In 2023, the FinTech industry faced a challenging macro environment, with record lows in investment due to higher interest rates and market volatility. However, experts predict a resurgence in 2024, with recent large fundraises indicating a positive trend.
Here are the key takeaways from industry experts:
- The macro environment in 2023 saw a decline in capital raising for seed and early-stage startups due to economic uncertainties and investor pullback. However, experts remain optimistic for 2024, with opportunities for risk-takers.
- Artificial Intelligence (AI) is expected to play a transformative role in FinTech in 2024. It has the potential to reduce costs and provide a competitive advantage for financial services companies.
- The impact of Environmental, Social, and Governance (ESG) factors on FinTech will continue to evolve. Conscious investing and the consideration of long-term implications beyond immediate impact are important.
- Buy Now Pay Later (BNPL) is seen as a complex but potentially powerful credit product. Its use cases vary across different regions, with caution for social risks and the need to understand its impact on customers’ financial condition.
- The remote work trend reshapes the FinTech industry by offering flexibility and inclusivity. Remote work is expected to increase, leveraging talent from emerging markets and providing opportunities to a more diverse population.
The future of FinTech remains uncertain, but experts believe that 2024 will see a resurgence in investment and the adoption of new technologies like AI. The role of ESG and the impact of BNPL will continue to be explored, and remote work will shape the industry’s workforce.
