By: 16 January 2024

From Big Tech to generative AI, fintech experts share what they expect to see in the year ahead

Navigating the future: Fintech predictions for 2024

We have gathered insights from fintech experts, who have peered into their crystal ball, to share their predictions for the year ahead.  

Trends that will shape the industry, and offer a glimpse into the future of fintech, include digital wallets, Tap to Pay and the use of AI. 

Digital wallets and the impact of Big Tech 

Mark Brant, chief payments officer at NatWest, believes digital wallets will continue to change the nature of consumers’ relationship with their financial providers.  

He said: “Big Tech, in particular, is redefining not just payments, but financial services more generally and will build out their consumer proposition using adjacent services like Open Banking.  

“We expect to see more data and credit-driven products being developed by Big Tech over the next 12 months.” 

Tap to Pay  

Mike Elliff, chief executive officer of Tyl and Payit by NatWest, expects alternate payment methods to continue to grow and evolve. Last year UK contactless payments increased by 30%. And as contactless users grow, businesses must adapt to increase sales.  

Elliff said: “Tap to Pay enables businesses to use a smartphone as a card payment terminal, without the need for extra hardware.   

“The high street is evolving. Pop-up shops are on the rise, the mobile workforce is becoming more prevalent, and we see Tap to Pay becoming more popular across 2024 due to the convenience it offers merchants.  

“Tap to Pay aids businesses with seasonal or unpredictable revenue flows, providing merchants with a payment solution with no upfront costs or monthly fees.  

“By giving merchants the flexibility to take payments without the need for extra hardware or monthly fees, they can invest more time and money into providing the best service for their customers.”  

Reliability for customers  

Karine Martinez, head of sales at Edenred Payment Solutions, predicts BaaS companies will mature, and customers will prioritise reliability.  

“BaaS has been on quite a rollercoaster over the last few years,” Martinez said. “Lauded as the next big thing in fintech many people saw a significant opportunity in the business model, but a flurry of recent issues has shown it’s not an easy thing to deliver. 

“I think we’ll see a bigger focus from BaaS companies and their customers on reliability and compliance capabilities. The very core of the solution is to take care of these things so customers don’t have to worry, and this will be the only priority for businesses looking to outsource in 2024. Anything extra, no matter how new and shiny, will take second place.” 

Generative AI  

Rich Cooper, head of financial service go-to-market at Fusion Risk Management, foresees more implementation of AI and machine learning technologies that will transform operational risk management programmes at financial institutions.  

Cooper said: “New AI applications will require organisations to understand the opportunity but also the risk that this emerging technology provides.  

“It is anticipated that new AI regulators will be introduced that will require firms to effectively communicate how these technologies drive efficiency without introducing unacceptable risk.  

“Within risk, business continuity and operational resilience programmes, Gen AI solutions will mature to provide specific use cases tailored for areas such as plausible scenario testing and insights into the impact of assets like a location, third party or application failure.” 

Simon Axon, financial services industry director, international, at Teradata, also emphasises the role AI will play in 2024. Axon said: “Gen AI will start to transform and deliver hyper-contextualised customer experiences by deepening the understanding of customer needs and expectations.  

“Banks and insurers can respond with more authentic and relevant interactions to vastly improve customer engagement and loyalty. A great relief to everyone frustrated when they have to interact with today’s chatbot. This will drive revenue faster.” 

Image: Canva 

Josh Poyser
Josh Poyser is an editor at FinTech Intel. He has written about fintech for several years and appeared at FinTech Connect 2023 on the 'Unlocking Success: The Art of Fintech PR' panel.