Expert in the field of international financial law Konstantin Kryvopust talked about the main fintech trends in 2024.
Against the background of a decline in investment in fintech last year, the first half of 2024 will be a very subdued start for the fintech industry, predicts KPMG in its Pulse of Fintech report.
Experts call the main fintech trends in the first half of 2024 the activity of mergers and acquisitions in the field of payments and regarding problem assets; huge interest in artificial intelligence; attention to corporate solutions, as well as active investments in the regtech industry (regulatory technologies).
Key predictions for the fintech industry for the first half of 2024:
1 M&A activity will increase in payments and distressed assets. Everything will depend on the stabilization of investment estimates and the narrowing of the gap between the expectations of buyers and sellers. This will be most noticeable in the field of payments, where consolidation is already taking place at the local, regional and global levels. A surge in distressed asset deals is also possible, driven by investors looking for opportunities.
2 AI will become a top priority. The huge interest in artificial intelligence in all sectors of the economy is likely to spread to the financial technology market. At the same time, special attention is paid to finding ways to make the most of AI capabilities. However, it should be noted that interest in AI may not translate into direct investment, as fintech market players leverage the technology through alliances and product spending. Major private equity opportunities are likely to focus on cybersecurity and regulatory technology.
3 Corporate solutions will remain the focus of fintech companies. Around the world, there is already a growing number of fintech companies that prioritize enterprise solutions, seeking to support or improve the operations of various financial institutions and their ecosystems, rather than directly targeting end customers. This trend will intensify in the first half of 2024.
4 Active development of the regulatory and legal environment will stimulate investments in the field of regtech. The regulatory framework will continue to evolve within and between regions. Europe will remain the clear leader in data security and privacy, while the Asia-Pacific region is likely to see jurisdictions implementing a clean regulatory framework for digital assets and digital money. The increasing complexity of regulatory requirements for the financial sector will keep the level of investment in regtech relatively stable.
