The Future of FinTech in 2024 – Vlad Lounegov Speaks on Bloomberg Adria

Vlad Lounegov, CEO of Mbanq, shed light on the nuanced challenges and opportunities that will shape the FinTech industry in 2024. Catch the full interview on Bloomberg Adria.

Recent FinTech Growth and Challenges
FinTech had a period of significant growth over the past five years, globally. However, there were challenges in 2023, for example the collapse of Silicon Valley Bank.

FinTechs that focus on compliance and who can adjust to a changing regulatory environment emerged stronger, setting the stage for their success in 2024.

Funding Challenges for FinTech Startups in 2024
There is a changing landscape of capital access, with 2023 seeing a shift in venture capital dynamics. With increased costs of capital and restricted access, FinTech startups, especially those lacking a robust business model, might face challenges in securing funding in 2024.

Employment Trends in FinTech
Unlike other industries that are experiencing significant layoffs, there is a different trend in FinTech. While layoffs do occur, the industry is marked by a substantial amount of mergers and acquisitions (M&A). This trend helps streamline business plans, making the impact on employment less severe compared to other sectors.

Role of Emerging Technologies
Blockchain and artificial intelligence (AI) will continue to play pivotal roles in shaping the future of FinTech. Despite blockchain facing challenges post-FDX collapse, Vlad anticipates its resurgence.

AI, particularly machine learning, is expected to play a more prominent role in 2024, driving efficiency gains across FinTech services, such as lending-as-a-service and customer interaction.

Fintech’s Niche Advantage
Fintechs excel in catering to specific market niches, understanding them better than traditional banks. Vad predicts that FinTechs will continue to serve segments traditionally underserved by traditional financial institutions, such as specific demographics and industries.

Growth Dynamics and Compliance Risks
The FinTech industry is expected to continue significant growth, tempered with some concerns about potential compliance risks. Vlad highlighted that FinTechs’ ability to outpace traditional banks is attributed to their focus on technology and absence of burdensome balance sheet liabilities. Strong FinTechs, those that prioritize compliance and regulatory adherence, as well as profitable business models such as lending, will thrive in 2024.