Future 2024: Unveiling latest innovations and trends

In a short span, fintech has emerged as the fastest-growing industry. The fintech landscape driven by technological evolution is estimated to rise sixfold from $245 billion to $1.5 trillion by 2030, with Asia-Pacific peripheries leading the charge to become the top fintech market, surmounting the US. Backed by a growing populace of tech-savvy professionals, sizable underbanked sectors and an innovation acumen, India is certainly not behind in the fintech race. As a result, it is gearing up to redefine the future of the global fintech scenario. 

According to Gaurav Gupta, Co-Founder of CarePay, “The future of Fintech in 2024 lies - not in buzzwords, but in expertise-driven innovation that solves real-world problems. The fintech realm is gearing up for a game-changing year, featuring winners who won't be the loudest, but the deepest.” 

Convergence of Financial Inclusion and Well-Being 

Bridging the financial inclusion gap has always been a priority for fintechs. By leveraging innovative tech tools to seamlessly assess creditworthiness, it has delivered promising financial service solutions to the underserved populace. In 2024, this inclusion will foray into the welltech sector which will focus on integrating financial wealth with well-being. Further, the emergence of open banking and API models will enable welltech fintech lenders to make informed decisions about borrowers’ repayment capacity, resulting in expedited loan disbursals. 

Working towards cultivating an equitable well-being financial space, he further added, “In 2024, the true Welltech fintech platforms would see a strategic shift towards vertically-focused innovation, wherein generic financial solutions will give way to deep industry understanding, user behaviour analysis, and tailored underwriting and collection models. This isn't just niche play; it's precision finance. By leveraging profound sector knowledge and offering hyper-relevant financial products, insurtech platforms will be able to deliver real-time lending tailored to the needs of patients.”

Explosion of Mobile Payments 

In the anticipated fintech trends for 2024, Manish Kumar Shukla, Co-founder, of CheqUPI, said, “The surge in mobile payments driven by the escalating value of digital wallet transactions, will be the much-awaited innovation in the digital payment ecosystem. While, the advent of UPI has played a transformative role in the fintech industry, allowing players to seamlessly integrate its features into a myriad of applications and make payments from any remote corner of the country. But in 2024, this integration will spur the creation of numerous innovative solutions.”

Accelerating the ongoing transition towards digital transactions, he commented further, “ Underlining the broader evolution in digital payment preferences, the world will witness a rise in digital wallets, investment platforms, lending apps, expense trackers, and more. Additionally, the increasing popularity of buy now, pay later (BNPL) options, microloans, and personalised investment opportunities will contribute to fostering diverse and engaged user bases worldwide.” 

Invincible AI and ML movement 

The fintech sector is experiencing a revolutionary shift marked by continuous innovations and advancements. With evolution across diverse verticals, from healthcare to finance, AI and ML are poised to play an increasingly important role. In the financial sector, the co-founder of CheqUPI stated, “AI applications will metamorphose risk assessment, strengthen fraud detection and redefine customer services to guarantee personalized financial experiences.”

Furthermore, the augment of Generative AI will seismically alter complex processes such as conversational AI, code generation, design automation and many more, enhancing the productivity and efficiency of employees and the profitability of the business. AI-assisted chatbots will gain prominence, given their ability to expedite customer ticket processing. Last but not least, AI will be instrumental in streamlining payment flow, by connecting customers with accessible payment options. 

Fintechs have showcased unprecedented growth, remaining resilient amid the global economic pressure and the fierce competition in the network. Fintechs have cracked the code to future-proof business strategies, that will capitalise on sparking the bulb of innovation. As we step into the dynamic year of 2024, Fintechs will focus on business efficiency and growth, by investing in transformative technologies that will chart the future of Fintech.