GNAI Visual Synopsis: An illustration depicting the integration of AI in financial services, with interconnected digital networks, fintech logos, and AI technology representing the transformative changes in the industry.
One-Sentence Summary
Fintech industry expects transformative changes in 2024, driven by AI integration, expansion of Embedded Finance (BaaS), regulatory scrutiny, and preparations for the Payment Services Directive 3 (PSD3). Read The Full Article
Key Points
- 1. AI Integration: Fintech companies are set to integrate generative AI into the financial services sector in 2024, aiming to utilize AI models for complex tasks such as risk assessment, fraud detection, and customer authentication.
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- 2. Embedded Finance Expansion: Embedded finance, or banking-as-a-service (BaaS), is projected to rapidly expand in 2024 as businesses integrate financial services into their core offerings, adapting to increased regulatory scrutiny and shifting business models.
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- 3. Regulatory Changes and Preparation: Fintech firms need to prepare for the enactment of PSD3, focusing on enhanced fraud prevention measures, stricter adherence to customer authentication, and protection of account and personal information.
Key Insight
The fintech industry in 2024 will be characterized by the increased integration of AI, the expansion of BaaS, and the need for compliance with new regulatory provisions, emphasizing the sector’s adaptability and preparedness amidst evolving financial landscapes.
Why This Matters
The upcoming advancements in AI integration, BaaS expansion, and regulatory changes in the fintech industry indicate a significant shift in financial services, impacting not only businesses but also consumers, emphasizing the need for awareness of these developments.
Notable Quote
Marius Galdikas, CEO at ConnectPay, states, “To prepare for the changes PSD3 will bring, it will be necessary for fintech companies to thoroughly review and adjust their processes and compliance protocols.”.
