THE fintech and financial services sector has seen extraordinary growth and transformation in recent years, reshaping the way financial technology companies interact with their customers and conduct business.

As we approach 2024, a number of significant trends are emerging across the fintech media landscape. From integrated payments to evolving regulations, fintech and finserv marketers must remain aware of these trends and develop distinct perspectives to ensure impactful media coverage in this rapidly evolving industry.

1. Embedded payments

Think about how you use your Uber app, where paying for your ride requires nothing more than a simple tap. While the process may seem simple from the user’s perspective, there is a lot happening on the backend. Integrated payments provide businesses and customers with a quick and easy way to pay for a product or service.

Integrated payments have exploded in recent years, particularly in the B2B fintech sector. Independent software vendors (ISVs) and other technology providers have discovered the value of having active payments within their platform, rather than creating unnecessary friction by sending their customers to a third-party site.

In DevPro Journal, Peter Galvin, chief growth officer at NMI, said: “…payment integration is vital for ISVs to ensure a seamless brand, UX and payment process when users interface with the their software platform.” This strategy improves user experience and opens a new revenue stream for fintech software providers by allowing them to monetize their payment solutions in collaboration with business partners.

Another aspect accelerating integrated payments is the growing prevalence of data sharing and open application protocol interfaces (APIs). Thanks to APIs, businesses and financial institutions can now easily delight customers and introduce new services with a simple click, eliminating the need to build their own proprietary infrastructure.

2. CFPB Regulation

Rohit Chopra, director of the Consumer Financial Protection Bureau (CFPB), has introduced several new regulations on the agenda for 2024. cut late fees on credit cards from giving consumers more control over their financial data to overseeing Big Tech’s entry into payments, there’s a lot coming in the second half of 2024.

These regulations will have important implications for businesses and institutions, especially when it comes to data. Fintech organizations will need to remain vigilant, keep abreast of new regulations and understand the requirements they place on them and their partners.

Following an executive order from President Biden earlier this year, Chopra made clear her intention to propose rules that would limit the activities of data brokers. In doing so, he underlined the need for greater protection to safeguard people and national security from harmful data practices.

The evolution of these regulations will have a significant impact on how fintech and financial services companies generate revenue, structure their operations and provide their services. Fintech organizations will need clear guidelines to ensure proper compliance and make necessary changes.

3. Financial inclusion

Financial inclusion remains a critical issue, particularly for populations historically marginalized or overlooked by traditional financial systems. Factors contributing to the exclusion of these groups include geographic barriers, insufficient documentation, high costs, and discriminatory practices.

Second Forbes, there are approximately 6 million unbanked individuals in the United States. Lack of access to traditional financial institutions not only perpetuates cycles of poverty, but also stifles innovation. Emerging markets around the world are poised to drive significant advances in business and technology, but face barriers to ensuring fair financial services. To address this problem, countries, such as Nigeriathey are prioritizing financial inclusion goals.

Innovations in financial technology have made significant progress in dismantling barriers to financial inclusion. Mobile wallets, real-time payments, cross-border payments, neobanks and virtual currencies stand out as some of the most noteworthy developments in the industry. Companies that leverage these innovations have the potential to make serious progress on inclusion, unlocking new opportunities and tapping into global talent pools in an increasingly competitive landscape.

4. The fintech AI gold rush

Like many industries, fintech and banking have adopted advanced artificial intelligence and machine learning technologies to drive advances in data analytics, automation, and personalization. As the industry continues to grapple with regulatory, privacy and security issues, more and more fintechs are incorporating AI into their product offerings.

Whether they are already integrating AI into their platforms or planning future adoption, banks and fintechs are making massive investments in AI-powered technology. A 2020 McKinsey report estimates that AI technologies have the potential to generate up to $1 trillion in value for global banks. These innovations promise to not only improve customer experiences, but also significantly improve financial outcomes by automating a range of tasks, from risk management and fraud detection to customer service and investment management.

5. Real-time payments and FedNow

The Federal Reserve’s launch of the FedNow service last summer marked a significant development in real-time payments in the United States, facilitating immediate processing of transactions.

By the end of 2023, Over 300 financial institutions (FIs) were using the FedNow service, and more are expected to join throughout 2024. However, while many FIs are willing to accept real-time payments, many are wary of sending them. Despite low fraud rates in real-time payments (e.g Clearing House RTP net is 0.1%), financial intermediaries continue to worry that real-time payments offer little opportunity to identify suspicious or fraudulent transactions, causing hesitancy to adopt real-time payment solutions or sign up for FedNow.

Nonetheless, real-time payments have the potential to fundamentally reshape the business landscape and economy, offering benefits that go beyond simple speed. For example, businesses will be able to gain better access to capital and cash flow because they will no longer have to wait for funds to be processed. Not to mention, real-time payments are transmitted with multiple data formatted according to a global messaging standardresulting in more efficient treatment for businesses.

As mentioned above, real-time payments also help promote financial inclusion. Beyond the B2B perspective, real-time payments could make it easier and faster for people to pay bills, access paychecks, and even support supply chain and healthcare financing to create smoother payment processes .

As a fintech organization, staying ahead of emerging industry trends is non-negotiable, and we’re here to help. Get in touch to learn more about how Walker Sands can help your fintech organization stand out from the crowd and stay ahead of the curve.

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