2024 stands poised to be yet another transformative year in the world of FinTech. A variety of technology innovations – highlighted by AI – continue to revolutionize back-office operations in finance.
Companies finding success at the leading edge of FinTech enjoy a significant competitive advantage compared to the rest. It’s a case where early adopters are able to thrive!
Let’s provide a high-level analysis of some of the predicted FinTech trends for the upcoming year. Use this information to position your company to thrive in the financial industry’s continued digital transformation. Ensure your organization employs the right mix of talent for a successful 2024 and beyond.
What FinTech Should You Be Aware of in 2024?
Biometric Authentication Grows in Adoption
Digital security remains an important consideration in FinTech as well as the entire e-Commerce world. Customers and financial institutions both worry about cyber criminals stealing credentials and/or hacking into network infrastructures. As a result, many FinTech companies continue to introduce biometric authentication, making it an important trend for 2024.
Biometric authentication replaces the use of passwords and PINs to access financial resources online. The techniques include using face or fingerprint scanners to access financial apps or websites from a computer or smartphone. Expect the popularity and usage of biometrics to reach critical mass in the coming year.
AI-Powered Personal Finance Advice
Larger financial institutions continue to leverage AI to perform automated securities trades and similar use-cases. Expect this tech innovation to work its way down to individual consumers in 2024. Banks are beginning to offer enhanced chatbot financial advisors powered by generative AI to meet this need. Studies showing an increased trust in AI-powered chatbots in the wake of ChatGPT help drive this trend.
These AI personal finance advisors help consumers create budgets and even perform basic investing. Expect them to also help people manage their debit more effectively. This is one area where banks offering these services enjoy a significant advantage over those other slow adopter institutions.
The Growth of Open Banking APIs
Banks, financial institutions, and FinTech companies enjoy greater collaboration through the increased use of open banking APIs. This approach allows third-party developers to create standardized applications for use throughout the industry. It fosters the sharing of data and other information to improve efficiency and provide better customer experiences. Notably, Juniper Research predicts the usage of these open banking APIs to increase by 645 percent in 2024.
Need FinTech Talent?
When your institution needs an influx of IT talent experienced in FinTech, connect with The CERES Group. As one of the top technical staffing agencies in New England, we provide the top-shelf candidates your business needs. Schedule some time with us to discuss how we can optimize your staffing process.