[BNPL for Business ]Report on “2024 Trends in the Fintech Sector

The “2024 Trends in the Fintech Sector” report provides a detailed overview of the forecasts for the fintech industry in the coming year. A resurgence in activities is expected, particularly for B2B fintechs involved in modernizing financial services. Fintech funding is projected to remain stable or experience a slight decline in 2024, with potential for a rebound in the second half of the year. Banking as a Service (BaaS) platforms and fintech partner banks are expected to intensify their investments in risk management and compliance, with increasing focus on consolidation in the BaaS sector. Additionally, an expansion of central bank digital currencies (CBDCs) and an acceleration of globalization in payments and fintech are anticipated. The regtech sector is expected to grow, with increased investor interest and a rise in mergers and acquisitions.

Main Trends Expected in the Fintech Sector for 2024

–Fintech Funding: Fintech funding is expected to remain relatively stable or experience a slight decline, with potential for a rebound in the second half of the year. A return of consumer fintechs to the venture capital market is also anticipated, with a focus on internal rounds led by existing investors.
– Banking as a Service (BaaS): The BaaS sector is expected to face increasing challenges, with greater regulatory pressure and heightened focus on risk management and compliance.
– Regtech: The regtech sector is projected to have a significant moment in 2024, with increased investments and mergers and acquisitions.
– Globalization: Globalization will continue to drive expansion and innovation in the fintech sector, with a focus on international expansion and partnerships between fintechs and traditional financial institutions.
– Central Bank Digital Currencies (CBDCs): Interest in CBDCs is expected to strengthen in 2024, with increased development of products and services specific to CBDCs by major players in the payments sector.

Evolution of Fintech Funding in 2024

Fintech funding is expected to remain relatively stable or see a modest decline, with potential for a rebound in the second half of the year, barring further negative macroeconomic changes. Venture capitalists have reduced their investments in fintechs due to factors such as rising interest rates, declining growth in technology spending, and increasing regulatory pressures. However, consumer fintechs are expected to return to the venture capital market after improving their balance sheets and further expanding their distribution. An increase in mergers and acquisitions is also anticipated, with a focus on regtech and BaaS.

Challenges and Opportunities for Payment Service Providers in 2024

Challenges:
1. Globalization of Payments: Supporting global payment needs and offering local payment services and dynamic currency conversion.
2. Modernization of Payments: Modernizing payment infrastructures to meet merchant needs, with increasing adoption of technologies like real-time payments.
3. Adoption of Emerging Technologies: Adopting technologies such as real-time payments and the standardization of ISO 20022 messages for cross-border payments.

Opportunities:

1. Growth of the B2B Sector: The B2B payments sector presents a significant opportunity, with a focus on automating payment processes.
2. Adoption of Digital Payments: The adoption of digital payments and central bank digital currencies will offer opportunities to expand service offerings.
3. Improvement of Payment Security: Implementing advanced security solutions to address fraud challenges, gaining customer trust.In summary, payment service providers will face challenges related to globalization, modernization, and the adoption of emerging technologies, but will also have growth opportunities in the B2B sector, in the adoption of digital payments, and in improving payment security.

(Fonte: S&P Global Market Intelligence)

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