In the world of fintech, 2024 is shaping up to be a year of significant growth and innovation, with three key trends leading the way. According to a report by American VC firm Plug and Play, sustainable finance, generative artificial intelligence (gen AI), and tokenization are set to dominate the fintech landscape this year.
Sustainable finance, in particular, is gaining traction as the world grapples with the urgent need to reduce greenhouse gas emissions. The Net-Zero Banking Alliance, comprising 142 banks committed to reaching net-zero emissions by 2050, is a significant step in the right direction. However, challenges remain, with some major banks found to support fossil fuel companies. This presents opportunities for sustainable finance startups to tap into renewable energy, carbon capture technologies, and more.
Gen AI, a type of AI technology capable of producing various forms of content, is also on the rise. Despite slow enterprise adoption in 2023, fintech startups have the opportunity to help businesses integrate gen AI more effectively. Additionally, the demand for robotic process automation (RPA) is expected to increase as banks seek to cut costs and improve efficiency.
Tokenization is another trend to watch, with asset tokenization expected to enhance liquidity and open up new investment opportunities. Alternative assets, such as private equity funds and real estate, are also becoming more accessible to a broader audience through fintech platforms.
Overall, 2024 promises to be an exciting year for fintech, with these trends driving innovation and growth in the industry. Stay tuned for more updates on the evolving fintech landscape.