FinTech in 2024: Digital assets, data-driven FinOps, and the rise of BaaS and HealthTech

As the fintech sector gears up for 2024, industry experts foresee several key trends that could reshape the landscape of financial technology. Digital assets, data-driven approaches, regulatory adjustments, evolving business models, and a shift towards enhanced security measures are expected to mark the sector's trajectory in the coming year.

Digital assets taking centrestage

Fintech leaders are placing a spotlight on digital assets as a pivotal element in the industry's evolution. Experts predict a surge in relevant work related to digital assets, enabling diverse use cases while maintaining privacy, such as age verification without disclosing sensitive information.

Embracing a data-driven FinOps approach

A more data-driven approach is anticipated in the world of FinOps as companies strive to optimize IT budgets for impact and efficiency. This shift involves enhanced data collection, organization, and analysis, leveraging modern observability tooling. Early adopters embracing a data-driven mindset are expected to gain a competitive edge by closely correlating cost and profit centres, enabling well-informed decision-making and efficient resource allocation.

Preparing for PSD3 regulations

Financial services companies are gearing up for the enactment of Payment Services Directive 3 (PSD3) in the European Union, set to take effect by the end of 2024. To navigate the changes brought by PSD3, fintech companies are expected to undertake thorough reviews and adjustments to processes and compliance protocols. The industry is poised for heightened efforts to adapt to the evolving regulatory landscape, ensuring enhanced security for payment processes and customer data.

Rise of Banking-as-a-Service (BaaS) model

A shift towards a Banking-as-a-Service (BaaS) model is anticipated, driven by the need for fintech companies to embed compliance into their offerings. BaaS providers are likely to offer embedded compliance services, encompassing aspects like onboarding, authentication, and monitoring. This approach aims to streamline compliance maintenance complexity, allowing fintechs to concentrate on their core business operations.

Convergence of FinTech and HealthTech

Industry experts foresee a convergence of FinTech and HealthTech, resulting in more robust patient experiences and tailored treatment plans. This integration aims to ensure accessible and personalised healthcare services. Technology is expected to empower patients with increased visibility into shared personal data, facilitating a 'Zillow.com for trials' approach to navigate available clinical trials. Initiatives might emerge to enable patients to monetize their health data and collaborate with health systems, fostering trust between patients and healthcare organizations.

Passwordless authentication in focus

A notable shift away from traditional passwords towards passwordless authentication is anticipated in 2024. Fintech and banking sectors are expected to embrace passkey technology, offering a secure and convenient authentication experience. Passkeys, built on the proven security of public key cryptography, are set to gain traction, providing users with a simple and familiar sign-in experience.