PriyaPatelIn a blog post, Kirsty Rutter, the fintech investment director at Lloyds Banking Group, shares her predictions for the fintech industry in 2024. She highlights several key trends including:
- The challenge of closing the digital divide: as technology continues to shape the way we live and interact, it is essential that older generations are comfortable using new technologies. There is also a rising demand for mobile apps among younger generations, which is driving the need for more “in the moment” responses.
- A potential increase in fintech funding: a decrease in interest rates could trigger more investment in fintech startups. However, there has been a reset in the investment market in recent years, impacting valuations for fintech companies.
- Fintech as a force for good: there is a growing focus on environmental, social, and governance (ESG) investment opportunities, with sustainable funds outperforming traditional funds. Rutter also highlights the need for more diversity in the fintech sector and urges businesses to consider their carbon footprints and social impact.
- The rise of artificial intelligence (AI): Rutter predicts that AI will continue to dominate the fintech market, with a focus on controls, values, and ethics. She also notes the potential friction between the demand for real-time personalisation and the need to reduce carbon emissions.
- The impact of open banking and digital wallets: Rutter highlights the potential impact of Apple’s use of open banking and Samsung’s digital wallet in the UK, which could change how consumers interact with money and financial services.
