Technology and Sustainability Transform the FinTech Landscape
In the ever-evolving world of FinTech, 2023 witnessed pivotal shifts, technological advancements, and strategic developments that have set the stage for an exciting year ahead. Romain Mazeries, CEO of Mangopay, predicts that artificial intelligence (AI) will play a significant role in shaping the FinTech landscape in 2024, as highlighted in PYMNTS News.
As we step into 2024, the opportunities for FinTech in the realm of payments are abundant. Artificial intelligence, embedded finance, and sustainability are poised to be the most intriguing facets to watch out for in the coming year.
Mazeries emphasizes that AI is on the brink of becoming the cornerstone of the FinTech industry, and this transformation is set to accelerate in 2024. Companies are gearing up to harness AI’s potential to facilitate quicker financial decisions, streamline onboarding processes, effectively manage risks, and boost operational efficiency.
Furthermore, with the growing accessibility and affordability of integrating AI capabilities into digital products, more banks and FinTech firms are expected to invest in AI initiatives, aiming to roll out innovative products that generate incremental revenue.
The year 2024 is likely to witness a broader spectrum of AI applications, spanning creditworthiness assessment, robo-advisory services, algorithmic trading, and risk evaluation and management. This infusion of AI will not only differentiate digital offerings but also elevate the overall user experience, setting new standards for both business and consumer products.
A noteworthy trend that is emerging is the adoption of an «80/20 rule» company culture. This strategy aims to drive innovation and address workforce challenges by leveraging small, nimble teams, particularly in a talent acquisition landscape that is becoming more challenging and costly.
Beyond AI, application programming interfaces (APIs) are playing a pivotal role in enabling non-financial companies to seamlessly incorporate financial solutions into their products and platforms. This integration extends to insurance, investment, and financing experiences being embedded within eCommerce platforms, contributing to operational efficiency in payment management.
Banking-as-a-Service and Wallet-as-a-Service are also reshaping how merchants accept payments, forming the foundation for more adaptable payment flows with enhanced visibility and control. These versatile infrastructure offerings can further be employed to provide stores of value, an attractive prospect for two-sided eCommerce, such as marketplaces, helping sellers manage their earnings more effectively.
In the FinTech arena, sustainability has taken center stage, with several players committing to environmental, social, and governance (ESG) disclosure and the development of eco-conscious financial products and services.
One of the key approaches to fostering sustainability in finance is the promotion of digital payment solutions. Digital payments stand out as environmentally friendly alternatives to traditional payment methods, like cash and credit cards, as they eliminate the need for physical cards and paper receipts.
Furthermore, FinTechs and banks are taking steps to reduce their own environmental footprint. Some financial institutions are pledging to achieve carbon neutrality and minimize waste, contributing to a more sustainable future.
These sustainability trends are poised to influence consumer purchasing decisions positively. As awareness of sustainability grows among customers, they are more inclined to choose financial institutions committed to social and environmental responsibility.
As we embark on the journey into 2024, companies that embrace innovation are poised to lead the charge in shaping the future of FinTech payments. With AI, embedded finance, and sustainability at the forefront, the FinTech landscape is set for a transformative year ahead.