Operational Fintech Trends in 2024 and Beyond: Insights from Industry Experts

In a rapidly changing landscape marked by rising inflation, interest rates, and increasing cyber threats, businesses are continually adapting to ensure their resilience. This month, The Fintech Times explores the ways in which businesses are demonstrating resilience against a multitude of factors, both within and beyond their control.

As we conclude our focus on business resilience for the month, The Fintech Times directs its gaze toward the future. The question at hand: What operational trends can we anticipate in the world of fintech for 2024 and beyond?

Thomas Dolan, president and co-founder of fintech application provider 28Stone, predicts a prominent drive toward greater automation. Dolan emphasizes that as markets evolve and seek efficiency, as well as accuracy for complex regulatory reporting, the adoption of innovative technologies like generative AI will surge. He stresses the importance of understanding customer needs and ensuring the right workforce is in place, as well as leveraging technology to maintain cost-effectiveness while keeping staff motivated and skilled.

Dolan notes, «More important than even technology is the right workforce, in the right place and doing the right job.»

Ben Dorks, CEO of Ideagen, a software solution provider for regulated industries, anticipates investment in AI to take center stage. As the financial sector navigates ongoing turbulence, Dorks highlights the growing battle for talent, concerns around productivity, and the impact of emerging technologies and ESG standards on operations. He suggests that prioritizing risk management and AI utilization will be critical in ensuring compliance and effective governance.

Dorks adds, «Fintechs can get ahead of the curve by putting processes in place to ensure their AI policy is scrutinized through a lens of both ethics and bias.»

Reinis Simanovskis, co-founder and CTO of Finfra, a white-labelled lending service provider, envisions a future where AI and machine learning drive automation and personalized customer experiences. Simanovskis foresees the integration of open banking and API solutions fostering collaboration between banks and fintechs, expanding service offerings through seamless data sharing.

Additionally, the concept of embedded finance emerges, transforming financial services in non-financial sectors. This integration means businesses outside the financial realm can offer lending services, payments, and more within their existing customer experiences.

Uldis Teraudkalns, CEO of payment provider Nexpay, highlights the growing demand for safer and more reliable banking alternatives. With conventional banks facing challenges in serving digital businesses efficiently, fintechs are embracing a stripped-back «transactional banking» model. This model focuses on essential banking needs—receiving and making payments—while eliminating risk-laden features.

Teraudkalns notes that fintechs are streamlining operations to counter escalating compliance costs, paving the way for innovative technology and lean processes that deliver efficient, cost-effective services while emphasizing safety and simplicity.

As the fintech landscape evolves, industry experts agree on several key trends that will shape the operational strategies of companies in 2024 and beyond. Automation, AI investment, embedded finance, and safer banking alternatives stand out as pivotal areas of focus. The coming years promise continued innovation and adaptation, enabling fintechs to thrive in the ever-evolving financial technology realm.