We’re happy to launch our Fintech & Funds Authorized Outlook 2024, the place we stay up for the important thing authorized and regulatory developments impacting the fintech and funds panorama in 2024.
All varieties of entities throughout the monetary trade – from fintechs to digital natives to established monetary establishments – are using the wave of digital innovation. They’re going through challenges as they achieve this, together with intense regulatory scrutiny, and but the trade is proving resilient.
Basic development drivers
As with most industries, fintech has been hit by coalescing disruptive forces up to now few years – together with excessive rates of interest, conflicts and geopolitical tensions – and these are set to proceed in 2024.
Nonetheless, the sector additionally harbours elementary development alternatives. Innovators proceed to develop new tech options to deal with inefficiencies and digitalise monetary providers merchandise, providers, and market infrastructure – all of which current funding alternatives.
Going through a extra regulated future
Within the crypto house – lately related to market fluctuations and high-profile courtroom circumstances – curiosity from institutional buyers in digital asset tasks helps to convey some stability.
The wind seems to be warming and a few contemplate {that a} “Crypto Spring” could be nearing, buoyed by potential for US regulatory approval of a spot Bitcoin ETF.
The trade is going through a extra advanced regulatory surroundings but in addition recognising that embracing regulation is the important thing to engendering belief in buyer, buyers and regulators.
Demand for frictionless funds – together with throughout borders
Rising demand for frictionless funds is driving a continuing evolution of fee chains. The function of Massive Tech in funds is attracting regulatory scrutiny as regulators search to shut the hole between regulated monetary establishments and tech fee suppliers.
In the meantime work continues on growing and making ready the authorized framework for varied types of blockchain primarily based funds, in a quest to resolve the moment funds and cross-border problem.
Leveraging information in finance
Open banking is transferring in direction of open finance – regardless of some challenges. Key jurisdictions have been laying the foundations for enabling the widespread adoption of open banking, with some already transferring forward with the implementation of tasks that search to use the mannequin to a wider vary of knowledge.
Managing rising AI and cyber danger
The continuing proliferation of latest applied sciences brings with it new dangers for monetary establishments. Open banking, GenAI and the rise in partnerships with know-how distributors supply advantages however might expose companies’ infrastructure to new vulnerabilities and cyberattacks. One of many key challenges in 2024 for monetary providers companies would be the evolving and danger compliance surroundings for GenAI.
In the meantime, operational resilience necessities are increasing, presenting one other compliance problem for regulated companies. Sustaining buyer belief on this fast-moving danger surroundings shall be a key precedence for all monetary providers suppliers.
International and regional authorized outlooks
Entry our report and regional outlook video content material for the UK, EU, Asia: Discover the Linklaters Fintech & Funds Authorized Outlook 2024.
See additionally our companion report on the broader Tech authorized outlook: Discover the Linklaters Tech Authorized Outlook 2024.
