The Fintech Revolution 2024: The Rise Of AI & Blockchain Technology Trends

In today’s rapidly paced financial landscape, individuals and businesses are in a hurry to accumulate wealth, but pays less attention towards their effective management. Amidst these crises, the role of technology in finance has been more than just an option now; it has now turned into an effective way to save time and money. The development in Blockchain Technology, AI-powered Banking, Digital Wallets, and other key technological trends, have successfully reshaped banking and revolutionsed fintech worldwide.

Technological trends in finance, primarily the use of AI and ML, are solely responsible for how businesses and individuals manage money. From managing Cryptocurrencies to implementing Sustainable Banking, the article covers the top emerging financial technological trends, enabling it to redefine how fintech can empower consumers globally.

The rise of Fintech 

• The rise in technological advancements enhancing financial services for individuals and businesses worldwide are concisely referred to as Fintech, or Financial Technology.

• For example, the growth of digital payment platforms like Alipay, Paypal, Apple Pay, Google Pay and other net banking services, have eased money transfers by enabling it on our fingertips through smartphones. It has significantly reduced the need of visiting a bank. Let us look at their users and some of the more insights from across the globe. (Source)

• Mobile payment transaction volume surged to a value of $2.3 trillion USD in 2023. The Chinese fintech mobile payment services have the most registered users with Alipay and WeChat pay, combining 86% approximately of the total users in 2023. (Source)

(Image Source: Business of Apps)

• Denmark ranked first followed by China, Sweden and India in terms of adoption of mobile payment in 2023. In India, Phonepe has the largest market share of 48.9% followed by Google Pay of 37.7% in 2024. (Source)

(Image Source: Business of Apps)

• The current global fintech industry is valued at approximately $226.76 billion USD and is projected to reach upto $917.17 billion USD at a CAGR of 16.8%. (Source)

• From an investment of $4 billion USD in 2012 to $210 billion USD in 2021, the global fintech investment multiplied exponentially. However, the investment dropped from H2 of 2022 to H1 of 2023 by 49% ($46 billion USD to $23 billion USD). (Source)

• Visa is the largest fintech company followed by Mastercard with a valuation of $555 billion USD and $428 billion USD respectively. (Source)

(Table Source: Exploding Topics)

• The largest share amongst the top 20 fintech companies originated from the United States (10), followed by China (2). India has a single fintech company in the top 20 by market value as per a 2024 report, Polygon. (Source)

• Zelle, the most popular and widely used mobile payments platform in the United States as shown in the figure. (Source)

(Image Source: Business of Apps)

• China leads the way when it comes to adoption of fintech banking services. Approximately 92% of the Chinese people use these solutions followed by the US at 52%. (Source)

(Table Source: Exploding Topics)

AI & ML in Finance

Artificial Intelligence (AI) and Machine Learning (ML) are those revolutionary technological advancements which have made significant contributions in the financial sector by improving decision making, increasing efficiency and reducing costs. 

• By 2030, the value of AI’s global market in finance is expected to reach $190.33 billion USD. (Source)

• The United States (33.91%) leads the list as leaders in application of AI for fintech development (2021-24), followed by India (4.97%) and UK (4.60%). (Source)

(Image Source: All About AI)

• Banking or financial sector holds a key share of 17.82% among industries in application of AI and ML. (Source)

(Image Source: All About AI)

• AI is expected to contribute between $200 billion USD to $340 billion USD in banking savings annually by 2025 globally. (Source)

• Despite its numerous applications, organisations have still not employed AI/ML into their financial operations. (Source)

(Image Source: All About AI)

• As a share of the total global AI market in finance, Applied AI is expected to grow the financial sector significantly to $59.70 billion USD, while Generative AI is expected to reach $13.57 billion USD by 2032. (Source)

It has various applications in the financial sector, let us study them one by one: 

Fraud Detection and Prevention

• AI has capabilities to examine large data sets of transactions in real time to identify fraud activities in it. On the other hand ML can detect unusual patterns in the transaction history. 

• For example, credit card frauds can be detected and prevented by analysing transaction patterns using AI and ML.

• Fintech giants such as Paypal, Visa, Mastercard (uses Decision Intelligence System) and many others use AI-powered systems to assess transactions and flag those which look abnormal.

• Approximately 91% of banks in the United States use AI to detect frauds. (Source)

Risk Management in Loan Approval

• AI and ML can use its technology to reduce credit risk by analysing factors like customer profile, historical data and market behaviour. 

• This predictive analysis helps financial institutions mitigate risk associated with credits with ease and saves them from losses. 

• It also helps them assess and analyse documents to make a good and informed decision, helping people with good credit scores to get loans faster.

• For example, JP Morgan uses ML on their Contract Intelligence (CoIN) platform to review and assess documents to minimise risks. Bank of America also uses AI for assessing market trends and reducing risk. SBI Yono App (India) and many other banking apps in India use AI to offer pre-approved loans to customers.

Enhancing Personal Finance

• AI and ML can help enhance your personal finance by suggesting them with the best financial advice by analysing customer financial behaviour and history. 

• ML can help study market trends and create investment portfolios which suit your personal finance. 

• For example, apps like Wealthfront and Mint help people manage their personal finance using AI and ML.

Cost reduction and Process Automation

• Robotic Process Automation (RPA) uses AI technology to automate daily financial tasks like data entry and account reconciliation for various financial institutions.

• For example, HSBC’s Chatbots handle thousands of customers daily, TCS BaNCS help them manage their daily tasks automatically and assist them in other financial tasks as well using AI.

• Banking sector is expected to save $1 trillion USD in saving through AI driven technologies by 2030. (Source)

(Image Source: All About AI)

Financial Forecasting 

• AI technology can help forecast market trends and investment opportunities by analysing the real time data and historical records simultaneously.

• For example, Amazon Web Services (AWS) uses AI and ML to filter out customers for future lending trends. Morgan Stanley’s AI Assistant recommends predictions about clients about recommending investments to clients by studying their personalised choice and requirements.

Cryptocurrency, Blockchain Technology and Decentralised Finance (DeFi)

• Often, terms like Blockchain Technology and Cryptocurrency are mixed with each other but they are completely different yet related to each other. 

• Cryptocurrency, as the name suggests, is the digital form of currency. Unlike the traditional way of using paper currency, it urges people to shift to digital mode of payment through digital currencies.

• Whereas Blockchain is the driving technology behind it. Both these combine together as one of the key financial technological trends today.

• Another important term used more than often in this context is Decentralised Finance (DeFi). Decentralised Finance (DeFi) is another key financial technological trend aimed at eliminating intermediaries like banks.

• Decentralised Finance (DeFi) employs to carry out financial services through Smart Contracts such as Ethereum, Solana, Cardano, and many others. (Source)

• Major fintech banks, such as Goldman Sachs and JP Morgan have started to offer cryptocurrencies funds to their clients.

Key Insights 

• Cryptocurrency market peaked in 2021 at $2.9 trillion USD and is at $2.4 trillion USD in November, 2024. (Source)

• It is estimated, in the coming years 75% of the retailers in the US have planned to accept cryptocurrencies. (Source)

• Binance is the biggest crypto exchange in the world, followed by Coinbase. (Source)

• The use of cryptocurrencies is increasing day by day, individuals, primarily under the age of 35, mostly males, across the globe are widely adopting it. (Source)

(Image Source: Investing in the Web)

• Cryptocurrency is still smaller in value than some of the other modes of investment like shares, bonds, and many others. (Source)

• There are more than 26,000 cryptocurrencies accessed throughout the globe. Amongst these, Bitcoin holds the largest share, and is also the first cryptocurrency launched in 2009, followed by Ethereum. (Source).

(Image Source: Investing in the Web)

• The current value of Bitcoin today is at $96,711.64 USD, changing every other second. (Check Bitcoin Value Here). However, the value of Bitcoin is still less than Gold. 

(Image Source: Investing in the Web)

• Decentralised Finance (DeFi) had an overall market cap of around $17 billion USD in 2023 and is expected to be doubled by 2027. (Source)

• Blockchain Technology, Cryptocurrency and Decentralised Finance (DeFi) are emerging technological trends in finance, are equipped with challenges of cyberthreats as well, but the involved potential with these emerging trends is also sky-high. It will be interesting to see in the coming years how crypto will impact us in our daily lives as a key technological trend in finance.

• However, investment in shares, bonds, and bitcoins is another way of avoiding a satisfied life. It will not allow you to think beyond it and will prohibit you from working towards achieving true fulfilment.

Sustainable Finance 

• Sustainable Finance are those financial activities which are aimed at incorporating ESG (Environmental, Social, and Governance) principles into financial services. 

• Instead of investing in industries which harms our environment, sustainable finance is a technological trend in finance that promotes investment in renewable energy generation with minimised or no carbon footprint.

• It makes use of fintech advancements, AI and blockchain technology for seamless operations. 

• Sustainable finance is classified into various bonds on the basis of transaction type, which are Green Bonds, Social Bonds, Mixed Sustainability Bonds, ESG Integrated Bonds, and others. 

(Image Source: GM Insights)

• These bonds are promoted by governments across the globe by setting up desired policies and incentives for investors to invest. The main aim of these policies is to attract investment towards eco-friendly projects and limit the overall carbon footprint.

• For example, SBI (India) has raised $250 million USD in January 2024 by issuing Green Bonds which are set to mature in December 2028. Its maturity is as per SBI’s ESG financing framework. (Source)

• Some major financial institutions contributing globally to Sustainable Finance are Blackrock, HSBC Group, Goldman Sachs, BNP Paribas, UBS, Bank of America, and Deutsche Bank AG. (Source)

• Sustainable Finance Market was at a valuation of $5.4 trillion USD in 2023 and is expected to increase at a CAGR of 22% between 2024 and 2032. (Source)

Robo Advisors and Automation in Finance

• Robo Advisor is one of key technological trends in the finance industry. These are the digital platforms which provide assistance in financial planning and investment without reduced human intervention.

• From your given inputs, robo advisors can help you calculate how to plan your investments without requiring any financial advisors.

• Robo Advisors takes help of cutting edge AI technologies to plan your financial goals. For example, robo advisors can analyse your expenses, income sources and funds to plan your income after retirement by assisting you to save a particular amount monthly.

• The success of robo advisors can be estimated from its projected growth expected from $11.52 billion USD (2024) to $45.75 billion USD (2029) at a CAGR of 31.78%. (Source)

(Image Source: Mordor Intelligence)

• Robo Advisor is a cost effective way to let an assistant manage your personal finance wisely. Unlike traditional advisors who charge  2%, Robo Advisors charge 0.25-0.5% for managing your personal finance.

• It includes services for retirement planning, funds management, tax loss harvesting, and estate management.

• The application of robo advisors is an example of use of technology in assisting finance. It is one of the major technological trends in finance. For example, Saudi Arabia’s Capital Market Authority (CMA) has authorised Waheed Capital and Haseed Investing Company to test robo-advisory services. (Source)

• Firms like TradeSmart have initiated AI driven robo advisory services in India.

• Vanguard Group, Betterment LLC, Wealthfront Corporation, Charles Schwab & Co. Inc., Future Advisor, and many others are the major key players in the robo-advisory industry.

■ Also Read: Quantum Mechanics Unraveling the mystifications of the Quantum Realm

Quantum Computing in Finance

• The field of finance is very vast and complex, and to manage it we require a more efficient system which can organise things wisely at all levels. Quantum Technology is the solution. 

• It is an advanced field of technology using quantum mechanics to solve complex problems. Unlike Traditional computers, it takes minutes to solve complex problems. Particularly in finance, it can analyse large datasets at once to identify latest trends and optimise investments with capabilities of modifying it with real-time variations.

• Quantum Technology is a vast term which primarily includes three major fields, quantum computing, quantum sensing and quantum communication.

• This technology by incorporating AI & ML has turned into a major technological trend in the finance industry particularly. 

• It has eased out tasks for major fintech players in the industry through its wide range of applications. These applications have gathered investment from across the globe as well. Recently launched google quantum computing chip ‘Willow’ is an example of it.

• The major applications of quantum computing in finance include Portfolio Optimisation, Risk Analysis, Fraud Detection, Cryptography and Security, and Supply Chain Finance.

• Major tech giants such as, Allianz, HSBC, Morgan Stanley, Citibank, Visa, Paypal, Mastercard, Goldman Sachs, Deloitte, JPMorgan Chase, IBM, Barclays, Swiss Post, Maersk, and many others have developed quantum models for enhancing financial services of their organisation. Some have partnered with quantum researchers to execute efficient work models.

• Startups are heavily investing in this latest trend of quantum technology. Amongst these, as of December 2022, quantum computing has been able to gather a funding of $5.4 billion USD in 2022, way more than quantum sensing and quantum communication. (Source)

(Image Source: Electro IQ)

• The forecast of revenue generation from quantum computing is way above our imagination. The forecast states that by the end of 2040, the revenue for quantum computing can range from $9 billion USD to $93 billion USD. Consequently, the revenue figures for quantum sensing and quantum communication shall also increase as depicted in the graph. (Source)

(Image Source: Electro IQ)

• The market for quantum security is expected to reach $9776 million USD by 2030. The United States (36%) leads the list for generating the highest amount of revenue. (Source)

(Image Source: Electro IQ)

• The market for quantum security in finance is projected to witness maximum growth in terms of numbers, as projected by 212%, followed by crypto services at 182%, from 2021 to 2030. (Source)

(Image Source: Electro IQ)

• As of November 2022, the following depicts the use of quantum computing varies with varying field types. Particularly, in the finance industry it is most widely used in complex stimulation and modelling problems. (Source)

(Image Source: Electro IQ)

• As of 2022, China holds the top position followed by the European Union and the United States to have the highest quantum computing funding. (Source)

(Image Source: Electro IQ)

Cybersecurity in Finance

• Cybersecurity in finance can be termed as the security measures to protect your financial data and digital assets from unauthorised access and cyber threats. 

• In simple words, protection of your digital financial assets is cybersecurity. It is similar to putting strong locks to your homes in order to protect them from thieves. 

• With everything in the financial industry digitalised, from net banking to stock trading, everything is over the internet now, therefore cybersecurity has become a necessity in finance now.

• Major cyberattacks include, phishing attacks, ransomware attacks, Distributed Denial of Service (DDoS) attacks, data breach and identity thefts.

• As per FBI’s Internet Crime Report 2023, $10.3 billion USD financial losses occurred in 2022 due to cyberattacks. (Source: FBI Internet Crime Report 2023)

(Image Source: FBI Internet Crime Report 2023)

• 70.13% of cyberattacks attacks in 2023 were caused due to ransomware. Through ransomware hackers can take access from the original owner and manipulate financial data on their own. (Source)

(Image Source: Statista)

• In 2018, Cosmos Bank cyberattack is an example of use of malware for carrying out fraudulent transactions globally. Hackers bypassed the ATM switch system to steal INR ₹94 crore.

• In 2016, Bangladesh Bank heist was executed by some cyberattackers. Attackers tried to steal $1 billion USD out of which only $81 million USD were successfully stoten.

• Financial sector is dependent on key technologies to protect financial data and our digital assets. These methods include integration of financial systems with artificial intelligence and machine learning, implementing transparent blockchain technology in systems, Multi Factor Authentication (MFA), and by encrypting your sensitive data. 

• Globally, JPMorgan uses AI incorporated cybersecurity solutions to monitor threats in real time. Similarly, RBI in India has instructed every bank to use AI and ML to analyse transaction patterns and detect frauds.

• Major banks in India like HDFC and ICICI have implemented MFA combining passwords with OTPs to register mobile numbers. Similarly, Paypal makes use of MFA by asking for password and biometric verification for login and payment approvals.

• SBI has adopted robust endpoint protection, protection against malware. Similarly, Goldman Sachs uses cloud solutions to conserve user information and financial data.

• Aadhar-enabled Payment System (AePS) makes use of encryption and biometric authentication to carry out secure financial transactions.

• Bank of America uses a zero-trust model, it ensures that no one is trusted by default, even if the person is in the network. Yes Bank uses blockchain for secure financing transactions.

• To secure themselves and their financial assets, all financial institutions use one or the other technological advancement as a part of their security against threats. These technologies are commonly termed as technological trends in finance.

Beyond Technology: The Pursuit For True Spiritual Knowledge 

As we navigate through the technological trends in finance, be it the use of artificial intelligence and machine learning, incorporating the use of fintech in the global rise of mobile payments or the shift in the focus towards sustainable finance, it is clear that technological advancements are redefining how we live, work and interact with each other. But amid all this rapid rise and development, have we taken out a moment to ask ourselves: What is the purpose of all this advancement? Are we here just to witness these technological advancements? Is financial growth the only purpose of human life, or is there a deeper meaning?

Jagatguru Tatvdarshi Sant Rampal Ji Maharaj has emphasised about knowing the primary purpose of human life which is not the use of technology to manage your personal finance and gain material wealth. Technology can enhance our systems but only through the right spiritual wisdom and true spiritual knowledge, we can explore life’s deeper purpose, the way that leads to ultimate peace and salvation. 

Yes, salvation, initially it may appear to be a vague term but through the deeper insights extracted from the true spiritual knowledge imparted by Sant Rampal Ji Maharaj it becomes easy to identify the value of this precious human birth. Our human life is just given to us to attain salvation by worshipping Supreme God Kabir through the method of worship as outlined in our sacred texts. And only by seeking refuge in a Tatvdarshi Sant or Complete Saint, this can be done. 

Presently, Sant Rampal Ji Maharaj is the Tatvdarshi Sant as outlined in holy Geeta ji in verse 34 of chapter 4. He is providing us with the true method of worship as outlined in verse 23 of chapter 17 of holy Geeta ji. It aligns with the method of worship imparted by Supreme God Kabir approximately 600 years ago. And now as His present incarnation, Sant Rampal Ji Maharaj is benefiting us with unimaginable benefits through the same method of worship.

Along with serving the by-products of this worship, which we call as worldly benefits, including protection from life threatening diseases, protection from untimely death, guarantee of a satisfied life, and much more, the worship also serves its primary purpose of granting salvation, the permanent place at the everlasting abode Satlok. Explore His unrivalled spiritual knowledge about the creation of the universe in the following video:

For more detailed insights about this path-breaking spiritual knowledge imparted by Sant Rampal Ji Maharaj visit His website www.jagatgururampalji.org or alternatively you can also visit His youtube channel ‘Sant Rampal Ji Maharaj’ to watch His spiritual discourses in detail.

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