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Weekly Analysis And Opinion Highlights – 22 January 2024

Stay informed, stay ahead as we look into the future of 2024. See the latest insights on accessibility, the chaotic communications field, digital banking and more today.

From M-Pesa onwards, African fintech is solving for accessibility, but innovating on top of the rails (Disrupt Africa)

The African fintech sector has seen substantial growth, addressing issues of financial exclusion on the continent. Last year, 678 active fintech ventures were tracked, with a 18% growth from the previous year. The sector has received significant funding, with 540 startups raising $3.6 billion, three times more than any other sector in Africa. The lack of access to formal financial services, including banking and insurance, has been a major challenge. Fintech solutions, ranging from mobile money to blockchain, are increasingly being developed to address these challenges, with a focus on financial inclusion, access, and infrastructure. The industry has seen notable successes like M-Pesa but continues to evolve to meet diverse needs and expand into areas beyond payments. Read more

What is fintech? (McKinsey & Company)

In this insights article, McKinsey & Company explore the current state and future trends of fintech globally. Fintech, driven by technology and cloud services, has transformed financial services, impacting how users handle money. Find out more about the evolution of banking digitization, three trends shaping fintech growth, seven technologies shaping the future, a shift towards sustainable growth, the rise of open financial data, actions for incumbents to prevent disruption, challenges and opportunities in Africa, Europe, and the Middle East, North Africa, and Pakistan. The explainer explores the dynamic nature of fintech, with a focus on innovation, adaptation, and collaboration. Read more

How fintech is expanding the borders of financial inclusion (Fintech Futures)

Fintech Futures share the need for fintechs to do more in addressing the financial needs of disabled or vulnerable populations. While many fintech firms have successfully addressed issues in the financial services industry, there is a lack of focus on making financial services more accessible for individuals with disabilities. Some startups are emerging to fill this gap, such as Sibstar, which offers an app and debit card for people with dementia. Larger firms like Mastercard are also taking initiatives, such as launching the Touch Card designed for the visually impaired. The article emphasizes the opportunity for fintechs to create impactful solutions for underserved audiences and calls for more efforts in this direction. Read more

Challenges the fintech industry faces with generative AI (TechTarget)

Generative AI is making strides in the fintech industry, offering opportunities in fraud prevention and customer support. However, concerns about regulatory frameworks are often considered the culprits behind its slow-paced adoption. Ronen Assia, managing partner at Team8, discusses challenges and predicts specific regulations for industries like finance. Fintech goals for 2024 include replacing traditional roles with AI, especially in areas like financial advice and consulting. Despite advancements, human oversight remains crucial due to concerns about accuracy and data hygiene in financial services. Looking ahead, it is expected that generative AI will become a standard tool in fintech, leading to increased funding and innovation, particularly with stabilized interest rates. Read more

5 predictions for fintech in 2024 (FinExtra)

In 2024, the fintech industry is poised for significant transformations. Fintechs will shift their focus from user growth to profitability, prioritizing customer lifetime value and emphasizing unit economics. A notable trend is the development of vertical solutions, where fintech companies will create specialized suites tailored for specific audience segments. The concept of “self-driving finance” will emerge, guided by AI to offer personalized financial experiences, making recommendations based on individual circumstances. Standalone budgeting apps are predicted to fade, with personalized financial management becoming integrated into various fintech services. Finally, AI-driven customer service is expected to streamline issue resolution, reduce costs, and contribute to the sustainability and growth of digital-first finance. Read more

Gamification In Banking And Fintech: 5 Learnings From iGaming (Forbes)

Gamification is gaining traction in the banking and fintech sectors, enhancing customer experience and engagement. While some banks and fintechs have incorporated gamification through lotteries, prize draws, and trophies, there’s potential for broader applications. The iGaming industry offers valuable insights into motivational engineering, utilizing challenges, progress tracking, and rewards to enhance user engagement. Fintechs can learn from iGaming’s success in capturing screen time by offering dynamic and engaging experiences. Incorporating features like achievements, rewards, and personalization through AI can make financial management more interactive. With consumer choice increasing, a well-executed gamification strategy can differentiate brands and boost retention and revenues, encouraging banks and fintechs to adopt a more engaging approach akin to platforms like Netflix. Read more

Fintech isn’t doomed, it just needs more time (TechCrunch)

TechCrunch’s newest Equity podcast discusses various topics, including the recent decline in global stock markets, the anticipation of TSMC’s Q4 2023 results, and the unexpected lack of significant price movement for bitcoin despite the introduction of spot ETF products. The episode also covers Uber’s decision to discontinue its alcohol delivery service, Drizly, and highlights recent funding rounds for Spot Technologies and fintech startup Kuda. Additionally, it touches on Apple’s smartphone dominance and Microsoft’s focus on AI. Despite challenges, the speakers conclude fintech isn’t doomed but may need more time for further development. Read more

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