2024 FinTech Regulatory Trends Report

2024 saw increasing regulatory activity across payments, crypto, and embedded finance. Policymakers focused on systemic resilience, consumer protection, and integrating new technology risks into existing frameworks.

Geopolitical tensions and macroeconomic pressures also affected supervisory priorities, with many regulators requesting enhanced operational resilience and third-party vendor oversight from fintech firms.

Open Banking matured into Open Finance in several jurisdictions, with broader data portability rules and increased emphasis on consent management and data minimisation.

Payment regulation tightened around stablecoins and cross-border rail interoperability, prompting industry initiatives to standardise APIs and improve reconciliation standards.

Regulatory frameworks for crypto continued to crystallize, with jurisdictions adopting MiCA-like approaches or enhancing existing securities and AML regimes to cover tokenised assets.

Supervisors emphasised custody standards, segregation of customer assets, and clear licensing pathways for custody and trading services to reduce operational risk.

Regulators balanced innovation with consumer protection: measures included clearer disclosure requirements, limits on high-risk product marketing, and tighter rules for credit underwriting by non-bank lenders.

At the same time, regulators promoted digital ID initiatives and sandbox programs aimed at improving access to financial services for underserved populations.

Authorities increased focus on third-party concentration risk, cloud outsourcing, and cyber resilience. Many supervisors issued guidance requiring scenario testing and recovery objectives for critical services.

Fintechs were encouraged to demonstrate governance over vendor supply chains and to include dependency mapping in continuity planning.

Expect continued harmonisation efforts across major markets, with an emphasis on adaptability and supervisory engagement. Fintechs should prioritise regulatory mapping, invest in compliance-by-design, and engage proactively with sandbox or pilot regimes.

Embedding robust data governance, clear consumer disclosures, and demonstrable resilience plans will be key differentiators when entering new markets or seeking partnerships with incumbent banks.