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January 22, 2024

AI to rule fintech for next five years: WEF study

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 the development of fintech over the next five years. The study surveyed 227 fintech firms across five industry verticals and six regions. The key findings of the study include:

  • 70% of respondents identified AI as the most relevant topic for fintech development in the next five years
  • Embedded finance, the digital economy, and open banking were also identified as important topics
  • Fintechs expressed concern over the lack of incentives or mechanisms to contribute to environmental and inclusion goals
  • Consumer demand was cited as the primary growth driver for fintech firms
  • 56% of respondents identified macroeconomic factors as the top hindrance to growth
  • Regional disparities were observed, with Latin American and Caribbean fintechs perceiving the funding environment as a hindrance to growth, while fintechs in Sub-Saharan Africa considered it supportive
  • Fintech firms recognized the development of digital regulatory and supervisory infrastructures as effective in supporting growth
  • Financial inclusion was identified as an important aspect of fintech growth

This study sheds light on the crucial factors influencing the trajectory of the global fintech landscape and emphasizes the need for regulatory environments that foster innovation and financial inclusion.