Top 10 Disruptive Technology in Financial Services for 2024
As finance goes digital, technology and financial services have become inseparable, with fintech leading global investment. With over 26,000 fintech startups worldwide, the sector spans industries like retail banking, education, and investment management, driving significant market growth.
The global fintech market, valued at $25.18M in 2024, is projected to reach $644.6M by 2029. Acropolium, with 5+ years of experience in fintech software solutions, highlights key trends, benefits, and success stories shaping this dynamic market.
Technology in the Finance Industry: Market Projections
Fintech, a fusion of technology and financial services, has revolutionized business operations by shifting towards a customer-centric approach. The rapid adoption of fintech across sectors like payments, e-commerce, and banking is driving significant market growth.
As global e-commerce sales hit $6.5 trillion in 2023, the growing number of mobile users and the enhanced customer experience propel the market to new heights.
Now, let’s see the most adopted technologies in finance that reshape industry operations and move the market forward.
The Top 10 Financial Technology Trends in 2024
As technology evolves, some practices have established positions while others only gain traction with new data on their impact. We analyzed various disruptive trends in fintech to forecast the critical drivers for 2024.
Our research identified leading technologies in finance such as embedded and decentralized finance, digital and open banking, AI and ML, blockchain and cryptocurrency, and heightened focus on cybersecurity and compliance.
Embedded Finance for Seamless Financial Integration
Embedded finance integrates financial services directly into non-financial products, enabling companies to offer payments, lending, and insurance within their platforms. This approach enhances customer engagement and opens new revenue streams.
For instance, Amazon offers product insurance at checkout, simplifying the process for customers. The embedded finance market is projected to grow by 148% by 2028.
Digital Banking & Neobanks: Streamlined, Secure Experiences
Digital banking, particularly through neobanks, is transforming the banking industry. With swift mobile onboarding, secure transactions, and personalized experiences, neobanks are attracting tech-savvy customers.
The neobanking market is expected to reach 386.3 million users by 2028. Ally Bank, an online-only bank, exemplifies this trend by offering high-interest savings and competitive loans on a user-friendly platform.
Blockchain & Cryptocurrencies: Secure & Transparent
Fintech companies are leveraging blockchain for secure, transparent transactions in crypto exchanges, e-wallets, and payments. Blockchain technology in finance can reduce banks’ infrastructure costs by 30%, saving over $10 billion annually.
Our client experienced a 15% revenue increase and 22% customer growth after adopting blockchain for their crypto-asset platform.
Decentralized Finance (DeFi): Inclusive Financial Systems
DeFi, one of the financial technology trends built on blockchain, promotes open and inclusive financial systems by enabling lending, borrowing, and trading without intermediaries. Platforms like Uniswap offer direct transactions and greater transparency.
DeFi’s interoperability allows users to combine services and create complex financial products.
Open Banking & APIs: Innovation-Driven Revenue
Open banking uses APIs to allow third-party providers access to consumer financial data, fostering transparency and innovation. With over 100 billion APIs accessed globally in 2024, this trend integrates with various finance tools while ensuring security and compliance.
Tink, a European open banking platform, serves major clients like PayPal and Klarna.
Green Banking: Sustainable Financial Practices
Green banking stands among the emerging technologies in finance and focuses on reducing environmental impact and promoting sustainability. By embracing digital services, banks like HSBC, which has committed $100 billion to sustainable financing by 2025, are leading the charge with green loans for eco-friendly projects.
AI: Personalized Financial Services
AI is transforming fintech by enabling fraud detection, credit risk assessment, and personalized advice. The AI market in fintech is expected to grow from $44.08B in 2024 to $50B in 2029. One of our clients reduced contract review times by 75% using AI, significantly lowering operational costs.
Machine Learning (ML): Enhanced Predictive Analytics
Being a subset of AI, ML technology in fintech helps businesses analyze vast data sets for better decision-making. Another client of ours achieved a 95% data accuracy rate and improved scalability by 200% after implementing ML for data monitoring.
RegTech: Simplified Compliance
RegTech solutions help financial institutions manage regulatory challenges by automating compliance processes. Using AI, ML, and blockchain, RegTech reduces legal risks and streamlines compliance, making it essential in today’s complex regulatory environment.
Cybersecurity: Safeguarding Digital Finance
As fintech advances, so do cybersecurity threats. Companies like Square and Robinhood prioritize data protection by encrypting transactions and monitoring for suspicious activity. In 2024, payment fraud, ransomware, and data breaches remain the top concerns for fintech businesses.
Final Words
Modern IT trends in fintech offer transformative opportunities for businesses, reshaping financial operations and driving growth. At Acropolium, we’re here to turn these trends into game-changers for your revenue and customer experience.
From MVP development for fintech startups to deploying agile architecture, we focus on your business goals and ensure compliance. As an ISO-certified vendor, we deliver GDPR-compliant solutions that safeguard data integrity.
We also offer flexible pricing, including a subscription model with predictable costs and a streamlined workflow. Contact us today to revolutionize your financial operations!
