The FinTech Year in Stories: February

By Louis Thompsett

December 23, 2024

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We look at the articles that made the news in fintech in 2024. Today, it is February…

EPAM: 96% of Consumers Happy With AI in Banking

EPAM Continuum, the integrated business, technology and experience consulting practice of EPAM Systems, has released its 2024 Consumer Banking Report, revealing that 96% of consumers are happy with banks adopting and integrating AI to better serve end users.

To complete its 2024 report, EPAM Continuum surveyed adults from key banking geographies including Australia, Canada, Germany, Hong Kong, Italy, Saudi Arabia, Singapore, the UK and the US, finding that satisfaction with banks remained strong globally amid rising consumer expectations for increased digital capabilities and personalisation.

Indeed, the results of EPAM’s report not only underscore consumer expectations for enhanced digital capabilities but also highlight the importance of fintech disruptors that continue to move the needle for more personalised and convenient digital experiences.

EPAM: Consumers want the best of both worlds

Consumers surveyed expressed satisfaction with their primary bank, citing good customer service, reputation and local presence as positive attributes.

However, with consumer desire for AI and digital banking services high, for those banking organisations behind the curve of innovation, the threat from fintechs (primarily neobanks) is firm.

The staying power for more traditional incumbents is the in-person banking service they offer, with most consumers seeking the best of both worlds – a seamless digital experience and easy access to in-person banking services.

For those banks closing branches and receding from towns and cities, it would seem their transformation plans must be robust enough to compete with digital banking leaders – and they should keep an adequate amount of branches open – if they are to maximise customer retention and acquisition rates.

KPMG: Proptech, ESG investment up amid fintech funding dip

One of the world’s ‘big four’ consulting firms, KPMG, has released its Pulse of Fintech report covering H2 2023, in which it details investment trends in what was a challenging year (2023) for many fintech startups seeking to generate capital.

Total fintech investment of US$113.7bn and total funding deal counts of 4,547 represented the lowest year-total investment rates in this burgeoning industry since 2017.

The year-on-year decline in fintech investment for FY 2023 happened across all key regions of the investment landscape – with ASPAC experiencing the largest drop – from US$51.3bn in 2022 to just US$10.8bn in 2023.

In the same period, EMEA saw investment drop from US$49.6bn to US$24.5bn. It was in the Americas where there was the most resistance, with the investment drop just (comparatively) down from US$95.4bn in 2022 to US$78.3bn in 2023.

Proptech, ESG: Shining lights in the fintech investment landscape

And yet, amid this downturn in investment, proptech investment reached a record high of US$13.4bn in 2023, while ESG-focused fintech investment rose from US$1.2bn to US$2.3bn year-over-year.

This is significant in that it highlights the reach of fintech capabilities – an investment flurry in proptech initiatives reflects a growing understanding of the financial efficiencies and conveniences new tech in the real estate industry can give rise to.

And, a focus on ESG-led technology in fintech reaffirms the growing refocus of financial services providers to hit sustainability goals. Indeed, large banks like HSBC have recently ramped up their social commitments by restating their pledge to hit net zero by 2050.