Introduction
The FinTech industry is one that is constantly shifting and changing and at the start of the year there were numerous predictions on just how much the industry could achieve this year. In this week’s blog post, we briefly look at what has changed in the FinTech sector over the last few years as well as what could be in store for the future.
Regulations
Regulations within FinTech are of extremely high importance as they essentially are to ensure safety and mitigate against any fraud or money laundering schemes. From the tail end of 2023 going into 2024, Fintech regulation trends have slightly shifted to become more customer protection focused and this has ensured the overall safety of financial practices and making sure financial products are protected. As well as this, with the increase of AI (Artificial Intelligence) there are constantly new ways of going about regulations due to the changing technology around it.
Cross-border Payments
With the rise in international relations within the FinTech sector, there has definitely been more of an urge in a need for cross-border payments that stems from the greater need for financial inclusion. Cross-border payments are an integral part of FinTech as it opens up ways of connecting people with their friends and families abroad through finances all with just the tap of a button. With more and more companies realising the benefit of this, it is no doubt that there will be an increase in FinTech companies and start-up’s offering cross border payments throughout this year.
Promoting Financial literacy
Over the past few years since the pandemic, it is fair to say that FinTech Companies and start-ups have had more of a hands -on approach when it comes to promoting a greater sense of financial literacy amongst consumers. This is mainly seen through the amount of personal finance tools they have to offer; whether its budgeting tools or savings guides, there is definitely a stark difference in how appealing they are to consumers which can also be down to the effects of the pandemic.
Conclusion
From looking into a few factors to see how far FinTech has come and how much it is changing, it is quite clear that it has changed quite a bit over the last few years especially taking into account the role digital advances have helped shape the improvements in all of these factors. Ultimately FinTech is too much of a fast-paced industry for it not to change so frequently, and the future is definitely exciting.
