Fintech

The Top 5 Fintech Trends of 2024

We define fintech as the family of digital technologies that facilitate the acts of earning, storing, moving and spending money. They do so by making those activities more convenient, cheaper, faster and more secure. Below we list this year’s fintech trends with the greatest potential to create transformative change in the business of money.

5. Embedded Financial Services

2024 brings more integration of financial services like payment, lending and insurance solutions into e-commerce, mobile apps and other non-financial platforms. The trend significantly enhances user engagement and convenience.
  • Stripe: Payment processing for various online platforms and marketplaces.
  • Shopify: Payment processing and lending embedded within online retail stores and POS apps.

4. Blockchain Everywhere

Blockchain tech is being increasingly used for smart contracts, supply chain financing, and digital identity verification to enhance transparency and security. Blockchain’s long-awaited proof of value beyond cryptocurrencies is finally at hand.
  • IBM Blockchain: Uses blockchain in supply chain management (SCM), trade finance, and digital ID verification.
  • Chainlink: Decentralized Oracle network that enhances smart contract functionality across various apps.

3. Enhanced AI and Machine Learning Integration

Leverages AI and ML tech to provide personalized financial advice, fraud detection, and automated customer service. These technologies are becoming increasingly accurate and tailored.
  • Upstart: Uses AI to assess credit risk and provide more inclusive loan approvals.
  • Kabbage: (now American Express Business Blueprint): Leverages ML to offer automated lending solutions for SMB.

2. Decentralized Finance (DeFi)

DeFi platforms bring together lending, borrowing, and trading services from multiple independent sources. The result for consumers is less reliance on one-stop-shop traditional banks, more choice and competition, and a single user-friendly interface.
  • Aave: Decentralized lending and borrowing services.
  • Uniswap: A decentralized exchange (DEX) that facilitates token swaps without intermediaries.

1. Central Bank Digital Currencies (CBDCs)

We rank CBDCs are the single most transformative fintech innovation for its global reach and deep societal impact. Central banks are piloting and launching digital currencies to enhance payment efficiency and avoid cryptocurrency’s notorious volatility. While re-making national and global financial systems, CBDCs also present unprecedented risks of government control over its citizens like that imposed by the Chinese Communist Party.
  • China's Digital Yuan (e-CNY): The People's Bank of China is currently piloting a digital currency.
  • JPMorgan's Onyx: A collaboration among central banks to develop and test CBDCs and related payment systems.
Kuhn Capital team members provided strategic advisory services to Blockfills, a crypto currency trading platform
A Kuhn Capital team member provided strategic advisory services to Swedish automated invoice management firm Qvalia
CES retained a Kuhn Capital team member to initiate its acquisition of MedE America, a health transaction processor
CES retained a Kuhn Capital team member to initiate its acquisition of Wellmark, a health transaction processor
CES retained a Kuhn Capital team member to initiate its acquisition of Medical Processing Center, a health transaction processor
CES retained a Kuhn Capital team member to initiate its acquisition of General ComPut, a health transaction processor