🛋️ Fintech Megatrends in 2024 & the State of Global Fintech

I'm writing this week's edition of The Crunch from my hotel in Japan where I've spent the week at this year's Japan Fintech Festival which I'm absolutely loving.

Dozens of great minds like Mr. Fintech himself, Sopnendu Mohanty, and visionary founders like Vijay Shekhar Sharma, hundreds of incredible ideas, massive goals from expeerts like Ravi Menon on shaping finance's future, and a community obsessed with fintech just like me.

I've had the chance to speak with the largest names in fintech, chat about Japan's ambitious fintech goals which will require catalyzing the ecosystem, and discuss harmonizing global financial infrastructure with experts from Ant, Equinix, SBI and more.

But let’s cut to the chase and dive into this year’s largest fintech trends!

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🛋️ Fintech Megatrends in 2024 & the State of Global Fintech

2024 is gearing up to be a huge year for fintech, bouncing back from 2023’s rollercoaster with less cash flowing and more layoffs. 

We're witnessing a significant move towards sustainable finance, with the industry collectively striving to achieve net-zero emissions, exploring carbon markets, and emphasizing the accuracy of ESG data.

These changes can be seen in countries all around the world and they’re all joining forces to meet their massive goals.

If the fintech industry can nail this and maintain the innovation-regulation balance, 2024 might just be the year we see a major shift towards making finance more inclusive and sustainable. 

Background

• Fintech industry faced challenges in 2023 with reduced investments, lower valuations, and layoffs amid macroeconomic uncertainty.
• However, industry fundamentals remain strong due to the large addressable financial services market and ability to address persistent pain points.
• Key trends in 2023 included the crypto market turnaround, rise of generative AI adoption, and emergence of quantum computing capabilities.

Today

• Sustainable finance is a major trend, driven by the path to net zero emissions, growth of voluntary carbon markets, and increased scrutiny on ESG data accuracy.
• Generative AI and robotic process automation (RPA) are being widely adopted, with opportunities in verticals like RegTech and CFO tech.
• The B2B fintech stack is evolving, with innovations in areas like indexing solutions for ETFs and digital asset custody infrastructure.

What's Next

• Regulatory frameworks are emerging to govern the use of AI and quantum computing in financial services.
• Japan is increasing its focus on innovation, with government initiatives to boost the fintech ecosystem and invest in areas like quantum computing.
• Key areas to watch include developments in digital assets, continued AI/generative AI adoption, and the impact of quantum computing on financial systems.

What emerging trends in the B2B fintech stack are you watching in 2024?

🟠 PayPal introduces Complete Payments, an all-in-one solution for SMEs, enhancing online payment options including Apple Pay, Google Pay, and BNPL.

🟠 Qatar Central Bank to launch Fawran, an instant payment service allowing 24/7 funds transfer using mobile numbers instead of IBANs.

🟠 TerraPay partners with Alfardan Exchange to enhance cross-border payments, leveraging digital remittance solutions for improved financial connectivity and inclusivity.

🟠 FSS launches BLAZE in the Middle East, a payment platform capable of handling over 5000 transactions per second.

🟠 Allianz Trade launches Allianz Trade Pay, a new payment solution for B2B e-commerce, offering credit insurance and instant financing for merchants, banks, and marketplaces.

🟠 The Bank of Thailand plans to push their open banking initiative starting April.

🟠 Nexi partners with Mastercard to enhance European open banking payments, offering a more secure, seamless online shopping experience.

🟠 ChargeAfter launches an embedded lending platform for banks, enabling seamless integration of lending products at merchants' points of sale.

🟠 Xsolla launches Xsolla Wallet, offering developers and creators in the video game industry instant access to embedded finance solutions and streamlined earnings management.

🟠 Animoca Brands partners with KACST to launch a Web3 Hub in Riyadh, Saudi Arabia.

🟠 Stc Bahrain collaborates with Lionscraft to develop Web3 infrastructure in Bahrain and the Middle East, signing the partnership in the Sandbox Metaverse and deploying it as an NFT.

🟠 Sony Bank announces a green finance security token and a Web3 NFT app, Sony Bank CONNECT.

🟠 RemotePass raises $5.5 million in Series A funding, led by 212VC, to expand its HR & Fintech platform that manages and pays remote workers globally.

🟠 Climate FinTech firms in Europe lead in attracting $2.3 billion in investments.

🟠 Rabeh Financial secures $800,000 in a Seed funding round, with plans to expand its innovative AI and data analysis-driven investment platform within and outside Saudi Arabia.

🟠 Carputty raises $80m to innovate auto financing, planning expansion and partnerships, notably entering the California market.

Generative AI Research – Fintech Adoption of GenAI: This report dives into what the Fintech Tuesdays community thinks about using GenAI in fintech. Mainly, it looks into how GenAI could really shake things up in areas like customer service and fraud detection. It also points out the big hurdles, like needing to learn more about GenAI, worrying about data privacy, dealing with AI ethics, and navigating rules and regulations. Read the full report here.

Join us for Episode 3 of Couchonomics with Arjun as we explore the UAE's entrepreneurship ecosystem with Professor Ramesh Jagannathan, Managing Director of StartAD. Learn about StartAD's innovative programs, the challenges of entrepreneurship, and the role of women in business. Tap here to listen to the full episode.

Now, a quick break for your wellness. Chief Wellness Officer at FAB Diego Carrete is on a mission to help executives get fit, increase their energy, and live longer.

This is what happens if you sleep <6 hours/night for 3 days in a row:

You will misadjust your entire hormonal system

Your risk of obesity will increase by 73%

You will wreck your immune system

Your risk of accident will increase by 50%

Good sleep is all about activating certain hormones, and deactivating others, activating melatonin, deactivating cortisol, adrenaline and so on.

The 3-1 evening routine to fix it:

• 3 hours before: dim the lights of your house
• 2 hours before: have your last meal (your body needs to rest, not digest)
• 1 hour before: electronic device curfew ((blue-spectrum light from electronic devices will disrupt sleep)

Too difficult? I got you, start here:

• 30 minutes before sleep: Shut off all electronic devices 
• 20 minutes before: Lay out clothes for the morning, brush teeth, wash face.
• 10 minutes before: Calm your mind and body down with some deep breathing 
• Time to sleep: Turn your bedroom into a cave – minimize noise and light.

Helpful? See you next week were we will discuss the best 9 natural anti-depressants

This week we have news from Consumer Financial Protection Bureau, Block, Cash App, Change Healthcare, Experian, Apple, Mastercard, Loop Saudi, PayCargo, Rippey AI, Visa, European Union, MTN, NHS, and more.

Subscribe for weekly updates on all things fintech here. Thank you to our sponsors ToYou, Mastercard, M2P Fintech, Thunes, geidea, and Adyen for making today's edition possible.

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