FinTech Predictions for 2024

Kimberley Waldron, Co-founder, SkyParlour.

Smarter Partnerships Across the Sector

I’m predicting another year of maturation across the FinTech sector. Over the next twelve months, I expect to see more businesses pursuing partnerships that aren’t entirely focused on finding the fastest route to market. Nowadays, many founders also really recognise the importance of a sustainable growth plan and the value of a strategic partner who can facilitate it, steering clear of unnecessary hype and inflated expectations. In today’s FinTech market, businesses are seeking that sweet spot where they can gain the expertise, market insights, and tech know-how from established players, but without biting off more than they can chew in terms of funding. Additionally, there's now less fascination with enormous valuations, and that's not necessarily a bad thing. A greater emphasis on solid business fundamentals across the sector would undoubtedly be a net positive.

Thankfully, as we enter 2024, businesses with sustainable growth models are already beginning to thrive by focusing on financial products that deliver real-world benefits. If I can speak personally, it feels like a step in the right direction after a difficult few years.

Antoine Cuypers, Director, Strategic Alliances & Key Accounts, Intix.

Instant Payments to Reach New Heights

Over the years, there has been a persistent clamor from consumers and businesses for quicker, digitised payment methods, intensified by the urgent need for safe, touchless payment options in response to the Covid-19 pandemic. As we enter 2024, the emergence of truly instant payment solutions feels almost inevitable. Both in Europe and North America, it’s a trend that has serious scope for growth. According to research from the European Central Bank (ECB), Single Euro Payments Area (SEPA) instant credit transfers currently account for only 14% of all conventional SEPA credit transfers. During the next 12 months, it’s highly likely that number will grow much further with more and more companies entering this emerging space and offering real-time payment solutions that add value to the lives of businesses and individuals. Legislation brought through by the European Commission will also help to further proliferate adoption rates. The proposed regulation has been designed to ensure that every citizen holding a bank account in the European Economic Area can make instant payments in euro. If this is implemented, then we will see a considerable increase in demand for instant payment solutions across the continent.

Oli Cook, CEO and co-founder, ekko.

Prepare For More FinTech Fusions

I’d argue the financial landscape in 2024 is shaping up to be a prime arena for mergers, acquisitions, and collaborations, particularly in the FinTech sector. As the market becomes more challenging, companies are actively seeking new specialisations and capabilities to maintain their competitive edge, often through partnerships with complementary businesses. This trend extends beyond FinTech companies; traditional financial institutions are also getting involved, recognising the need to incorporate modern financial technologies to stay relevant. These coalitions are driven by a desire not only to diversify and innovate but also to strategically reduce the risks associated with extensive research and development investments. By collaborating, companies can quickly access new technologies, expand their customer bases, and gain valuable market insights. This trend of consolidation represents a practical approach to navigating the complexities of the current economic environment, indicating a significant transformation of the FinTech landscape.

Bo Liljefors, CPO of Brite Payments, Brite.

Shift to a Cardless World

The shift towards a cashless world has been one of the bigger trends of the past decade, particularly noticeable in Sweden, where physical cash has all but disappeared from the retail landscape. Meanwhile, in the UK, it's widely expected that only 7 percent of shop payments will be made in cash by next year. With cash usage continuing to decline, it will be interesting to see how card payments fare in the next 12 months. At Brite, we've been predicting a shift towards ‘cardless’ as well as ‘cashless’ payments and expect this to gain real traction in 2024. There are many benefits associated with a shift to cardless payments – not least enhanced convenience and greater accessibility for users. Additionally, there are significant security improvements, particularly in negating the risks associated with lost or stolen bank or credit cards.

Pav Gill, CEO & Founder, Confide.

The Growing Emphasis on Governance in ESG

In 2024, we’re also anticipating a significant shift in focus towards the 'Governance' aspect of ESG. Over the next few months, it’s likely that companies will increasingly recognise the importance of strong governance practices in creating a safe, ethical, and productive work environment. Whether that shift is driven from the top down, as shareholders, directors, and senior management prioritise governance, or from the bottom up, as employees demand a workplace that aligns with their ethical values awaits to be seen. Regardless, the result should be a more holistic approach to corporate responsibility, where governance is seen as equally important as environmental and social factors. This new emphasis on governance should also lead to more transparent and accountable corporate practices, contributing to the overall trust and credibility of businesses. Companies that don’t align themselves to this shift could fall behind others in 2024 and quickly find themselves playing catch up.

Alex Mifsud, CEO & Co-Founder, Weavr.

Embedded Finance Embraced by Vertical SaaS Platforms:

In 2024, I anticipate the growing adoption of embedded finance by Vertical SaaS platforms. The movement signifies a deeper melding of technology and finance, integrating financial services as a core component of the user experience and ultimately of providing truly complete solutions for verticals such as insurance, healthcare, education, and the like. At Weavr, we’re at the forefront, equipping Vertical SaaS platforms with the means to integrate financial services into seamless solutions for their target sectors.