Top FinTech Trends to Watch out for in 2024
Today, whether we have to pay at a small local outlet or when on a shopping spree at a mall, we all rely heavily on FinTech to complete our transactions. So, it comes as no surprise that the Indian FinTech industry’s market size stands at approximately 111.14 billion in 2024 and is expected to grow at a CAGR of 30.55% from 2024 to 2029. Moreover, FinTech is now being used not only by individual customers but also businesses, lenders, product manufacturers, distributors, banks, NBFCs, etc. for their business processes. So, here are some top FinTech trends to watch out for in 2024:
Disruptive growth in application programming interface (API)
Application programming interface (API) is essentially a command or protocol that allows different software platforms to connect and integrate. In terms of FinTech, the collaboration between private companies and banks through software applications and interfaces has been on the rise over the past few years, owing to the sheer seamlessness of the process. This trend of open collaborations between these entities on FinTech applications is expected to grow further as 2024 progresses. Digital banking apps now offer highly personalized services to lenders and banks as well as borrowers or buyers and facilitate real-time connection between different stakeholders.
Emergence of alternatives to credit scores
Today, loans are rejected for several thousands of individuals only because their credit scores are not up to the mark. However, alternatives to credit scores However, several alternative criteria to loan approvals have emerged recently, which has made the process much more streamlined and convenient for borrowers. Pay stubs, rent and utility bills, text or voice information procured from customer service calls, and survey and interview data are some ways in which lenders have begun evaluating borrowers’ eligibility for loan applications besides checking their credit scores. And these methods are predicted to become further prevalent as the year rolls by.
More advanced security and privacy features on FinTech apps
Since FinTech applications handle users’ personal information, they need to ensure complete protection from fraudulent activities and cyber crime. Moreover, these applications also handle confidential information of banks and private organizations, so they must ensure that such data remains accessible only to the concerned individuals and entities. It is expected that FinTech apps will include highly advanced security and privacy features, including facial and voice recognition and the use of biometrics
Increase in embedded finance services
Embedded finance is where ventures that are primarily non-financial offer financial services. One of the prime examples of embedded finance is WhatsApp offering its individual payment gateway. Similarly, a retail store may offer its own branded credit or debit card, which also comes under embedded finance. Such embedded finance initiatives are slated to increase in 2024.
FinTech has grown exponentially for several reasons, including facilitation of a cashless economy and the sheer convenience of payment. Businesses have also majorly adopted FinTech in their financial processes, because these platforms allow for timely payments and automated invoice processing, dynamic discounting options, seamless real-time connection with other stakeholders, etc. We at Zuron contribute to this FinTech revolution by connecting banks, NBFC, other financial institutions, independent lenders, manufacturers, private organizations, product distributors, and other such entities in real time and providing a consolidated, user-friendly platform for all their FinTech requirements. We would be glad to know more about your finance payables, receivables, and other financial needs and help you make your financial processes more streamlined through our application. Click here to know more!
