What lies ahead for the fintech industry in 2024?

The fintech landscape in Africa is poised for significant growth in the year 2024, with key trends such as digital payments, expansion of blockchain and cryptocurrencies, and a heightened focus on regulatory environments expected to shape the industry. In a recent interview with CNBC Africa, David Olilo, fintech expert and Founder of Neza, shared insights on the prospects of the fintech sector in the upcoming year. The interview highlighted the anticipated developments for 2024, with a particular emphasis on the involvement of larger enterprises in the fintech space and the increasing adoption of online services by traditional banks. Olilo noted that in 2023, companies like Visa made significant strides in offering innovative payment solutions, indicating a trend likely to continue in 2024. He mentioned that startups in the fintech sector may face operational challenges, leading to potential mergers, acquisitions, and a focus on lean operations to drive efficiencies. Olilo emphasized the importance of solutions that enhance consumer experiences and deliver tangible benefits, highlighting the ongoing opportunities within the fintech industry. The discussion also delved into the evolving landscape of cryptocurrency and blockchain technology in 2024. Olilo acknowledged the growing acceptance of these technologies but stressed the need for solutions that address specific challenges faced by Africans. He cited examples such as M-Pesa's success in banking the unbanked population and facilitating seamless transactions as models for future growth. While cryptocurrencies present opportunities, Olilo emphasized the importance of solutions that cater to local needs and offer practical benefits to users. Furthermore, the conversation turned to the role of artificial intelligence (AI) and machine learning in fintech services. Olilo identified AI as a significant area of exploration, particularly in enhancing customer experiences and driving operational efficiencies. He highlighted advancements in biometrics and authentication processes in traditional banks as examples of AI integration in financial services. Looking ahead to 2024, he predicted substantial growth in AI applications within the fintech sector, positioning Africa as a potential pioneer in AI innovation. Cybersecurity emerged as a critical issue in the discussion, with a focus on implementing measures to protect customer data and enhance overall security. Olilo emphasized the importance of regulatory policies and internal controls to safeguard sensitive information. He highlighted the role of tokenization in securing transactions and data, as well as educating consumers about data protection measures. Olilo underscored the need for collaboration between regulatory bodies, fintech companies, and consumers to ensure robust cybersecurity practices and build trust in digital financial services. As the fintech industry in Africa continues to evolve, the coming year is expected to bring forth new opportunities and challenges. By navigating regulatory landscapes, embracing technological innovations, and prioritizing cybersecurity measures, fintech players can drive sustainable growth and foster financial inclusion across the continent.