As we approach 2024, Jeremy Baber, the CEO of Lanistar, sheds light on pivotal trends expected to shape the fintech landscape, emphasizing the profound impact of Gen Z’s adoption of fintech services and the escalating usage of digital wallets. Baber underscores the role of AI adoption as a driving force behind ongoing innovations within the industry, particularly noting the speculation surrounding the development of super apps in Europe throughout 2023.
The year 2023 witnessed fintech’s noteworthy contribution to sustainability initiatives addressing the climate crisis, prompting Baber to stress the industry’s responsibility to address carbon footprint concerns. In his outlook for 2024, Baber calls for governments to actively support fintech development, encouraging a shift away from resource-intensive legacy services. He advocates for financial institutions to back green businesses through preferential loans or credit, emphasizing the importance of avoiding greenwashing practices.
Baber draws attention to the potential regulatory impact on AI, a technology integral to reshaping various sectors. He notes that any proposed regulations must aim to preserve, rather than hinder, the customer-centric services AI offers. AI advancements, according to Baber, play a crucial role in enhancing credit and application approval processes, streamlining the overall customer journey.
Addressing the increasing accessibility and scalability of the Banking of Things (BoT) in the fintech sector, Baber credits advancements in cloud computing, mobile technologies, and the digitization of payments. Looking ahead to 2024, he envisions a collaborative effort among device manufacturers and tech developers to standardize and enhance IoT practices, unlocking the full potential of BoT for both consumers and banks.
Navigating the new economic landscape marked by instability and rising inflation, fintech companies are compelled to prioritize customer-centric approaches, innovation, and cost-efficiency. Baber warns of potential challenges for the UK fintech sector in 2024 due to economic instability, calling on the government to recognize the long-term benefits of the industry and provide necessary support for sustained investment.
In his anticipation for 2024, Baber concludes that AI development will wield the most significant impact on the fintech industry, driving improvements in customer experience and data security. Stressing the need for government recognition, he calls for continued investment and support for green business initiatives. Baber anticipates exciting advancements in the fintech space, with digital payments continuing to dominate the payments landscape.
