Fintech Trends In 2024: AI, BaaS, Payments, And Regulatory Scrutiny
Portfolio Pulse from Neil Dennis
The fintech industry anticipates significant changes in 2024, with AI integration in financial services, expansion of banking-as-a-service (BaaS), preparation for Payment Services Directive 3 (PSD3), and increased regulatory scrutiny following the collapse of Silicon Valley Bank. Companies to watch include Microsoft in partnership with OpenAI for AI advancements, Green Dot Corporation for BaaS, and Mastercard and PayPal regarding PSD3.
December 07, 2023 | 1:41 pm
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NEUTRAL IMPACT
Mastercard needs to prepare for the enactment of PSD3 in the EU, which will likely increase fraud prevention measures and require stricter customer authentication.
Mastercard's stock may experience neutral impact in the short term as the company adapts to PSD3, balancing potential costs with opportunities for enhanced security services.
CONFIDENCE 75
IMPORTANCE 65
RELEVANCE 60
NEUTRAL IMPACT
PayPal is also among the companies that will be affected by PSD3, necessitating adjustments in compliance and customer authentication processes.
PayPal's stock may see a neutral impact in the short term as it prepares for PSD3, with the potential costs of compliance changes offset by the benefits of improved security measures.
CONFIDENCE 75
IMPORTANCE 65
RELEVANCE 60
POSITIVE IMPACT
Green Dot Corporation is highlighted as a company to watch in the BaaS sector, which is expected to see rapid expansion in 2024.
Green Dot Corporation's involvement in BaaS, a sector poised for growth, suggests a positive outlook for GDOT's stock as demand for embedded finance solutions increases.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 70
POSITIVE IMPACT
Microsoft, in partnership with OpenAI, is positioned to benefit from the integration of AI into financial services, with potential applications in risk assessment, fraud detection, and customer authentication.
Microsoft's collaboration with OpenAI directly aligns with the fintech industry's move towards AI, suggesting a positive impact on MSFT's stock in the short term due to increased demand for AI solutions.
CONFIDENCE 85
IMPORTANCE 75
RELEVANCE 80