February 29, 2024 yellowfryum

Fintech Trends 2024: Innovations Shaping the Future – Yellow Fryum

fintech trends covering b2b fintech investments, DeFI and AI in fintech

The fintech trends of 2024 have expedited the growth of the industry towards the era of DeFi transformation. The tech innovation area and changing business models are taking fintech to the new level of growth and performance.  Explore the key trends and developments shaping the B2B fintech landscape of 2024, offering fintech investment & insights into what businesses, investors, and channel partners can expect from this dynamic sector.


Evolving Technologies in Fintech

  • The Rise of B2B Fintech Solutions

B2B fintechs are becoming the pillars of the financial industry, providing many process automations and capabilities, increasing the access to the working capital as well as the alternative financing. This transformation is not just technological.

It is a new mindset, where fintechs become an inseparable part of the economic fabric, stimulating development and innovation within all the areas. “Fintechs:A new paradigm of growth” published by McKinsey projects a huge growth in the B2B fintech sector.

  • AI and Machine Learning Revolution

    By the year 2024, the AI and machine learning (ML) integration will transform the financial services into customized ones. Ai in fintech will bring change in the efficiency of the fintech solutions. With the capabilities of Ai based chatbots, the customers can receive 24/7 customer support with personalized responses improving the quality of the customer services.

    On wthe other hand, ML tools enhance credit risk evaluation by evaluating the massive data sets and provide more accurate outcomes than those of their predecessors. The improvement is not only about the enhancement of the precision and effectiveness of the services, but also it can be considered as the forefront of the innovations in the fintech sector.

    The new investments in AI and ML by fintech companies are steadily going up, with the global AI in Fintech Market predicted to soar from $7.91b in 2020 to $26b by 2025, at a very great growth rate of 23.37%. The amount of investments to these technologies is predicted to amount to many billions of dollars by 2024 therefore confirming their importance in driving the innovation forward.

  • The Expansion of Decentralized Finance (DeFi)

    The technologies behind Blockchain and DeFi (Decentralized Finance) are emerging, reshaping and creating new Finance models that were never thought of before. More than $100 billion is locked in: DeFi platforms, these technologies represent attractive options to the existing financial mediators, offering directly on the blockchain peer-to-peer: transactions, lending and borrowing.

    This would offer greater financial inclusion in the way of making transactions to be 80% lesser and much quicker than before reducing transaction period from days or hours to almost real time processing. Moreover, by implementing smart contracts, over 300 billion worth of assets can be managed by 2024, along with facilitating and securing contractual agreements automatically without human involvement, thus, enabling the operations to be faster thus reducing the chances of fraud by an estimated 99%.

    These technology advancements suggest a shift towards a more open, transparent, and efficient financial infrastructure, where high transaction volumes DeFi platforms are expected to exceed $1 trillion, far above this year`s and previous years` figures and pointing out to the rapid uptake of blockchain and Decentralized Finance (DeFi) in world`s financial markets. A report by Grand View Research outlines the market dynamics, including the advantages and risks associated with Decentralized Finance DeFi platforms. It highlights the expected significant growth of the DeFi market, with a projected CAGR of 46.0% from 2023 to 2030, read more.

  • Regtech

    Regulated technology (RegTech) is rapidly gaining a lot of importance in fintech, as a result of the growing regulatory complexity in different countries. AI and data analytics are the criteria by which the RegTech expenses increase to help the businesses’ compliance. From $6.3 billion in 2020 to over $16 billion by 2025, the global RegTech spending was projected to double, an indication that the market is going to expand further.

These statistics support the prediction of the B2B fintech trends for the year 2024. However, there is a possibility that numbers would not be the same as expected, because of technological progress, regulatory shifts, Decentralized Finance, and global economic climates. To be up-to-date with the information, it would be ideal to consult a fintech marketer for in depth financial analysis.


Key Fintech Trends 2024 to watch

  • Embedded Finance and Banking-as-a-Service (BaaS)

    Embedded finance, as per reports, will be close to valued $7 trillion by 2030, it is all about making financial servicing available in nonfinancial apps and platforms. This blending opens the way up to a new approach to financial transactions, including payments and lending, which can happen within popular websites, social media, and gaming platforms.

    Significantly, the Buy Now Pay Later (BNPL) systems, which is perhaps the most vital part of embedded finance, will handle transactions worth more than $680 billion by 2025. This seamless fusion increases the ease of use, and improves financial access to the 1.7 billion under-banked globally, and makes it possible for businesses to add more services. By eliminating the need to go to another app for a financial activity and redefining the ease of interactions, embedded finance is a game changer aiming to get a chunk (10%) of the global financial services market by making finance invisible to us.

  • The Emergence of Super Apps

    The rise of super apps is revolutionizing fintech by bundling a vast array of financial services into one platform. These apps combine banking, payments, fintech investment, and more, making it unnecessary to use multiple apps. As the global mobile payments market is projected to hit $12.06 trillion by 2027, super apps are strategically positioned to dominate this space, offering users a unified solution for their financial needs.

    With over half of global consumers desiring to manage their finances through a single platform, super apps respond by providing an all-in-one financial ecosystem, enhanced with solid security measures to protect user data, catering to the comprehensive financial requirements of billions worldwide.


Strategic Shifts and Investment Focus

  • Trends in Fintech Investment

    Fintech is showing huge growth and attracting more and more investments, as $210 billion was invested across 4,969 deals in 2021. It is noteworthy that venture capital funding for lending and wealth management made up more than 1/3 of all investments in 2021. Platforms for lending raised $22.5 billion which alone is a good indication of the potential in fintech investment.

  • Sustainable and Ethical Investing

    Factor in the size of over $30 trillion market valued in 2020 the practice of sustainable and ethical investing is led by rising ESG consciousness. Fintech platforms are the leaders in the frontline, supplying ESG screening and analytics tools, as a result of client’s increased demand for responsible investment and creating transparency.

  • Navigating Regulatory Changes

    Fintech firms are pro-actively adapting to regulatory shifts, necessary for sustainable competition and innovation, specifically digital lending and cryptocurrencies. Agility to accommodate the regulation changes will define fintech’s leadership in the market in 2024. The industry of cryptocurrency is to hit $4.94 bln by 2030.

  • Technological Priorities for CIOs and CTOs

    The rising cybersecurity threats have led CIOs and CTOs to make cybersecurity, ethical AI, and data analytics frontline priorities. It refers to the hotbeds of addressing the challenges and earning the opportunities in fintech, building up the robust technological and regulatory framework.



Based on the fintech trends 2024, the future is bright, boosted by technology development, strategic fintech investment-, and a compliance regulation of the frameworks. in 2023, fintech is experiencing an action-oriented transformation that’s focused on AI, ML, B2B solutions, and Decentralized Finance (DeFi) which is increasing efficiency and individualization in the provision of financial services. The industry is projected to witness a huge uptrend in growth, with Embedded Finance and BaaS being prominent trends. The evolution of super apps clearly shows a consolidation into a unified money platform which will alter the fintech landscape into a more integrated and user-oriented future.

Learn more about how marketing builds trust in banking and financial services and its impact on customer relationships.

FAQ Section

Q1. How is AI expected to transform the fintech industry by 2024?

  1. In 2024, AI is set to revolutionize fintech by personalizing financial services, streamlining operations, and enhancing customer support through AI chatbots. This technology will improve credit scoring and fraud detection by leveraging massive datasets for more accurate and efficient outcomes, marking a significant leap in fintech innovation.

Q2. Why are B2B fintech solutions becoming critical in the financial sector?

  1. B2B fintech solutions are emerging as foundational to the financial sector by automating processes, improving access to capital, and offering alternative financing. Their integration signifies a paradigm shift, weaving fintech into the economic fabric and driving widespread innovation and development across financial services.

Q3. What impact will DeFi have on the financial services landscape in 2024?

  1. DeFi is set to redefine the financial landscape in 2024 by fostering a shift towards decentralized, peer-to-peer financial services. This movement promises to enhance financial inclusion by significantly lowering transaction costs and times, managing over $300 billion in assets through smart contracts, and aiming to reduce fraud drastically.

Q4. What role does RegTech play in fintech’s evolution towards 2024?

  1. RegTech is rapidly becoming essential in fintech due to increasing regulatory complexities, employing AI and data analytics to streamline compliance processes. As financial regulations grow in intricacy, RegTech solutions are pivotal in ensuring that fintech firms can adapt and thrive amidst evolving legal standards.

Q5. How will embedded finance and BaaS influence consumer financial interactions by 2024?

  1. By 2024, Embedded Finance and BaaS are expected to seamlessly integrate financial services into non-financial platforms, offering unprecedented convenience and accessibility. This integration will facilitate a wide range of financial transactions within commonly used platforms, potentially transforming the financial experience for consumers worldwide by making financial services almost invisible.
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