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PUBLISH DATE: Nov 13 2023
UPD: Jan 17 2024
Reading time: 13 minutes

FinTech Forward: 8 Pioneering Trends Set to Define 2024’s Financial Landscape

Do you want to learn about the key trends in fintech? This article will answer all your questions.

I. Introduction

A. A brief overview of the fintech industry’s evolution

Trends in fintech are constantly changing. Banking apps were the biggest trend ten years ago. Today, traditional banks can’t function without this technology at all. When did the fintech sector appear? Many alternative answers to this question exist. Some people even connect fintech with the rise of the Internet in the 1990s. In our opinion, the real history of the sector began in the 2010s. Why is this period special? Cheap Internet, smartphones, and cryptocurrency became mainstream at that point. All these technologies enabled banks to offer advanced IT services and analyze a lot of data. As a result, fintech advanced from “bank-in-a-pocket” apps to P2P lending in a decade. Statistics reflect this transformation in numbers. Statista reports that fintech apps grew from a $9 billion valuation in 2010 to a $247 billion one in 2023.

B. The significance of anticipating future fintech trends

Fintech is the future of finance because it improves many aspects of banking. It automates monotonous jobs and makes financial activities transparent. In this light, two groups of business specialists need knowledge of the sector. On the one hand, fintech experts must understand it to safeguard their projects. The inability to analyze industry trends results in product stagnation. On the other hand, business owners, in general, also benefit from this knowledge. They have to interact with banks every day, relying on their technology to function. Finding the best loan or deposit deals is easier when you know how this technology works. For this reason, the key goal of this article is to review the top fintech trends. 

8 pioneering trends set to define 2024's financial landscape

II. The Increasing Role of Artificial Intelligence (AI)

Finding a tech-savvy person who hasn’t tried ChatGPT yet is difficult. AI will soon enter all parts of our lives. It’s already embedded in many writing services. Finance and education are next. Here’s how this technology will impact fintech:

A. AI in financial data analysis.

Current Capabilities of AI

The first reason to use AI is data analysis. We believe AI will revolutionize this aspect of finance. How? Above all, AI can quickly analyze absurd amounts of data. This task is unachievable for humans. We’re great at making mental maps of reality, but there are limits to how much we can process. Contrary to that, an AI tool has enough processing power to quickly review even the smallest trends. For instance, the GPT 3.5 model used 45 terabytes of information, according to Inbenta. 

It can make interesting judgments based on the screen time per menu or peak activity periods. Yes, these judgments don’t use human logic. AIs are better at spotting irregularities rather than big trends. Nevertheless, such a strategy can help cut down on crucial decision-making time. Why? AIs assist us with spotting problems in things that are usually ignored. This element enhances the precision and effectiveness of decision-making. 

Enova: A real-life AI use case

Are there any real-life use cases of AI in finance? Yes! For example, Enova offers a high-quality service based on this technology. What is Enova? Enova is a fintech business that owns several loan and payment platforms. They all use its AI framework, Colossus, to ease decision-making. What are some interesting use cases? NetCredit, a bank service Enova owns, uses AI for credit score analysis. 

A common issue for young people is a ruined credit score. In a world of rising inequality, the majority must go into debt to survive. Not everyone repays it properly. As a result, getting a mortgage or buying a car becomes difficult. NetCredit solves this problem by using AI to go beyond credit scores. It analyzes many other factors apart from payment history. With this feature, customers can get approved for loans even if their credit histories aren’t perfect. In the future, we’re likely to see more services like Colossus. Current credit score systems are too limiting, so more flexible solutions are essential. 

B. AI-driven chatbots for customer support.

The rise of AI for fintech analysis is only beginning to affect the market. This technology is likely to reach its peak in 5 to 10 years. However, AI-driven chatbots for customer support will likely disrupt fintech much faster. Why? The reason is simple: this technology is already complete. All you need to do is adjust platforms such as GPT 3.5 or GPT 4 to your specific needs. 

Are there any chatbot use cases in the industry? Yes! One of the biggest credit card producers, Mastercard, already uses AI. It has a Facebook chatbot that can answer all your complex finance questions. For example, the platform knows how to find information about specific spending practices. You can ask this chatbot how much you’ve spent on restaurants or video games, and it’ll give you a correct answer. 

Many transaction questions aren’t difficult for chatbots. This automation helps customer support work more efficiently. Now, it can focus on the largest issues without wasting time on client information requests. Most banks will adopt such frameworks within the next two to three years. Some organizations such as Mastercard are already using them. 

III. Continued Rise of Blockchain and Cryptocurrencies

Man graph

A major financial trend in the 2010s was the rise of cryptocurrencies. They enable decentralized finance (DeFI) and blockchain. In this section, we review the benefits of the technology for the average customer.

A. Decentralized finance (DeFi) platforms

Benefits of DeFI

Decentralized Finance (DeFI) is a technology that removes intermediaries from financial transactions. A typical intermediary in modern finance is a bank. It stores your funds and calculates interest on loans and savings. The problem with this solution is that banks charge large fees for their services. Another challenge is that they only work in their home countries, making international business hard. 

DeFI solves both problems of traditional finance. Firstly, DeFI relies on algorithms rather than banks. Platforms like Aave aren’t centralized financial organizations. Instead, they’re open-source apps that function on multiple computers. As a result, transaction costs are minimal or nonexistent.

Secondly, the solution is Internet-based, so it doesn’t have to be tied to any country. Bitcoin is usable everywhere: you can borrow or invest funds without relying on any state-bound organization. All you need is an Internet connection.

Downsides of DeFI

The only issue with DeFi for now is its focus on cryptocurrencies. However, we believe big DeFi platforms will also target traditional currencies soon. The most likely pathway includes stablecoins, cryptocurrencies tied to state currencies like dollars. In this market, more and more private (Tether) and governmental platforms (hypothetical digital dollar) appear. Proper regulation can turn them into a new banking standard.

B. Banks are adopting blockchain for transaction verification

Existing practices

A major problem for many banks is fraud. Statista says that illegal activities cost them almost 1.6 billion U.S. dollars a year. Most incidents occur during fund transfers. The key reason why fraud is possible is the use of fake records. The perpetrators use fake documents or stolen identities to create bank accounts. They remain anonymous, hiding behind innocent people or fake personas. 

While this may sound incredible, some banks don’t properly control fake accounts. As NBC news reports, Wells Fargo became a target of multiple scandals due to its bad background checks. The company was opening millions of fake accounts to meet its growth targets. Most likely, other banks aren’t better: we simply don’t know the truth about them. 

How blockchain changes existing practices

Blockchain technology solves this problem to some extent. Yes, the cryptocurrency fraud ‘market’ is almost as big as the bank one. However, this issue doesn’t concern blockchain per se. It has to do more with low security standards in cryptocurrency exchanges. 

So, what’s so special about blockchain? It creates unalterable and open records about financial activity. Any person can review general data about all financial transactions. This approach makes money laundering difficult. According to IBM, it’s easier to track money sources now because all records are open. Yes, criminals create solutions to this trend. Bitcoin mixers hide money sources behind multiple transactions. However, those solutions won’t remain legal for long. In 2022, Tornado Cash became a target of major U.S. sanctions for helping North Korean hackers. In this light, government-regulated blockchain may become a major trend in the future.

IV. Expansion of Digital Banking and Neo-banks


A common criticism of capitalism is that it promotes monopolization. We don’t agree with it because technological progress tends to wipe out monopolies. Twenty years ago, mainstream banks seemed undefeatable. Today, they’re becoming less and less viable. Why? Nowadays, most consumers use the Internet, which has its own financial facilities called neo-banks. Why did they arise? Traditional banks are too inflexible to adopt all Internet innovations.

A. The fading role of traditional bank branches

In our opinion, the fall of traditional banks has to do with the rise of online banking software. We need to compare traditional banks with online ones to understand the transformation. Here are the key reasons for the gradual failure of traditional banks:

User-oriented nature

  1. Convenience. Online banking offers 24/7 access and doesn’t require offline registration. In this way, you save time on physical branch visits. Many traditional banks have online banking, but it’s limited. Taking out long-term loans is difficult within those systems. Opening an account with them is impossible without visiting a physical branch.
  2. Lower Costs. Digital operations reduce expenditures on the workforce: there’s no need to have offices. For example, Monobank, a major digital bank in Ukraine, has no physical offices. In this light, the business model of online banks is more sustainable. They can deliver lower transaction costs without lowering their profits. Traditional banks are so expensive because they need large workforces.
  3. User-friendliness. A common problem for traditional banks is service complexity. Loans or overdrafts demand advanced formulas for interest calculation. In many cases, clients feel defrauded by necessary but obscure fees. Regrettably, traditional banks also abuse this system and charge predatory fees. For instance, CBS News reports on “junk fees” that modern banks practice. Overdraft protection is an example of such a fee. It’s an expensive fee that prevents interest from accumulating. The concept is absurd: one de facto pays interest through this fee. Contrary to that, mobile apps and websites provide a user-friendly experience. They have high-quality interest calculators and give clearer terms. 

Better technology and coverage

  1. Wider Reach. Digital platforms let people use banks in places without many branches. Banks like Revolut are perfect for people in marginalized areas. They can finally use full-scale banking in low-income blocks or villages.
  2. Efficiency: traditional banks make an average money transfer inconvenient. Sometimes, the process takes several days because multiple workers must analyze transactions. In Germany, for example, the problem is so acute that fintech innovations are projected to reduce the number of banks from 1600 in 2018 to 150 in 2030. Why? The reason is simple: German banks still use outdated technologies like fax. They can’t compete with fast and encrypted online protocols of companies such as Revolut. As a result, consumers are leaving traditional banks and choosing online ones.

B. Digital-only banks and their growing customer base

Ultimately, the anemic nature of traditional banks opens the path for digital sector growth. We’re seeing more and more banks that don’t have any physical locations. Why are they popular? Those banks are convenient, accessible, and user-friendly. Current projections highlight that neobanks will have 350 million users worldwide by 2026 (as opposed to 146 million in 2021). PR Newswire expects that the neobank market will feature a 2 trillion dollar valuation in 2030. The compound annual growth rate will be 53.4% (from 2023). In short, the future of neobanks is bright. They’ll likely push traditional banks out of the private consumer sector altogether. This institution will survive only in business investment because an average company values reliability over speed. Traditional banks are slow, but the reliance on human labor allows for more complex services. As for the consumer sector, their dominance is over.

V. Growth in Peer-to-Peer (P2P) Lending Platforms

Many people

Considering that algorithms remove the need for banks, some people decide to abandon centralized platforms altogether. In this light, we see the rise of so-called peer-to-peer lending. Here are the key elements of this digital transformation: 

A. The democratization of lending and borrowing

A major problem for modern banks is their authoritarian control over money. Due to it, people can’t define the terms of borrowing and lending in financial markets. This task falls to experts and managers, who focus on company well-being. The Internet removes this authoritarian element from banks. How exactly? It allows financial connections without intermediaries. Two individuals can contact each other and create a lending contract independently. Internet users now get to decide what constitutes good or bad loan conditions. 

This democratization is vital because it opens up borrowing opportunities for two groups. Firstly, low-income borrowers can find loan opportunities at low interest rates. Secondly, people with bad credit histories may find investors, too. Yes, the conditions are likely to be strict. Still, getting funds is possible through the use of such platforms. With P2P lending platforms, people are no longer bound to banks.

B. Challenges and opportunities for P2P platforms

Modern P2P platforms present a set of challenges and opportunities. Here are some of them:


  1. Regulatory Hurdles. P2P lending faces varying regulations in different regions, which can limit its growth. Some companies are abusing P2P lending by offering exorbitant interest rates. The market needs major regulation to prevent loan sharking. Yes, P2P loans can be more advantageous than bank ones. But, P2P platforms usually give such loans to the most reliable clients.
  2. Default Risk. P2P borrowing is especially dangerous for investors. Why? Borrowers might default, causing losses for them. The key problem with many P2P borrowing platforms is that they promise outrageous returns on investment. How do they do this? They charge gigantic fees and interest. The only people ready to consider such terms are serial debtors, according to Journal of Corporate Finance. This means the probability of non-payment is too high. Safer P2P loans exist, but they offer nothing special to investors. Their real benefits are only sometimes higher than those of a savings account.
  3. Market Saturation. Intense competition can make it difficult for platforms to stand out. There are countless independent lenders and lending companies. As a result, optimal loans with low risks and high yields are difficult to find. P2P organizations tend to become microlenders with many failed investments and absurd interest rates.


  1. Financial Inclusion. P2P lending can provide access to credit for underserved populations. Yes, this credit will have high interest rates. Still, even an aggressive loan for a welding or coding course can be life-changing because its user may get a high-income job and repay it fast.
  2. Diversification. P2P loans are a type of investment for lenders. Using it, investors can diversify their portfolios, reducing risk. If you know how to analyze market data, P2P lending platforms may become a perfect investment choice. Yes, they’re risky. However, this risk isn’t constant: sometimes, it’s possible to find great deals.
  3. Innovation. P2P lending promotes innovation in the whole banking sector. It puts individual funds at stake, since independent investors risk their savings. In this light, credit risk analysis becomes especially vital. P2P lending uses some of the best analytical tools on the market. Other banking organizations can adopt these innovations to boost their services.
  4. Global Reach. P2P lending can expand internationally, reaching untapped markets. Thirty thousand dollars isn’t a big sum in the U.S., but it can be life-changing in Eastern Europe. 
  5. Lower Costs. Operating online results in lower overhead and fees for users. The absence of offices lowers costs.

C. Buy Now Pay Later as an outcome of P2P development

Buy Now Pay Later (BNPL) is an increasingly popular financial service. Traditional consumer loans are, in fact, anti-consumer. Bankrate reports that the average interest rate in October 2023 is 11.43%. If you buy a 2000-dollar laptop with such a loan and repay it in 2 years, 11% of your payments will go towards interest. BNPL services solve this problem by being peer-to-peer. They offer fixed rewards for investors instead of interest rates. As a result, you don’t have to waste between a 10th and a quarter of a product’s cost on interest. Typical lenders are investors or shops themselves. 

The only downside of BNPL is its short-term nature. You have to pay off your product quickly or face large fines. These services are perfect as an alternative to payday loans. They aren’t great for long-term purchases. Banks and P2P organizations risk a lot with them. This means they penalize people for missing payments strictly, as CBS reports. You should search for specialized car or equipment loans if you can’t pay fast. But, if you know you’ll be able to repay quickly, BNPL is the best option.

VI. The Evolution of Robo-Advisors in Wealth Management

People with boards

We’ve already mentioned that AI can utterly transform the financial sector. Algorithmic analysis, however, appeared before the rise of platforms like ChatGPT. Robo-advisors use advanced algorithms to advise on investments and even regulate them. Let’s review the key trends in this sector:

A. Customized, algorithm-driven financial advice

Algorithms aren’t as flexible as AI but still work in many situations. The modern market knows many bad financial investment practices. Robo-advisors can detect those patterns and report them to you. What are some of the worst things you can do? 

Avoiding short-term and concentrated investments

1) Firstly, trying to time the market and predict short-term fluctuations is a bad idea. Binary options use this approach as a business model. Multiple countries, including Britain, openly call this model gambling. There’s no reliable way to predict this market. A robo-advisor can detect such short-term trades and warn about them. It may also dissuade you from using binary options platforms. 

2) Secondly, a big mistake is focusing too much on one asset. For example, putting all your funds into Apple stocks is a bad idea. Why? You can’t predict all market trends. Apple’s valuation may fall due to a bad product. Black swan events are common: there’s no guarantee Apple Vision or some other product will succeed. A robo-advisor will instead offer several investment options. This approach will help you hedge your losses and have a portfolio with long-term advantages. Diversification is the key to financial prosperity.

Avoiding hype

3) Lastly, a common problem for investors is that they invest in hype stocks. One of the biggest examples of such hype was the GameStop incident. In 2021, investors from the WallStreetBets subreddit started to mass-invest in GameStop, boosting its valuation by almost 20 times in a short period of time. According to Esquire, the key motivation was to contradict market bears (people who bet on valuation decreases). Several high-profile investors were skeptical of GameStop, and Redditors decided to specifically hurt them. For WallStreetBets, this event was purely ideological. GameStop is a large-scale video game retailer. The company’s decline had emotional value for many people who used to buy games there during their childhood. What was the problem here? Unsuspecting investors without Internet culture knowledge started investing in GameStop, too. Many of them encountered major losses. A robo-advisor could have informed people about this trend and prevented hype investments. 

As you can see, a robo-advisor detects bad investment habits and showcases good ones. This common-sense advice doesn’t require AI. For this reason, we expect robo-advisors to peak within the next 2 to 5 years.

B. The integration of AI for more nuanced robo-advisor services

AI chatbot robo-advisors

Robo-advisors can do a lot even without AI. Imagine how powerful they’ll become with the use of this technology. NASDAQ reports on several potential use cases for AI. Some of them will start disrupting the financial services this year. Firstly, AI chatbots can enhance the usual recommendation algorithms. The key problem with robo-advisors is that they can’t use language like humans do. Certain recommendations are difficult to understand for a non-specialist. A chatbot will be able to give detailed explanations for all investment options.

Large financial models 

Secondly, banks like JPMorgan adapt LLM (large language model) approaches to finance. LLMs analyze large amounts of information in different contexts. They then produce answers to user prompts based on statistical likelihood. A phrase like “I love…” will get different answers depending on its context. If a prompt implies a romantic context, the answer will be “you.” If it’s about food, products such as “ice cream” can be the answer. Using this simple model, ChatGPT produces outstanding results. Most people will never be able to tell if a text is human- or AI-generated. If you’re eager to learn more about AI functions, Elastic, a developer focusing on search products, offers a more detailed description of this technology in their blog. 

Considering the strength of LLMs, banks plan to use GPT-like models for financial predictions. What’s the idea here? Banking AI can analyze vast amounts of information and then make probabilistic predictions. It’ll be able to determine the future of the market based on its past performance. Many small trends are hidden in the data. With this technology, banks will be able to spot fraud or insolvency before the general public can see it.

VII. Enhanced Cybersecurity Measures in Fintech

Laptop graph

The rising complexity of our technologies helps us solve increasingly difficult tasks. For example, modern machine learning tools can now create human-like texts. What’s the problem here? The more complex a system is, the more control it requires. Even simple apps have bugs. If you increase their size, the number of bugs will inevitably grow.  As a result, the key goal of this section is to discuss how to boost security measures in fintech. More importantly, we’ll showcase innovations that the sector produces to prevent threats.

A. The increasing threat landscape

Before we proceed with recommendations, we must see what threats exist. The more fintech technologies appear, the higher the likelihood of malignant attacks. AAG IT support company has important information that supports this conclusion. Here are some vital cybersecurity statistics:

General finance threats

  • Last year (2022), hackers exposed nearly one billion emails. In this way, almost 20% of the Internet population was affected. 
  • 1 in 2 Americans encountered account breaches in 2021;
  • Just in the first half of 2022, approximately 236 million ransomware attacks occurred;
  • Between 2019 and 2020, the number of cyberattacks grew by 358%. The transition to distance work made most companies more vulnerable to outside attacks.
  • An average data breach costs 4.35 million dollars.
  • Fintech-specific statistics also confirm the rising number of threats. Credit card fraud leads to $32 billion in losses annually, according to Statista. Exposing one’s account is simple. An insecure mobile network can open up your account password to many types of fraudulent activity.

Cryptocurrency threats

Modern cryptocurrencies also suffer from advanced cybersecurity threats. One of the most widespread threats is a clipboard injector. How does it work? You need a long link tied to your specific account if you want to enable cryptocurrency transfers. A clipboard injector waits for a moment when you copy your link. Then, it pastes the link of the perpetrator instead. You’ll lose your funds if you’re not attentive and don’t double-check the content. Any payment for your services will go to criminals. A recent report indicates that such tools disguise themselves as Tor Browser and other popular apps. Ultimately, CNBC reports that cryptocurrency scammers stole $14 billion in 2021. This figure rises every year, regrettably. 

B. Existing threats

The modern fintech market faces multiple threats that can disrupt it. Here’s a comprehensive list of all the cybersecurity problems you can face:

Traditional Methods

  1. Data breaches: bad encryption or weak passwords can lead hackers into bank databases. Using them, they steal data belonging to millions of people. Criminals then use this financial information to target specific victims.
  2. Phishing attacks: a phishing attack uses software or social engineering to steal login data. Criminals can present themselves as bank representatives and ask for a PIN code. A common approach is to send infected files via email. With this data, criminals can enter your account and steal funds.
  3. Ransomware: some criminals weaponize encryption. What do they do? They create malware that encrypts your hard drive and blocks access to data. If you don’t pay, they’ll later delete it. Work computers can have vital projects; as a result, some companies have no choice but to pay. Ultimately, there’s a simple way to avoid ransomware: make backups via the 3-2-1 rule
  4. Code vulnerabilities: a common issue for banks is the low quality of their code. A backend or frontend problem can be a perfect entryway into your systems. Consequently, you should invest as much as possible in experienced developers and good testers. 
  5. Blockchain vulnerabilities: despite their ‘unbreakable’ reputation, many blockchain technologies are vulnerable. Investopedia reports at least 72 proven cases of breaches. Distributed ledgers allow the perpetrators to easily review their code for vulnerabilities. 

Social attacks

  1. Insider threats: this threat comes in two forms. Firstly, your employees may be careless. Some people use basic passwords and expose whole companies to hacking. Credential stuffing is another common problem: people reuse passwords and logins. After receiving access to one password, the hackers then enter all accounts. Secondly, certain employees may have more sinister intentions. For example, North Korean hackers work for American IT businesses as freelancers, according to PC Mag. They fund their country through their rewards and steal data from big companies.
  2. DDoS attacks: DDoS attacks, or distributed denial-of-service attacks, are a common type of attack. The idea is to overwhelm the servers hosting an app or a site with many requests. In this way, one denies access to this website. In most cases, this only leads to disruptions in everyday work. However, a DDoS attack can expose bugs in your system and open it up to major breaches. In this light, you should invest in anti-DDoS services such as Cloudflare.
  3. API security and third-party risks: most businesses use outside solutions for some parts of their code. A common approach is to invest in various APIs and third-party libraries. The problem here is that they expose you to many new risks. Any error in a library or API can make your entire platform vulnerable. In this situation, the most rational choice is to audit all outside code extensively.
  4. Social engineering: many hackers find vulnerabilities in human behavior. They pose as company employees or government officials to get information. In this way, even the most secure system can become vulnerable. One confusing call from a ‘superior’ may end in a massive company hack.

C. Innovations in fintech security protocols and devices

Modern fintech organizations have created many security protocols to counter the presented threats. In our opinion, most of those systems will soon become a part of governmental standards.

New authentication methods

  1. Biometric Authentication. Many attacks rely on devices or protocols that host passwords. If you know this password, hacking a system is simple. Biometric authentication solves this problem once and for all. It ties a person’s password to their physical characteristics. Typical approaches are to use fingerprints or eye scans. Breaking these systems without the consent of their users is impossible.
  2. Multifactor Authentication (MFA). A common security option is to create several layers of access. How do banks achieve this? They ask not only for passwords or PIN codes, but also for unique phone authentication codes after one enters them. Is this system entirely safe? No. Today, hackers know how to steal phone numbers by manipulating mobile operators. As a result, we expect MFA key devices to become mainstream. They come in the form of small chips connected to smartphones or PCs. In this way, MFA will involve both hardware and software security. PC Mag has a good overview of the existing MFA chips.
  3. Tokenization. A common pathway of attack includes a person’s credit card credentials. For instance, fake sites may have legitimate forms to collect information on CVC codes. Tokenization removes this problem. It allows one to pay with a token. This token doesn’t possess any revealing information. In this way, even if the criminals steal your token, they won’t be able to use it.

Transparency-centric frameworks

  1. Zero Trust Architecture. Recent hacks have taught security specialists that nobody deserves trust. Attacks can come from any direction. In this light, zero trust frameworks appear. Their idea is to constantly check everyone accessing a financial system. Access isn’t given based on account rights. Instead, zero trust systems analyze all behaviors of a person. They look at their device, location, and even time of day to grant access. Any irregularity can signal a security breach, enabling a safety lock. Yes, this system may be uncomfortable for users, but it also minimizes risks.
  2. Blockchain and distributed ledger technology: Blockchain itself has major security breaches. Nonetheless, it’s a great tool if used in combination with more secure methods. Blockchains are usually fully transparent. In this manner, they enable one to track all transactions. Even if someone stole your funds, finding them isn’t an impossible task. The blockchain becomes a perfect framework for disrupting fraud.

Analytics tools

  1. Behavioral Analytics. All users have unique use cases for certain apps. If you observe them, it’ll be possible to understand some patterns. Behavioral analytics involves this exact process. The idea is to look at the way a person behaves to predict their future activities. If there are any irregularities, a notification can prevent any intrusions. The most security-conscious individuals can even block their account immediately if something goes wrong.
  2. Artificial Intelligence (AI) and Machine Learning (ML). A good way to promote pattern recognition is to use modern AI and ML. Those systems can process vast amounts of information and find patterns in it without human intervention. More importantly, they’re self-learning. AI goes beyond algorithms; it can recognize new patterns and learn how to react.

Device security

  1. Endpoint Security. This approach to security is about optimizing the existing strategies. A key problem for security is that it demands many resources to cover all potential vulnerabilities. In this light, the idea to focus on endpoints arose. What are endpoints? These are devices that send and receive data. Some examples include servers or smartphones. By focusing on them, we maximize our efforts because they possess the highest risk levels. Why? These tools are usually complex: as a result, they have the majority of vulnerabilities.
  2. Cloud Security. Cloud security works in two ways. Firstly, you can defend your site against DDoS by storing it in the cloud. Cloud servers are more resilient to junk requests. Secondly, cloud security helps prevent data encryption and deletion. If you store your project information in the cloud, losing it is almost impossible.
  3. Quantum-Resistant Cryptography. In the upcoming 30 to 50 years, we’ll see the rise of quantum computers. These computers can calculate faster than any available device today. What’s the problem here? They will decrypt our encryption protocols in mere days. Quantum-resistant cryptography removes this threat by creating new protocols. They’re so complex that even full-scale quantum computers will need hundreds of years to break them. This approach may seem too futuristic. Nonetheless, it’s better to be safe than sorry. Government organizations already require frameworks of this type to function safely. After all, multiple political rivals try to develop quantum computers, and won’t hesitate to use them against the competitors.

Strategic frameworks

  1. Threat intelligence and information sharing. Why were epidemics so deadly back in the day? We simply didn’t know what to do with them. Threat intelligence is akin to having virology laboratories but for computers. At first, you analyze the existing types of threats on the market by scanning data from multiple stakeholders. Then, you share information on removing these threats with all your partners.
  2. Red teaming and penetration testing. Some threats inevitably remain even in the most well-planned systems. Red teaming helps reduce those threats. What’s the idea here? A team of hired hackers searches for a way to enter your system and recommends how to remove the found threats. This safe hacking tests your system in real-life conditions, preventing unrealistic security expectations.
  3. Incident Response Plans. Sometimes, even combining all innovations won’t bring about positive results. What should you do then? You should have a clear plan for mitigating the damage. Why is an incident response plan so important? If someone breaches your fintech systems, this doesn’t mean they have access to everything yet. Such plans aim to minimize damage by locking down all other data sources. A fast response can reduce the impact of an intrusion to a bare minimum. 

VIII. Growth of user-friendly banking

Woman graph

What was a major problem for banks in the past? They were unfriendly towards the majority of the users. Let’s review three points at which modern banking moves away from the legacy of past systems:

A. Special needs banking

From the standpoint of individuals with special needs, banking was problematic in the past. They had to visit static locations and go through many documents. For many individuals, making sense of them was almost impossible. Special needs banking removes this concern once and for all. It does this through the following methods:

  • Better accessibility of physical locations (for instance, improved geographical spread);
  • Comprehensive online banking;
  • Alternative communication methods (sign language, video relay, TTY);
  • Assistive devices in branches;
  • Accessible ATMs with features like audio jacks;
  • Financial education and counseling tailored to disabilities;
  • Accessible statement formats (Braille, large print, electronic);
  • Designated disability-friendly access points;
  • Fee waivers or reduced fees for specific services;
  • Support for caregivers and guardians;
  • Legal and trust services for individuals with disabilities;
  • Collaboration with disability organizations for better support.

B. Transparent banking

Another vital transformation in modern banking stems from the rise of transparency. In the past, many banks were unfriendly. Understanding how a certain regulation worked was often impossible for a common client. As a result, various hidden fees were a widespread situation. In the modern world, we see the rise of a more transparent approach to banking. More and more organizations care about the well-being of their clients. They implement the following procedures to ensure users understand all aspects of banking:

  • Clear and Understandable Documentation;
  • Disclosure of Financial Products;
  • Accessibility of Information;
  • Timely and Accurate Reporting;
  • Educational Resources;
  • Customer Support.

C. Gamified banking

Lastly, a big trend in fintech user-friendliness is the rise of gamified banking. The idea here is simple: various financial activities become a part of some game. For example, Monobank (Ukraine) offers rewards for collecting money or buying in certain shops. Those rewards allow one to create and share a unique avatar with their friends. Why is this significant? Many people like games. As a result, one can promote positive financial behaviors by gamifying some aspects of finance. For instance, a challenge can ask clients to eat out at several restaurants. In this way, it’ll boost transactions within the platform. This is a fun way to attract clients to your service.

IX. Growing Influence of Regulation in Fintech

The final element we want to discuss here is the growing influence of regulation in fintech. More and more governments are paying attention to this field. Some of the biggest regulations include GDPR (General Data Protection Regulation) and PCI-DSS (Payment Card Industry Data Security Standard) in the European Union. It’s becoming increasingly difficult to function without paying attention to this legislation. In this light, a major trend is the transition to new standards. Many apps for managing security regulations are in development. More and more experts call this sector reg tech. Regulation technology helps make the implementation of various laws easy, according to Investopedia. If your bank targets a unique field, it’s a great idea to have industry-specific reg tech. In this respect, custom solutions are the best option.

X. Conclusion

To summarize, modern fintech has many trends. You should consider them all if you want to succeed in this sector. Problems with security or user-friendliness may lead to massive user losses. Ultimately, the shortest path to implementing new trends is to consult specialists. Keenethics has over eight years of experience in healthtech, fintech, and edtech fields. You can hire us to develop your high-quality fintech solution, too.

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Daria Hlavcheva
Daria Hlavcheva
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