Fintech Predictions for 2024

In 2024, the banking industry will face a complex landscape characterized by economic, technological and operational challenges. The International Monetary Fund (IMF) is predicting tepid global economic growth of only 2.9% coupled with a 4.8% inflation rate, signaling caution. On the operational front, asset liability management is expected to be a focal point, with financial institutions likely to make significant investments in cloud-based software-as-a-service (SaaS) and artificial intelligence (AI) technologies. McKinsey suggests that AI alone could yield annual cost savings between USD 200 billion and USD 340 billion. Technological modernization will extend into the payments sector as well, where instant payments (driven by the new ISO 20022 messaging standard) will be a game-changer but also escalate real-time financial crime risks. In lending, the push will be towards digitization to offer quicker, more personalized customer experiences. Amidst this volatility, there will also be a growing emphasis on strengthening environmental, social and governance (ESG) credentials. Against this backdrop, agile, tech-driven solutions and collaborative efforts will emerge as critical pathways for the industry’s long-term growth and success.