What are the top fintech trends for 2024?

Last year saw some major shake ups in the world of technology. Words like Artificial Intelligence and ChatGPT entered the lexicons of our day to day lives, leaving an impact on all sectoral fronts. The Fintech industry had its fair share of evolution, with increasing penetration of digital payments, CBDC and fintech giants like PhonePe entering the Mutual Fund space. As we take baby steps into 2024, here are some of top trends you need to have an eagle’s eye on the Fintech Industry.

1. Are you someone who frequently shops online? If yes, then get ready to witness more Account to Account (A2A) payments and transfers like UPI and other forms of digital payments. In fact A2A payments may even go mainstream and upstage traditional card based transaction like debit and credit cards. (write as discussed)

2. Last year, we saw the RBI launch the CBDC or the Central Bank Digital Currencies on a pilot basis, albeit the no of transactions was minuscule. However all of that is set to change this year, with specific use cases set to emerge for CBDC propelling digital currencies into the next phase of growth.

3. Generative Artificial Intelligence (AI) will continue to leave its presence by telling how you do your spending? Lending institutions will be leveraging Generative AI to offer highly personalised experiences to borrowers enhancing the overall experience.

4. This year digital wallets will get an additional layer of protection with digital identity integration. With latest developments like eIDAS2 (electronic IDentification, Authentication, and trust Services 2) that can complete the verification process by just reading e-ID of citizens through their wallets, security will be enhanced and user experience will be streamlined.

5. Alternative payment methods are rapidly increasing and so are the cases of money laundering. As a counter measure,  Anti-Money Laundering tools are set to undergo a major transformation. Owing to complex nature of various digital payments will prompt AML tools to adapt, ensuring robust compliance measures are kept in-place.

6. Smartphones have made banking tasks seamless and easy like never before. From just making simple peer to peer transactions, the focus will be more towards offering more advanced banking services, reducing reliance on conventional transaction models.

7. If you are planning your festive shopping this year then don’t be surprised if you are making in-store payments by using biometric authentication. Biometrics are set to create a revolution from just completing identity verification to completing transactions and expediting the checkout process.

8. The number of SMEs have been on the rise and BNPL better known as Buy Now Pay Later services will emerge as a critical financing tool for completing B2B payments.