As the curtains draw on 2023, Australian Fintech companies look to the future to see which opportunities and innovations will emerge to transform the finance sector. From cutting-edge automation technology to a greater focus on data, let’s explore four trends that will shape the narrative of the Fintech landscape in 2024. 

Fintech trends for 2024: What you need to know 

#1: Data as a key focus 
Larger businesses are under pressure to provide detailed financial insights to boards and executive teams. However, they seldom have the time to work across numerous tools and spreadsheets to collate this information manually. Moreover, smaller businesses don’t even have the time or knowledge to create financial dashboards in-house, reducing their ability to provide the required analytics to make informed decisions.  

In 2024, we will likely see a greater focus on Fintechs providing B2B customers with more streamlined access to financial data and insights. These offerings may provide information that makes it easier to understand risk and performance when onboarding customers or the ability to view payment behaviours and trends quickly.  

When paired with AI, Fintech data will become even more beneficial to businesses. The data should provide more predictive insights, especially concerning the future creditworthiness of trading partners. Companies can proactively manage financial risks and conduct comprehensive customer due diligence using these insights. 
 

#2: Verticalisation 

As Fintech businesses grow, they will naturally look for new avenues to expand into and explore. Traditionally, businesses in the financial services industry took a one-size-fits-all approach to their products. This methodology has changed significantly with the rapid development of technology and digitisation.  

In 2024, verticalisation (leveraging existing resources and efficiencies to enter new markets) is the logical next step for Fintechs. Our understanding of consumer profiles allows for more efficient and targeted distribution channels. Fintechs will seek opportunities to tailor their financial products and services to specific verticals to meet customer’s unique needs.  

Verticalisation in the Fintech industry will likely occur on a case-by-case basis, involving specific considerations for industries, product penetration, customer segments and income levels. For example, using customer data, a Fintech may target new insurance and wealth-building products to high-net-worth individuals versus developing aspirational products for modest-income earners.  

#3: AI – maturing of use and awareness of risk 

In 2023, one of the hottest topics of discussion for businesses was how to successfully incorporate AI into their workflows. A recent report into AI by WordPress found that ChatGPT was the most popular tool of 2023, used by 39% of businesses surveyed. Looking into 2024, the AI Report found that almost three in four companies, regardless of size, plan to up their use of AI technology over the next 12 months.  

Robotic process automation (RPA) will also be a point of focus as businesses bring more processes online. 

While AI creates efficiencies, it also presents a range of risks – especially for Fintech businesses. Concerns linger regarding data security and privacy, as AI will be a target for cyber attacks as it becomes more integral to Fintech operations. Additionally, there are discussions that current voluntary ethical principles around AI in Australia do not go far enough as a regulatory framework. Further, there are suggestions that regulations and safeguards aren’t maintaining pace with the rising usage of AI technologies within the finance sector.  

In 2024, we will likely see a maturing in how companies use and embed AI into their products and internal tools. Hopefully, we will also see improvements in how businesses protect themselves from the risks AI exposes them to.  

#4: Advancements in quantum computing 

Australians have become even more aware of the risk of cyber crimes. In 2024, we expect attackers to become more sophisticated in response. Thankfully, the coming year may also see advancements in the introduction of quantum computing to help combat criminal activities and minimise financial risk.  

Companies can implement quantum algorithms to discover abnormalities and detect fraud in massive volumes of financial data in real-time. Fintech’s globally will increasingly leverage the power of quantum computing to make financial transactions hacker-resistant and improve risk management models. Although still in its infancy, quantum computing has the potential to disrupt the financial industry by tackling complex problems in fraud detection, risk management, and portfolio optimisation.  

Some applications of quantum computing in the Fintech space include: 

• Financial modelling and risk assessment: Quantum computing will be used to develop more sophisticated financial models and conduct complex risk assessments, leading to better investment decisions. 
  
  
• Fraud detection: Quantum algorithms will be used to detect fraudulent activity with greater accuracy and speed. 

While mainstream adoption is still several years away, 2024 will see increased research and pilot projects exploring the potential of quantum computing in Australian Fintech. 

Get in touch 

From the automation of your accounts receivable function to high-level, data-driven analysis on your Aged Trial Balance, CreditorWatch can help your Fintech business be a trendsetter in 2024.  

Get in touch with our friendly team today.