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Today: Jun 13, 2024

AI to rule fintech for next five years: WEF study

1 min read

A new study conducted by the Cambridge Centre for Alternative Finance in collaboration with the World Economic Forum (WEF) has found that artificial intelligence (AI) will be the most relevant topic for fintech development in the next five years. The study, which surveyed 227 fintech firms across five industry verticals and six regions, found that 70% of respondents identified AI as the most important topic for future fintech development. Other key findings from the study include:

  • Embedded finance, the digital economy, and open banking were also identified as important topics for fintech development, with 53%-54% of respondents choosing these areas.
  • Fintech firms expressed concern about the lack of incentives to contribute to environmental and inclusion goals.
  • Consumer demand was identified as the primary growth driver for fintech firms, followed by the availability of a skilled workforce and a favorable regulatory environment.
  • Latin American and Caribbean fintech firms reported a drop in funding, while Sub-Saharan Africa had a positive view of the funding environment.
  • 55% of fintech firms recognized the importance of digital regulatory and supervisory infrastructures in supporting growth.
  • Financial inclusion was identified as an important goal for fintech growth, with a focus on reaching underserved segments such as women, low-income individuals, and rural or remote customers.

The study concludes that as the global fintech landscape continues to evolve, it is important to have regulatory environments that support innovation and financial inclusion. AI is expected to play a significant role in driving fintech development in the coming years.