10 fintech trends for 2024 that define the industry's future | Plaid (2024)

FAQs

What are the trends for fintech in 2024? ›

The fintech outlook for 2024 is characterized by the development of advanced technologies, strict security requirements, and the emergence of new regulatory forms in the fintech industry. New and existing fintech companies need to stay up to date with the latest innovations and market trends.

The trend towards ownership of virtual real estate and digital assets is only likely to continue as online spaces become more immersive, accessible and integrated into our lives. By 2035, entire virtual economies may have emerged, complete with currencies, financial systems and regulatory frameworks.

According to Fortune Business Insights, the global Fintech market is worth around $340.10 billion in 2025 and is poised for immense growth to be worth USD 1,152.06 billion by 2032. Financial institutions are all set to adopt different Fintech trends to combat users' changing requirements.

Fintech Market Update | Q1 2024

Market valuations have stabilised, with Fintech stocks trading at ~8.0x EV/LTM Revenue. M&A volumes continue to remain depressed (down 23% over the last 12 months), but signs of recovery are visible, with deal value up 3.0x YoY in Q1 2024 and growing positivity for H2 2024.

The top technology trends in 2024 combine AR/VR technologies. These are at the forefront of immersive technology, offering groundbreaking experiences in various domains. AR overlays digital information in the real world, enhancing everyday activities like gaming, education, and retail.

The future of fintech will likely include significant expansion in the next few years. As consumer demand for convenient digital financial apps rises and traditional financial institutions increasingly partner with or adopt fintech offerings, the line between fintech startups and established players will blur quickly.

In 2050, the payments ecosystem (acquirers, PSPs, facilitators, and aggregators) will revolve around creating integrated capabilities within an ecosystem of partners to truly optimise the customer experience and deliver a seamless, personalised payments journey from awareness to purchase and long-term retention.

FinTech Market Analysis

The global fintech market was valued at USD 294.74 billion in 2023 and is projected to be worth USD 340.10 billion in 2024 and reach USD 1,152.06 billion by 2032, exhibiting a CAGR of 16.5% during the forecast period (2024-2032).

The Future of Fintech with AI

By 2028, AI in financial services is poised to hit a market value of $49 billion, showcasing its crucial role in fostering growth and innovation within the sector.

Generative AI (GenAI) is a top focus in banking, with leaders planning to allocate an average of 6.5% of the 2024 functional budget to GenAI. Banking CIOs are driving transformation within the industry through the use of GenAI.

What is the fintech capital of the US? ›

San Francisco, United States

San Francisco continues to stand at the top of Fintech innovation, maintaining its lead as the global startup city for fintech startups.

Mumbai (Maharashtra) [India], July 9: Raj N., Founder and Executive Chairman, Zaggle Prepaid Ocean Services Limited has been honoured with the prestigious "Fintech Leader of the Year" award at the BW Festival of Fintech Conclave & Awards 2024.

FinTech Market Analysis

The global fintech market was valued at USD 294.74 billion in 2023 and is projected to be worth USD 340.10 billion in 2024 and reach USD 1,152.06 billion by 2032, exhibiting a CAGR of 16.5% during the forecast period (2024-2032).

While this was a six-quarter high, it was still far below the quarterly average of 2021. Yet there's still plenty of opportunity in fintech for those who care to look. BNPL 2.0 is going strong, virtual bank cards and digital mortgages are growing in demand, and both regtech and AI adoption in fintech are on the rise.