Tech's Toast to 2024 - Issue 448 December 28th, 2023

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As we bid farewell to 2023, a year brimming with fintech innovations and challenges, FinTech Weekly extends warm greetings and looks towards 2024 with hopeful anticipation. The past year has been a remarkable journey through the evolving terrain of finance technology, leaving us both nostalgic and excited for the future. We stand at the threshold of a new era, eager to embrace the advancements and opportunities that await in 2024.

Join us as we delve into the predictions shaping the fintech world in the coming year.

Let's recap...

  • Fintech Predictions for 2024: Wider range of AI applications, growth in sustainable payments, increased adoption of stablecoins, shift of revenue models to SaaS, more mergers and acquisitions, heightened regulatory oversight, increased regulation around Decentralised Finance (DeFi).

  • AI Predictions for 2024: Nvidia expanding as a cloud provider, closure of Stability AI, decreasing use of "large language model" term, closed AI models outperforming open models, new Chief AI Officers in Fortune 500 companies, adoption of alternative AI architectures, regulatory scrutiny of AI startup investments, fraying Microsoft/OpenAI relationship, shift of hype from AI to crypto, U.S. court rulings on copyright in generative AI.

  • Banking Predictions for 2024: Generative AI in customer service and financial management, focus on sustainable finance, renewed interest in digital and cryptocurrencies, technology-driven customer experience enhancements, personalized AI-powered insurance, growth of open banking, increasing cybersecurity investments, automation in back-office processes, rise of blockchain in banking, emergence of Regtech.

  • Blockchain Technology Predictions for 2024: Advancements in blockchain interoperability, changes in Bitcoin fees structure, consolidation on the modular thesis, increasing viability of Zero-Knowledge Proofs, evolution in key management/user interfaces, censorship challenges, focus on security/privacy, corporate crypto adoption, layer-2 flows, potential layer-2 consolidation.

FTW Perspective

The predictions for 2024 herald a transformative phase for fintech, banking, AI, and blockchain technology. As AI applications broaden their horizons, they promise to bring a nuanced sophistication to fintech services, enhancing customer experiences and operational efficiency. The rise of sustainable finance mirrors a global shift towards ethical and environmentally conscious business practices, reflecting a deeper societal change. Blockchain technology, evolving beyond its nascent stages, is set to redefine interoperability and security, potentially reshaping the very foundations of financial transactions and data exchange.

Banking, traditionally seen as a bastion of conservatism, is on the cusp of an AI-driven revolution, where customer experience and back-office operations are streamlined for the digital age. Open banking is not just a trend; it's a movement towards democratizing financial data and fostering innovation.

As we look ahead, these predictions are more than just speculative thoughts; they represent the collective aspirations and commitments of an industry poised for groundbreaking evolution. The journey into 2024 is one of embracing change, challenging norms, and continually striving for a financial ecosystem that is more inclusive, efficient, and forward-thinking.

These revolutions in fintech, banking, AI, and blockchain are not just technological milestones; they are beacons of hope in a world often riddled with conflict and disparity. These advancements are a testament to the power of human ingenuity and the relentless pursuit of a better, more equitable future. In a time where division often takes center stage, the collaborative efforts to revolutionize finance and technology stand as reminders of our collective potential. They show us that amidst the challenges, there exists a steadfast commitment to building a world where financial empowerment and ethical practices are not just ideals, but realities.

As we look at these predictions, we're not just observing industry trends; we're witnessing the convergence of bright minds and visionary ideas, all striving towards a common goal – a world where progress and ethics coexist, where technology serves humanity, and where the financial wellbeing of one is interlinked with the prosperity of all. It's a reminder that even in times of strife, there are those who are tirelessly working towards crafting a future that is not only more technologically advanced but also more just, inclusive, and harmonious for everyone.

As we embark on 2024, our steadfast resolution should be to seize every opportunity and diligently work towards an inclusive and luminous future for all.

Top Stories

    In 2024, the fintech landscape is poised for transformative changes, according to industry experts Kirk Donohoe and Maryam Velasque. Key trends include a broader application of AI in finance, a shift towards sustainable and digital payments, rising adoption of stablecoins, a move to SaaS revenue models, increased M&A activities, heightened regulatory focus post-Brexit, and stronger oversight on Decentralised Finance (DeFi). These developments highlight a fintech industry at a crucial juncture of innovation and regulation.

    In 2024, AI faces significant shifts: Nvidia may expand into cloud services, challenging rivals. Stability AI could shut down amid financial woes. The lexicon around AI models is expected to evolve with advancing technologies. Closed AI models are predicted to outperform open-source ones. Fortune 500 companies might introduce Chief AI Officer roles. New AI architectures like Mamba could gain traction. Regulatory scrutiny on AI investments is anticipated. The Microsoft/OpenAI relationship may face challenges. Crypto could regain focus from AI, and legal battles over AI and copyright are likely to escalate, potentially reaching the Supreme Court.

    In 2024, the banking and financial services sector will be transformed by key trends such as the adoption of generative AI for customer service, a focus on sustainable finance, increased attention to digital and cryptocurrencies, and advancements in customer experience technologies. AI will play a significant role in insurance, while open banking will empower consumers. Cybersecurity investments will escalate to combat growing threats, and both blockchain technology and Regtech will become increasingly important due to efficiency needs and complex regulations. These developments point to a more efficient, ethical, and customer-centric financial future.

    In 2024, blockchain technology is set for groundbreaking developments. Key predictions include enhanced interoperability between different blockchain platforms, an increased focus on Bitcoin transaction fees, and advancements in modularity. Zero-knowledge proofs are expected to become more practical, while innovations in key management could revolutionize user interfaces. Censorship and security remain critical concerns, with strategies evolving to address these challenges. Corporate engagement in crypto is anticipated to grow, shifting towards product-based applications. Layer-2 chains on Ethereum may see increased activity and subsequent consolidation. These trends indicate a year of significant technological strides and evolving use cases in the blockchain sphere.

Top Events

    The 17th Asian Financial Forum returns in Hong Kong on 24 to 25, January 2024 to bring together global business communities, corporate leaders, policymakers and regulators for discussions and exchange of insights on the global economy from an Asian perspective. Early bird discounts are available until 30 November 2023 with the code S-AM14-ML (Standard Pass) | F- AM14-ML (Full Pass). Visit the official AFF website for more information and registration details: