Blog
2024 is shaping up to be a pivotal year in financial technology. As we step into this exciting era, it’s clear that innovation is at the forefront. From groundbreaking AI developments to the evolution of payment systems, let’s unravel what the future holds for the fintech industry and the challenges that come with the innovations.
AI: The Game Changer in Fintech
In the upcoming year, the role of AI tools in fintech and various other sectors is expected to grow significantly, leading to major changes in how businesses operate. The impact of AI is broad and far-reaching, influencing everything from operational efficiency to the personalization of customer experiences on a large scale. Its integration into internal processes, such as compliance and engineering, is transforming the way fintechs operate, enabling them to compete more effectively with larger banks and tech companies.
AI is instrumental in enhancing financial tools and automating critical business elements. This includes providing comprehensive financial overviews that cover compliance, benchmarking, costs, financial processes, treasury, accounting, and control systems. As we move forward, AI is a key driver in the evolving world of fintech, heralding a new era of automated, efficient, and customer-centric financial services. Combining machine learning and predictive analytics can help fintech companies make better forecasts and plans.
AI and the Customer Journey and Experience
Today customers expect omnichannel journeys with seamless experiences across all channels. Sellers are shifting to unified platforms that provide the most ideal customer experience. An essential component in the customer journey is payments, which will also need to evolve to keep pace with technological advancements.
Technological Advances in Payments
Payments will be significantly benefited by AI automation with an increase in the automated payments and transactions between humans and machines than ever before. Humans will be represented by artificial intelligence agents, and there will be an increase in the use of digital currencies and blockchains for machine payments. As new payment systems come into use, how we transact payments globally is set to change. The success of PIX in Brazil and UPI in India will inspire a similar implementation of accessible financial transactions globally. Business leaders must prepare for this shift by putting in place systems and accessing providers for digital assets in banking and payments.
Embedded finance, the practice of incorporating financial services into non-financial platforms, is becoming increasingly popular and is expected to evolve further. There’s a shift expected towards global providers offering fully white-labeled services, moving away from a focus on local providers. This change will likely lead to a wider adoption of embedded finance, giving resellers access to a broader range of products. An emerging trend is to view payments not just as a way to reduce costs but as a new source of revenue, and embedded finance plays a significant role in this approach.
Banking as a Service (BaaS) Advancements
2024 has seen an emphasis on regulation, compliance and Anti-Money Laundering (AML) measures. Finance teams are looking to integrate stricter compliance frameworks to their operations to keep pace with the regulations. A fallout of this added pressure to stay compliant with new regulations is an addition to the operational costs and added investments in compliance technologies. CFOs should also reevaluate their partnerships with BaaS providers regarding their ability to adapt and stay compliant with evolving regulations. It is essential to have closer relationships and better communication with these service providers while also preparing contingency plans in the case of any unexpected disruptions in services.
As part of treasury management plans, companies must maintain multiple partnerships and collaborations with banks and fintechs that are technologically sound.
In the swiftly evolving fintech landscape of 2024, staying abreast of compliance regulations in payments is crucial for BFSIs, banks, and fintech companies. These institutions need a reliable testing partner who understands these complexities to remain competitive and compliant. Tristha emerges as a pivotal ally in this regard. In 2024’s fast-changing fintech world, releasing reliable error-free payment solutions is critical, which is why at Tristha, we focus on First Time Right Testing. Our deep fintech expertise, solid testing methods, and innovative approach make us perfect for guiding businesses through new regulations and tech advancements. Choosing Tristha means you’re not just keeping pace with changes; you’re leading the charge in innovation. We’re dedicated to helping you make the most of AI, upgrade your payment systems, and stay ahead with the latest trends. With Tristha, you’re selecting a partner who’s ready to tackle the challenges and grab the opportunities of the future in fintech.
