Charting the growth of finance technology solutions and their impacts in 2024
Explore how finance technology solutions are driving growth in 2024. Learn about trends, innovations, and their transformative impacts on financial services.
Did you know the fintech market is projected to grow by 16.5% in 2024?
The global fintech market, valued at USD 294.74 billion in 2023, is projected to grow to USD 340.10 billion in 2024 and is anticipated to reach USD 1,152.06 billion by 2032.
In 2024, the fintech industry is witnessing significant growth and widespread integration across multiple sectors, fundamentally altering the delivery of financial services. This expansion is fueled by innovation, with advanced technologies such as artificial intelligence, blockchain, and digital wallets revolutionising the financial sector.
These technological advancements not only enhance operational efficiency but also offer improved security, increased financial inclusion, and more tailored customer experiences. As industries such as banking, insurance, and payments adopt fintech solutions, the sector is poised to reshape the future of finance.
What are the key growth trends in finance technology solutions?
Rise of digital payments solutions:
78% of consumers have embraced digital-first commerce and contactless payments. The rise of digital wallets, real-time payments, and mobile banking apps is transforming how transactions are made. These innovations enhance speed, convenience, and security, offering seamless experiences and reducing friction in everyday purchases. As a result, they are becoming a key driver of the digital economy, reshaping how people engage with financial services.
AI and automation in finance:
Around 77% of consumers regularly use AI technologies for banking and financial needs. AI enhances customer experiences by providing personalised services, detecting fraudulent activities in real-time, and optimising risk management. As machine learning algorithms continue to improve, AI-driven solutions streamline operations, reduce costs, and enable institutions to offer smarter, more efficient services, driving innovation and outcomes for customers.
Blockchain and cryptocurrency innovations:
PwC reports that 61% of companies have made digital transformation a top priority, with blockchain technology addressing the growing demand for enhanced security and transparency. By decentralising financial transactions, blockchain ensures greater data integrity and provides secure, transparent processes that reduce fraud. Its ability to streamline cross-border payments and smart contracts is further accelerating its adoption within financial services.
Embedded finance:
56% of businesses offer at least one form of embedded finance, and 55% of non-financial businesses plan to introduce these services in the next two years. Integrating financial services into non-financial platforms allows companies to provide seamless, on-demand access to financial tools. This trend enhances customer experiences by enabling easy access to credit, payments, and insurance products directly within the apps and services they already use.
What are the impacts of finance technology?
01
Enhanced customer experiences
Brands offering exceptional customer experiences generate 5.7 times more revenue than their competitors. Personalised, seamless digital interactions are reshaping customer expectations, delivering tailored services and quick responses. Fintech innovations like AI, chatbots, and automated services provide faster, more convenient solutions, driving higher satisfaction and loyalty, and setting a new standard for customer engagement in the financial sector.
02
Improved financial inclusion
From 2011 to 2021, the global number of adults with bank accounts grew 50%, from 51% to 76%, with significant increases in developing countries. Digitalisation has been key to this shift, particularly mobile money services, which have helped boost bank account ownership by 30 percentage points in emerging markets. Fintech is empowering underserved populations by offering accessible, affordable financial services, and breaking down traditional barriers to banking.
03
Operational efficiency and cost savings
41% of finance professionals report being much less efficient due to the lack of accounts payable automation. Digital tools and automation streamline financial processes, reducing manual tasks and errors. By automating routine functions such as invoicing, payment approvals, and reporting, fintech solutions help businesses cut costs, speed up workflows, and improve overall operational efficiency, allowing finance teams to focus on more strategic tasks.
04
Regulatory and compliance challenges
83% of risk and compliance professionals say ensuring compliance with laws, policies, and regulations is critical in decision-making. As the regulatory environment evolves, companies face increasing pressure to adapt. This has driven innovation in compliance tools, such as automated reporting and real-time monitoring, helping organisations meet complex requirements while mitigating risks. Balancing innovation remains a key challenge in fintech growth.
FAQs
Accordion Content
Fintech focuses on leveraging modern technologies like AI, blockchain, and cloud computing to enhance speed, accessibility, and user experience, whereas traditional services rely more on legacy systems and in-person processes.
Businesses can reduce costs, streamline processes, gain data-driven insights, offer personalised services, and improve scalability by integrating Fintech solutions.
Yes, fintech bridges gaps in access to financial services by providing affordable, user-friendly solutions to underserved populations.
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