Industry leaders share their 2024 Fintech Predictions (Warning: Spoiler Alert)!
Against a backdrop of geopolitical and macroeconomic uncertainty in 2023, there has been one constant: the resilience of the Israeli fintech ecosystem. In Israel, we relish the opportunity to tackle complex problems and challenge industry convention with state-of-the-art technology, providing the perfect conditions for innovation to thrive on home soil.
When reflecting on the general state of play within the global fintech ecosystem in 2023, there were several key developments that are still reverberating throughout the industry. The collapse of the Silicon Valley Bank (SVB) sent shockwaves through the sector, while the rollout of Apple’s high-yield savings product – which has already surpassed $10 billion in deposits – gave expression to the surge in Embedded Finance offerings. We’ve also seen increased government involvement in the fintech realm, with initiatives such as FedNow enabling instant and secure money transfers between banks and individuals.
Earlier this year, Ronen Assia, Managing Partner at Team8 and Co-founder of eToro published an op-ed in Calcalist, outlining how the fintech market correction precipitated by the global macroeconomic slowdown has presented the industry with new growth opportunities.
Looking ahead, 2024 is set to be a significant year for global fintech. In the below video, a selection of Israel’s top fintech company-builders, investors, and founders share their predictions for the year ahead, honing in on trends in Embedded Finance, Alternative Lending, Gen AI-powered underwriting, and RegTech.
Rakefet Russak-Aminoach, Managing Partner at Team8 anticipates the Embedded Fintech trend to gain pace during 2024, enabling platforms to meet customers where they already are, instead of forcing them to migrate off-platform to access financial services.
Following aggressive rate hikes, Amit Harel, Partner and Co-leader of Deloitte Catalyst expects to see momentum build around Alternative Lending – the provision of loans or financial services outside of traditional banking channels, often powered by data-driven technology to assess creditworthiness and offer more flexible lending options.
Hadar Siterman-Norris, Partner at Team8, is excited about the continued growth in B2B payments and RegTech throughout 2024. While demand within both verticals has elevated in recent years, Hadar predicts further innovation and disruption in the year ahead.
Noam Izhaki, Co-founder and CEO of Team8 portfolio company Ballerine, noted the trend of e-commerce platforms and marketplaces starting to engage more like fintech companies, offering financial services in various environments. In 2024, he expects this trend to continue and looks forward to tailoring Ballerine’s compliance offering to the evolving market.
Galia Beer Gabel, Partner at Team8, expects increased deployment of Generative AI among companies of every size across the industry spectrum in 2024. She is energized by the prospect of the technology evolving to solve more complex challenges such as underwriting, in particular.
For 2024, Rom Lakritz, Co-founder and CEO of Anchor, predicts greater adoption of technologies and tools that have proliferated in the past few years, helping the fintech industry re-establish its position at the apex of global industry.
Liran Amrany, Partner at Team8, expects to see a rebound in the early-stage investment landscape in 2024, spurred on by new business models and offerings that have been meticulously built in the past two years.
To hear their insights in more depth, check out the full video here.