We’re happy to launch our Fintech & Funds Authorized Outlook 2024, the place we sit up for the important thing authorized and regulatory developments impacting the fintech and funds panorama in 2024.
All forms of entities throughout the monetary trade – from fintechs to digital natives to established monetary establishments – are driving 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.
Elementary progress drivers
As with most industries, fintech has been hit by coalescing disruptive forces previously few years – together with excessive rates of interest, conflicts and geopolitical tensions – and these are set to proceed in 2024.
Nevertheless, the sector additionally harbours elementary progress 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.
Dealing with a extra regulated future
Within the crypto house – not too long ago related to market fluctuations and high-profile courtroom circumstances – curiosity from institutional traders in digital asset tasks helps to carry some stability.
The wind seems to be warming and a few think about {that a} “Crypto Spring” is perhaps nearing, buoyed by potential for US regulatory approval of a spot Bitcoin ETF.
The trade is going through a extra complicated regulatory surroundings but in addition recognising that embracing regulation is the important thing to engendering belief in buyer, traders and regulators.
Demand for frictionless funds – together with throughout borders
Growing demand for frictionless funds is driving a relentless evolution of cost chains. The function of Large Tech in funds is attracting regulatory scrutiny as regulators search to shut the hole between regulated monetary establishments and tech cost suppliers.
In the meantime work continues on growing and getting ready the authorized framework for varied types of blockchain based mostly funds, in a quest to unravel the moment funds and cross-border problem.
Leveraging information in finance
Open banking is shifting 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 shifting forward with the implementation of tasks that search to use the mannequin to a wider vary of information.
Managing rising AI and cyber danger
The continued proliferation of recent applied sciences brings with it new dangers for monetary establishments. Open banking, GenAI and the rise in partnerships with expertise distributors supply advantages however might expose corporations’ infrastructure to new vulnerabilities and cyberattacks. One of many key challenges in 2024 for monetary providers corporations 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 corporations. Sustaining buyer belief on this fast-moving danger surroundings will likely be a key precedence for all monetary providers suppliers.
World 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.
