Talk of super app development circulated across Europe in 2023, leaving many curious about what 2024 may bring and what these new trends and developments may look like. Jeremy Baber, CEO of Lanistar, outlines some key trends which will directly impact the fintech Industry as we reach 2024.

Baber states: “In 2023, fintech demonstrated that they were a leading contributor to sustainability initiatives tackling the climate crisis, but they must also lead by example in addressing their carbon footprint issues.

“The fintech industry must embrace the value of sustainability and continue to steer clear of greenwashing. In 2024, governments must support fintech development to allow for a move away from legacy (resource-heavy) services and encourage the industry to support green businesses through loans/credit with preferential rates and other incentives. With government support, fintech can take a step in the right direction concerning sustainable practices.

"Much has been made of the capabilities and limitless potential of artificial intelligence (AI) throughout 2023. From threatening our jobs to powerful new solutions – AI is reshaping every sector. Yet, proposed AI regulations leading into 2024 are poised to further disrupt the payments industry.

Baber added: “AI undoubtedly improves customer experience, and any proposed regulation will have to preserve, rather than damage the service it offers customers. AI developments enhance credit and application approval processes to streamline the customer journey. Once again, it is crucial for regulation to not be overly bureaucratic or act as a hurdle for fintech’s to negotiate. Instead, regulation must sure-up trust amongst businesses and users whilst at the same time allowing the power of AI to continue improving the customer experience.

“The Banking of Things (BoT) will be much more accessible and scalable for the fintech industry in 2024. With the development of cloud computing, the broad adoption of mobile technologies, the digitisation of payments and the increasing number of smart devices consumers have access to."

“This emerging trend has the potential to create a range of possibilities for consumers and banks alike. In 2024, for fintech to benefit from BoT, device manufacturers and leading tech developers must work together to standardise and improve IoT practices to pave the way for BoT. Rising inflation and economic instability in 2023 have forced fintech’s to enhance customer centricity and innovation while prioritising cost efficiency and profitability over rapid growth.

"The economic instability in the UK will negatively impact fintech in 2024 as the ability for investors to support the industry is diminishing due to the higher cost of funds. In order to progress, the UK Government needs to recognise the long-term benefit of the sector and support investment in the industry.”

Baber concludes: “As we look to 2024, AI development will have the biggest impact across the fintech industry, maximising customer experience and data security, helping the sector grow. The UK Government must recognise the value of the fintech industry as we enter the new year, supporting investment and green business. Digital payments continue to dominate the payments scene, and exciting advancements will emerge across the fintech industry in 2024.”