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Taking a step back from trends for next year, let’s consider the pivotal headlines & news from the financial technology (FinTech) sector in 2024.

From significant developments, strategic investments, regulatory advancements, and tech innovations, there was an assortment of impactful events in the last 12 months (with a few in December).

Here’s an in-depth analysis of noteworthy 2024 FinTech News — shaping the industry landscape and all its players.

Nubank’s Expansion to SEA thru Strategic Investment in Tyme Group

Last week, Nubank, the digital bank global leader by market value, announced a $150M investment in South African challenger bank Tyme Group — leading their $250M Series D (which also included M&G Catalyst and existing shareholders).

This investment catapulted Tyme to unicorn status with a $1.5 B. Funding will be utilized plans to expand reach into Southeast Asia (SEA), especially its existing presence in the Philippines and new market of Vietnam.

Nubank is solidifying it global leadership & expansion with the investor move and the industry sees how important Africa is to global financial services, not only with remittances but also with banking.

Coinbase to Become a Brokerage Leader?

Coinbase portal on desktop

Earlier this month, Matthew Hougan (Chief Investment Officer of Bitwise Asset Management) voiced a controversial perpspective that Coinbase Global Inc. can exceed Charles Schwab Corp. in market capitalization by the end 2025 — becoming a new global leader in brokerage.

The view is based on Bitcoin’s recent rally, which doubled Coinbase’s market cap (above $76B). The counter to this prediction comes down to market stability in the crypto sector, and an increase in competitors (chipping away at market share).

Regulatory collaboration (or deregulation) in the US with the new administration would ensure the strong crypto market rally continues.

UK’s Regulatory Push for Clarity in the Crypto Sector

The UK’s Financial Conduct Authority (FCA) asked for feedback from stakeholders to improve transparency in crypto markets. The regulator seeks development of a sustainable regulatory framework that enables growth and balances risk.

Financial institutions, regulators, and consumers would benefit from a unified approach with protections for all parties. This recent request opens a consultation period that ends mid-March 2025.

Similar to taking the lead in open banking regulation, UK can become a model for crypto regulation in other countries & regions.

The Wait to Continue for Ant Group’s IPO

Ant Group (co-founded by Jack Ma) is constantly top of mind when it comes to IPO-ready companies, based on its growth and market size. This goes back to 2020, when the company announced plans for initial public offering but ran into regulatory violations and penalties.

Despite an increase in rumors recently, Ant Group remains steadfast that there are no plans of any type of listing. The payments giant is focused on addition growth of Alipay (part of super app platform), which enables merchants & users to transact in multiple markets.

FIS’s Acquisition of Demica

FIS (US banking & payments tech giant) continues to be aggressive with acquisitions this year. Its expected to make a purchase outside of the US with Demica, a London-based fintech in the supply chain finance space for $300M.

The potential acquisition (founded in 1992) built a supply chain finance platform that is cloud-based and incorporates various payment gateways across 30 countries. The move would align with FIS’s focus on beefing up supply chain finance support, diversifying its payments capabiitlies, and expanding outside of the US.

Klarna’s Introduction of Subscription Services

Klarna’s mobile app

At the start of the year, Klarna (Buy-Now-Pay-Later leader) made headlines with its announcement of a $7.99 monthly subscription plan, ‘Klarna Plus.’ The new program includes robust features and shopper benefits that enhance customer stickiness and overall engagement.

The move would provide a new revenue stream (outside of purchase transactions) and improve positioning ahead of a potential IPO.

For established fintechs, monthly subscription revenue is critical to growth and scale — especially for companies planning to go public or be acquired at a larger valuation.

AI-Driven Personalization in Financial Services

In 2024, artificial intelligence (AI) become a common part of modernizing financial services. The new push for AI this year came with enhancements from personalization. We spoke about this in our 2024 FinTech Wrapped in which we recapped trends coming through for next year.

Top consumer-facing fintechs added advanced models that break down patterns based on spending & expenses, and create customized guidance for clients. Behavior and habits are part of recommendations in budgeting, savings, and investments. The improvement in automation from AI also allows for adjustments to be made in near-time.

The Rise of Embedded Finance

Another major trend we covered in our wrapped session this month, embedded finance seemed to be everywhere as more non-financial companies integrated financial services directly into their platforms.

Retail, e-commerce, trucking, logistics, and Human Resources firms are going beyond payments to add deposit accounts, card issuance, and lending. The added products not only improve user experiences, but also add new revenue streams.

More examples to come from enterprise companies with Vertical SaaS (software-as-a-service) platforms in the next year.

The Transformative Year for FinTech

Despite the lower volume of investments and new launches, FinTech still had an impactful year across the globe.

Milestones in technology, regulation, and consumer demand fueled breakthrough growth for companies of all sizes (from startup to enterprises).

The financial institutions that best adapt to these changes, prioritize customer-centric solutions, and leverage emerging technologies will lead the charge in shaping the financial ecosystem of 2025.

As we move into the New Year, the FinTech landscape continues to offer immense opportunities for disruption and growth.

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