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In 2024, fintech solutions will help businesses of all sizes deliver truly personalized customer experiences while also achieving more robust and reliable data security.

Meanwhile, regtech solutions will assist companies in remaining compliant in the face of an increasingly stringent regulatory environment.

In this article, we will take a closer look at some of the key products, services, and trends that will dominate the fintech and regtech industries in 2024 and beyond.

1. SaaS – Distributed Cloud Systems and Open Banking APIs

In recent years, the financial services industry has turned to cloud technology for fast, secure, and reliable communication and collaboration across different sectors and time zones. In the coming year, we can expect to see initiatives from platforms that make it as easy as possible for any firm providing financial services to migrate to using cloud services. This will contribute to the ongoing growth of the Software as a Service (SaaS) industry.

In 2023, several governments across the world began introducing stringent new online safety regulations, a trend that will continue in the coming years. This will lead to discussions about distributed cloud systems and how they may help incumbent banks provide the agility and flexibility that customers now expect. However, some institutions will naturally wonder how they can enjoy the benefits that distributed cloud systems offer while still complying with privacy regulations such as GDPR.

The cloud is not the only technology that will foster communication and collaboration across the industry. In 2024, we will also see the continued prevalence of open banking API integrations, which allow third-party developers to build powerful applications and services for financial institutions.

Open banking API systems enable fintech providers and banks to securely share data and insights, allowing for more personalized financial services and an improved customer experience. One study predicts that the number of global open banking API calls may grow by 645% in 2024.

2. Blockchain

Know Your Customer (KYC) specialists are increasingly looking to blockchain technology as a means of streamlining the business KYC processes.

For a long time, business KYC procedures relied on consulting centralized systems and databases, which were not only time-consuming but also vulnerable to cyber breaches and hacking attacks. This meant that customers had to endure lengthy approval processes along with inherent security risks.

Blockchain, on the other hand, allows for every piece of information to be stored on a highly secure decentralized ledger, significantly speeding up the approval process. Moreover, this increased security is coupled with enhanced transparency, as all parties involved can view and verify every step of the approval process.

Blockchain for KYC benefits both businesses and customers. Customers can receive rapid approval with the assurance that their data will be completely secure at all times. Meanwhile, businesses can enjoy faster identity verification, protecting themselves from fraudulent activity while meeting relevant anti-money laundering regulations.

3. The Rise and Rise of AI

According to one study, generative AI will be used in 70% of new app development processes by as early as 2026. In 2024, growing numbers of financial institutions will increasingly rely on AI-driven compliance tools.

When it comes to compliance, AI and machine learning models are capable of processing huge amounts of data almost instantly, automatically detecting and highlighting any anomalies. Compliance requirements are always evolving, and AI models allow organisations to stay on top of their regulatory adherence.

In recent years we have also seen a lot of potential in how businesses can use AI to deliver a more responsive and personalised customer experience. AI chatbots can gather customer information to provide real-time insights into a customer’s financial health, so that the business can then tailor their products and services to meet their customer’s unique requirements.

Of course, any discussion about the potential of AI must also consider the associated risks, such as data security and customer privacy. However, if managed correctly, AI will help make 2024 a new era of regulatory adherence and enhanced customer services through the provision of truly personalized financial services.

4. Buy Now, Pay Later (BNPL)

BNPL allows customers to pay for products over time without dealing with complex and punitive interest rates. This means customers can make payments more manageable while having the peace of mind that their purchases will not affect their credit score or financial position.

This financing option is already hugely popular, with an estimated compound annual growth rate of 26.1% from 2023 to 2030. The benefits for businesses are obvious: More sales with fewer abandoned carts, plus all the good reviews and repeat purchases that derive from more satisfied and empowered customers.

In 2024, we can expect many fintech specialists to prioritize building flexible BNPL products for easy integration with eCommerce platforms.

5. Mobile Payments

One study predicted that mobile commerce will account for 8.7% of total retail sales by 2026, with the number of unique mobile payment users expected to exceed one billion by 2024.

Meanwhile, the growing popularity of embedded payment systems on online platforms may further accelerate the growth of mobile payments. In 2023, the embedded finance market is worth $43 billion. It is expected to grow to a $128 billion industry over the next five years.

Providing a Flexible, Innovative, and Dependable Infrastructure for Businesses of All Sizes

At Know Your Customer, we are eagerly anticipating the more connected, collaborative, and secure world that these fintech and regtech innovations will help create. We can assist you in streamlining your business KYC processes and delivering a smoother and more secure client onboarding experience.

Our platform and API provide access to over 300 million official company documents and over 500 local registries from more than 130 countries. With our services, you can quickly transform your due diligence processes into a fast and seamless experience for everyone, from your end customers to the regulators.

Make 2024 the year you digitise and automate onboarding processes for your organisation.

Experience the benefits of our Live Registry Solution and Automated UBO Engine to drive secure cross-border growth for your business.

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Stephanie Zhu

Stephanie is currently the Senior Marketing Manager, APAC at Know Your Customer. With over a decade of experience in 360-marketing, including marketing strategy, brand development, and digital marketing, Stephanie has worked across various industries and geographies in APAC including AXA, Procter and Gamble, and trade.io. A seasoned marketer and entrepreneur, Stephanie also founded Cotton Pigs, the first reversible organic baby clothing line in Hong Kong, back in 2019.