Fintech’s wild ride: who will rule the next phase?

TLDR: The fintech sector has experienced significant upheaval, with job losses, bankruptcies and reduced funding. Some have suggested that the fintech revolution has come to an end, but 2024 is seen as a pivotal year for the industry. Fintech has transformed the way people handle money and how financial firms interact with customers. The rise of online banking and stock trading in the late 1990s, combined with the ubiquity of smartphones, created the perfect conditions for fintech to flourish. Fintech companies were able to meet unsatisfied consumer demand and cater to vast untapped markets. Private investors poured billions of dollars into the sector, facilitating the digitization of various financial services. Startups created fintechs of all kinds, ranging from neobanks, insurtech firms and lenders to buy now, pay later providers. Established financial institutions were also forced to take note of the changes and some entered the space through acquisitions. The COVID-19 pandemic further accelerated the growth of fintech due to the increased demand for contactless payments and stimulus funds handled by fintech firms. However, the market became saturated, regulators imposed stricter rules and growth rates slowed. By 2024, it is predicted that a few resilient players will rise to dominate the fintech industry.