Nigel Green, CEO Of deVere Group Predicts 6 Fintech Trends In 2024

Cryptocurrencies, CBDCs, AI integration, cybersecurity…..As we look ahead to 2024, several key trends are poised to shape the landscape of the booming industry, affirms the CEO of deVere Group, one of the world’s largest independent financial advisory, asset management, and fintech organisations.

The fintech sector stands on the brink of remarkable growth and innovation, marked by various transformative trends. The ascent of cryptocurrencies and Central Bank Digital Currencies (CBDCs), the expanding footprint of artificial intelligence (AI), the surge in mobile payments, the intensified emphasis on cybersecurity, and the steadfast commitment to global financial inclusion collectively signal an era of dynamic change in the financial technology landscape. 

“2024 promises to be a dynamic and innovative period for fintech. We think it’ll go down as a landmark year for the sector”, says Nigel Green, CEO of deVere Group.

What trends will shape the fintech industry in 2024? Nigel Green, CEO of deVere Group sets his six predictions for the year ahead:

1. Rise of cryptocurrencies

Bitcoin, the leading digital asset, has witnessed a remarkable 155% increase in value over the past year, a momentum anticipated to persist. The influx of institutional investors, particularly through Bitcoin spot ETFs, is poised to play a pivotal role in this ongoing surge. 

Beyond capital infusion, institutional participation brings expertise, influence, and credibility to the cryptocurrency landscape. The increasing acknowledgment of cryptocurrencies by traditional financial institutions, coupled with regulatory clarity in numerous jurisdictions, is expected to propel these digital assets further into mainstream adoption.

“We predict that crypto will play an increasingly important role in diversifying investment portfolios and facilitating cross-border transactions, thereby reshaping the global financial landscape”, says Nigel.

2. Rise of Central Bank Digital Currencies (CBDCs)

Aligned with the surging prominence of cryptocurrencies, the emergence of Central Bank Digital Currencies (CBDCs) is poised to become a defining trend in 2024. Numerous central banks globally are engaged in active exploration or development of their own digital currencies, driven by the objectives of modernising payment systems and advancing financial inclusion. 

CBDCs present governments with enhanced control over monetary policy and the capacity to optimise financial transactions. Beyond that, these digital currencies hold the promise of diminishing reliance on traditional cash and augmenting the efficiency of cross-border payments, reflecting a broader shift toward the digitisation of monetary systems. 

Nigel says: “As more central banks pilot and implement CBDCs, 2024 is expected to mark a crucial turning point in the evolution of digital currencies within the mainstream global financial system.”

3. Fintech firms increase usage of AI

According to Mordor Intelligence, the market size of AI fintech companies in 2023 is expected to reach $42.83 billion and is projected at $49.42 billion in 2028. Some of the advantages that integration of AI in fintech boosted the industry in 2023 included personalised financial services, enhanced fraud detection (and consequent prevention), algorithmic trading advancements, and inclusive lending, and accurate risk assessment. 

Fintech businesses like Bank of America, Robinhood, QuantConnect, Blackrock, Kabbage, Feedzai, and Kount are already undergoing rapid transformation with the integration of AI.

“In 2024, the synergy between fintech and AI is expected to reach new heights, contributing to greater efficiency and innovation within the industry”, predicts Nigel.

4. Soaring demand for mobile payments

With the ubiquity of smartphones and the increasing popularity of digital wallets, consumers are enthusiastically adopting the simplicity of executing transactions with just a few taps on their mobile devices. 

The convenience of mobile payments not only aligns with the preferences of contemporary consumers but also presents prospects for advancing financial inclusion. By extending access to digital financial services, particularly in underserved regions, mobile payments contribute to fostering a more inclusive and accessible financial landscape.

“The convenience and accessibility of mobile payments have made them increasingly popular, and this trend is set to accelerate in 2024. Fintech companies are likely to invest further in developing user-friendly mobile payment solutions, fostering a cashless society”, says Nigel.

5. Focus on cybersecurity, including biometrics

“As fintech continues to advance, so do the threats associated with cybercrime. In response, 2024 is expected to witness an intensified focus on cybersecurity within the financial industry”, predicts Nigel.

According to him, Fintech companies are gearing up to make substantial investments in robust security measures, focusing notably on advanced biometric authentication methods such as fingerprint and facial recognition. The integration of biometrics represents a significant stride in fortifying security, elevating user authentication processes, and safeguarding sensitive financial information. 

By leveraging cutting-edge biometric technologies, he says, fintech firms seek to enhance consumer trust and proactively address the risks linked to identity theft and cyber-attacks.

6. Focus on global financial inclusion

A predominant theme, in the fintech projections for 2024 by Nigel Green, revolves around a heightened focus on global financial inclusion. 

Fintech, he says, is assuming a pivotal role in bridging financial gaps and extending essential services to populations that are unbanked or underbanked across the globe. This concerted effort aligns with the industry's commitment to leveraging technology to ensure that financial services are more accessible and inclusive, aiming to empower individuals who have historically been excluded from traditional banking systems.

“In 2024, initiatives focused on financial inclusion are expected to gain momentum, with fintech companies leveraging innovative solutions such as mobile banking, microfinance, and blockchain to bridge the gap. By expanding access to financial services, particularly in developing regions, fintech is poised to contribute to poverty reduction and economic empowerment on a global scale”, he says.

The deVere CEO concludes: 

“The convergence of these trends is not only reshaping the way we conduct financial transactions, but also redefining the very nature of the global financial ecosystem.”