Navigating the Changing Landscape of Fintech in 2024

Welcome to our deep dive into the regulatory updates that are shaping the fintech industry in 2024. As we navigate through this year, we’re witnessing significant changes in the regulatory landscape that are set to redefine the future of fintech.

Regulation of AI in Financial Services

The regulatory frameworks that apply to the development and use of AI, including generative AI, are complex and multi-layered. The direction for a new, global phase of AI regulation is being set following the publication of the G7 and Hiroshima principles, the Bletchley Declaration on AI safety signed by 28 jurisdictions, the creation of an AI Safety Institute, the Biden Administration’s 2023 Executive Order on AI and AI Bill of Rights, and December 2023’s historical political agreement on the EU’s AI Act.

Crypto Spring: Regulatory Approval of a Spot Bitcoin ETF

In the crypto space, interest from institutional investors in digital asset projects is helping to bring some stability. The wind appears to be warming and some consider that a “Crypto Spring” might be nearing, buoyed by potential for US regulatory approval of a spot Bitcoin ETF.

Frictionless Payments and the Role of Big Tech

Increasing demand for frictionless payments is driving a constant evolution of payment chains. The role of Big Tech in payments is attracting regulatory scrutiny as regulators seek to close the gap between regulated financial institutions and tech payment providers.

Open Banking Moving Towards Open Finance

Open banking is moving towards open finance. Key jurisdictions have been laying the foundations for enabling the widespread adoption of open banking, with some already moving ahead with the implementation of projects that seek to apply the model to a wider range of data.

Managing Increasing AI and Cyber Risk

The ongoing proliferation of new technologies brings with it new risks for financial institutions. Open banking, GenAI and the increase in partnerships with technology vendors offer benefits but could expose firms’ infrastructure to new vulnerabilities and cyberattacks.

These regulatory updates are just the tip of the iceberg. The fintech industry is evolving at a rapid pace, and we can’t wait to see what the future holds. Stay tuned for more deep dives into the world of fintech!