In the coming year of 2025, experts anticipate a robust 17.4% growth in the digital assets market. Likewise, McKinsey & Company forecasts a steady rise of 15% per year in fintech revenue from 2022 to 2028. By the year 2030, fintech is projected to reach an impressive USD 882.30 billion in value, driven largely by the increasing popularity and usage of financial apps and digital platforms among consumers worldwide.
Looking towards 2024, the economic environment presents significant challenges due to ongoing downturns in various sectors. Despite these uncertainties, the integration of artificial intelligence (AI) is proving to be transformative for both fintech and banking industries. AI technologies are being deployed to enhance operational efficiency, optimize processes, and refine decision-making within financial institutions. This technological advancement not only helps in navigating current economic pressures but also positions these sectors to adapt and thrive in the future, fostering resilience and sustainable growth.
Exciting Fintech Trends Forecasted for 2024
In 2024, the fintech landscape is poised for some groundbreaking developments. Here are a few exciting trends to look forward to:
1. Digital Banking App
The banking industry is changing rapidly, driven by the growth of Application Programming Interfaces (APIs). APIs allow banks to collaborate with fintech companies, making it easier to share data and innovate. This shift is transforming the way banks operate and provide services to their customers.
The benefits of APIs in banking are significant. For example, customers can expect to receive personalized financial advice and have more confidence in fintech apps. In fact, the use of APIs in banking is expected to increase by 645% in 2024. Additionally, mobile commerce has continued to grow, with an 8.7% increase despite the pandemic. This is largely due to the convenience of using apps anytime, anywhere.
2. A wide array of AI applications
AI capabilities are instrumental in revolutionizing business operations, significantly improving efficiency and paving the way for enhanced revenue streams. This transformation is particularly evident in sectors like fintech and banking, where AI applications span robotic advisory services, risk management, credit analysis, and algorithmic trading. These technologies streamline processes, enable more accurate decision-making, and optimize resource allocation, ultimately bolstering financial performance and future-proofing organizations against market challenges.
Additionally, AI-powered features are reshaping customer interactions and service delivery paradigms. Innovations such as gamification, chatbots, voice and facial recognition, personalized recommendations, and advanced fraud detection not only enrich customer experiences but also empower users to make more informed decisions. By integrating these capabilities, businesses can cultivate deeper engagement, foster trust, and create a more secure environment for transactions, thereby driving sustained growth and competitive advantage in the digital age.
3. Increased stability in the payment process
Users of financial technology are always on the lookout for better options. Digital payments are seen as more environmentally friendly compared to traditional methods like credit cards. The trend toward cashless transactions is strong in today’s market.
Popular services such as mobile wallets, peer-to-peer transfer apps, and QR code scanning for easy payments at stores are in high demand. These technologies make it simpler and quicker for people to make transactions, meeting the growing preference for efficient and eco-friendly payment solutions worldwide.
4. Enhanced security and privacy for applications
The fintech industry is adopting AI-driven voice and facial recognition to fuel its growth, especially as the digital products market is set to reach US$152.20 billion by 2024. This technology not only makes using apps easier but also ensures they are secure, addressing concerns about trust in banking and fintech applications. Protecting sensitive user data is crucial as these apps become essential for managing finances. By using advanced biometric authentication, these technologies improve user experiences while safeguarding against cyber threats, boosting confidence in fintech innovations.
5. Business Consolidation
In 2024, there will be more mergers and acquisitions in fintech as big companies team up with banks. They’re combining their strengths—like technology and large customer bases—to offer better services. At the same time, there’s a rise in new fintech startups, building on the growth seen in 2023. These startups are bringing fresh ideas to finance, making it easier and more innovative for consumers to manage their money.
6. Embedded fintech risks
Finding the Perfect Fintech App Designer
The Indian Fintech industry is set to reach $110 billion by 2024
The Indian Fintech industry is estimated to be around $110 billion in 2024 and is projected to reach about $420 billion by 2029, with a cumulative annual growth rate of 31%. This growth is expected to be driven by factors such as the government’s push towards a digital economy, coupled with a young and tech-savvy population.
The Fintech industry in 2024
The financial technology (fintech) industry is experiencing significant growth, driven by innovative solutions that are transforming the way people and businesses manage their finances. Banking as a service and embedded finance are gaining traction, offering flexibility and convenience through A2A payments, digital wallet integration, and B2B “buy now, pay later” options for small and medium-sized enterprises (SMEs). Additionally, mobile financial services are on the rise, and the growth of ESG (Environment, Social, and Governance) sectors is also contributing to the fintech boom.
Fintech digital banking is revolutionizing the financial landscape by providing convenience, enhanced security measures, and support for financial inclusion. Moreover, it offers personalized feedback on financial decisions, empowering users to make informed choices. At Enginify Design, we specialize in crafting app designs that can help your fintech startup succeed. By partnering with us, you can leverage our expertise to create a user-friendly and intuitive app that meets the evolving needs of your customers.
Conclusion
The fintech industry is poised for significant growth in the coming years, but only if the right strategies are implemented and top-notch app creators and designers are brought on board. The success of your fintech startup hinges on the features, benefits, and additional value-adds you offer, as customers will only adopt your solution if it provides them with tangible benefits. If you’re planning to launch a new fintech startup this year, our fintech UI app design services in India can help you get off to a strong start. The fintech landscape is already being transformed by innovative startups like Razorpay, Paypal, Stripe, Wise, and Ramp, which are making a mark globally with their exceptional services.
