By 2024, the utilization of fintech solutions will enable companies of any scale to provide highly individualized customer experiences, while simultaneously ensuring enhanced and dependable protection of data.
In the meantime, regtech solutions will aid businesses in maintaining compliance amidst a continuously strict regulatory landscape.
This piece will examine the prominent offerings, solutions, and developments that will have a stronghold in the fintech and regtech sectors beyond 2024.
1. SaaS – Online clouds and opening banking
Cloud technology has become a popular choice for the financial services industry in recent times, providing a quick, safe, and dependable means of communication and collaboration for various sectors and time zones. Over the next year, we can anticipate the launch of programs that aim to simplify the transition of financial service providers to cloud services. This will aid in the continuous expansion of the Software as a Service (SaaS) sector.
The year 2023 saw a rise in strict online safety regulations being implemented by multiple governments worldwide, a trend that is expected to continue in the future. This will spark discussions about the potential use of distributed cloud systems by traditional banks to improve their adaptability and customer-centric approach. However, there may be concerns among some institutions about how they can reap the benefits of distributed cloud systems while also adhering to privacy regulations like GDPR.
Other than the cloud, there are other technologies that will promote communication and collaboration within the industry. By 2024, open banking API integrations will continue to be widely used, enabling third-party developers to create robust applications and services for financial institutions.
The utilization of open banking API systems enables the secure exchange of information and insights between fintech providers and banks, resulting in a more tailored approach to financial services and an enhanced customer experience. A research study has projected a potential growth of 645% in global open banking API calls by the year 2024.
2. Decentralised blockchain technology
KYC specialists are now turning to blockchain technology to streamline their verification process.
Traditionally, the verification processes for businesses involved referring to centralized systems and databases, which were not only time-consuming but also prone to cyber breaches and hacking attempts. As a result, customers were subjected to lengthy approval procedures and exposed to potential security threats.
The use of blockchain technology enables the storage of all data on a decentralized ledger with strong security measures, resulting in a faster approval process. Additionally, this heightened security is complemented by improved transparency, as all involved parties have access to and can confirm each stage of the approval process.
The implementation of Blockchain technology in KYC offers advantages for both businesses and customers. It allows customers to obtain quick approval while ensuring the security of their personal data. At the same time, businesses can benefit from faster identity verification, safeguarding themselves against fraudulent activities and complying with anti-money laundering regulations.
3. The Increasing Dominance of Artificial Intelligence
As per a research, by 2026, approximately 70% of new app development processes will incorporate generative AI. By 2024, there will be a significant rise in the use of AI-powered compliance tools by financial institutions.
AI and machine learning models have the ability to quickly process large volumes of data, making them invaluable in ensuring compliance. They can automatically identify and emphasize any irregularities, as mentioned by Stacy Verlinden in her article on emerging fintech trends for 2024. As compliance requirements are constantly changing, the use of AI models enables organizations to effectively maintain their regulatory compliance.
In recent times, there has been a growing realization of the potential for businesses to utilize AI in order to enhance the customer experience by providing a more personalized and efficient service. By utilizing AI chatbots, businesses can collect customer data and gain immediate insights into their financial well-being, allowing them to customize their offerings to better meet the unique needs of their customers.
Naturally, any conversation regarding the possibilities of AI should also take into account the potential hazards, including safeguarding data and protecting customer privacy. Nevertheless, if properly handled, AI has the potential to usher in a new age of compliance and improved customer experiences by offering truly customized financial services in 2024.
Section 4: Flexible payment terms (BNPL)
BNPL offers customers the option to split payments for their purchases over a period of time, without having to worry about convoluted and harsh interest rates. This enables customers to better handle their payments, while also having the assurance that their credit score and financial situation will not be impacted by their purchases.
According to a report from Grand View Research, the financing option of “buy now, pay later” is gaining popularity, projected to have a compound annual growth rate of 26.1% from 2023 to 2030. This option has clear advantages for businesses, such as increased sales and reduced abandoned carts, as well as positive customer reviews and repeat purchases resulting from satisfied and empowered customers.
By 2024, the focus of fintech experts is likely to be on developing flexible BNPL solutions that can be easily integrated into eCommerce platforms.
5. Payment through Mobile Devices
According to a study, by 2026, mobile commerce is projected to make up 8.7% of total retail sales. Additionally, it is expected that the number of unique mobile payment users will surpass one billion by 2024. These trends were reported by Insider Intelligence and Juniper Research, respectively.
The use of embedded payment systems on online platforms is gaining traction, potentially boosting the expansion of mobile payments. By 2023, the embedded finance market is valued at $43 billion and is projected to reach $128 billion within the next five years.
Offering a Versatile, Creative, and Reliable Framework for Companies of Any Size
We, at Cellbunq, are looking forward to the advancement of a more interconnected, cooperative, and reliable world through the use of fintech and regtech innovations. Our services can aid in simplifying your business’s KYCB procedures and providing a seamless and secure client onboarding experience.
Through our platform, we offer the ability to access more than 10,000+ data sources to give you a complete and extensive overview of any business you wish to work with. By utilizing our services, you can efficiently streamline your due diligence procedures, creating a smooth and speedy experience for all parties involved, including your customers and regulatory bodies.