![Search icon](https://hackernoon.imgix.net/search-new.png?w=19&h=19)
As much as
Fears over a prospective US economic slowdown saw the Dow Jones tumble
While Wall Street’s recent volatility has seen more speculative industries like generative AI draw investor uncertainty, as illustrated by Nvidia’s (NASDAQ:NVDA) 20% decline between July and the first week of August, investors may find more sustainable opportunities within the fintech landscape, which has offered steady growth prospects throughout the industry.
The global fintech market value is expected to grow from a value of $248.21 billion in 2022 to
While the industry has experienced some challenges in raising capital in 2024, investor sentiment is
The fintech landscape has been far from calm in the wake of the pandemic, despite the sector experiencing strong growth amid mounting economic challenges.
Between 2021 and 2023,
An industry that can secure a steady income even as financing declines at a significant rate is a strong display of strength and indicates great potential for the industry should funding make its return in the coming months.
According to a Radobank survey conducted at Money20/20,
These factors can pave the way for clear skies and growth in 2025, with investors seeking to embrace a sector that’s showing strong fundamentals even as wider markets are weakening.
With this in mind, many fintech firms are now seeking to maximize profitability in the face of weakening funding levels. The implementation of scalable cost structures to
Although the generative AI boom has undoubtedly stolen investor interest away from the fintech landscape, the technology is also actively helping to grow the capabilities of fintech stocks.
For genAI solutions in fintech, we’re seeing more firms gain the ability towards delivering more focused customer support, rapid coding design, and new digital marketing capabilities to expand the industry.
We will also see generative AI pave the way for better product innovation throughout fintech, helping to improve profitability within fintech
This intelligent technology can help fintech integrate more naturally with other industries like retail. The development of AI solutions means that near-field communication (NFC) payments can be made using a number of alternative payment methods, like contactless and cryptocurrency capabilities.
In the future,
The fintech sector will also see growth stemming from the emergence of financial wellbeing. By adopting a more holistic approach to financial overviews, users will be able to
This can help to build financial inclusivity when it comes to investing while also helping to offer a level of healthcare by attempting to remove the worry from personal finances for millions of open banking users.
With a recent University College London (UCL) study suggesting that financial stress is the
The hype surrounding the future growth of fintech isn’t the same in scale as the generative AI boom that’s captivated Wall Street for the past 18 months. However, this isn’t to say that fintech investing can’t offer a more sustainable long-term proposition in comparison to the more unpredictable future of generative AI.
We’re likely to see the implementation phase of generative AI deliver new opportunities in the world of fintech, making the two technological innovations complementary to one another. With this in mind, it could certainly be worth building exposure to fintech stocks in Q3 2024.
With profitability soaring at a time when funding has been lagging, the return of investor interest in the sector could see a series of market rallies, making fintech a market that’s full of opportunity on Wall Street.