With another year in the books, it’s time for small business owners to gear up for 2024.
While no one can predict the future, entrepreneurs can monitor trends to prepare for challenges and opportunities in the coming year. Especially in finance, the sooner you know what’s coming next, the more time you have to capitalize and secure a competitive advantage.
This article lists the top finance trends that should be a part of your small business strategy in the new year.
1. The coming of age for AI
Artificial intelligence is poised to significantly impact more sectors and companies, making it impossible to ignore. With regards to AI, experts foresee the following:
- Integrating AI-powered financial planning and analysis tools into accounting automation platforms and other related business applications.
- Automating fraud detection, investment management, risk assessment, and tax compliance checks.
- Generative AI tools to expedite tasks like writing financial reports, refining marketing materials, and generating legal documents.
2. Regulatory technology (RegTech) to gain prominence
RegTech products are revolutionizing compliance in the financial industry by simplifying and streamlining the process. This technology will become more prominent in 2024 due to the growing complexity and volume of compliance and regulatory requirements in financial services, particularly personal data and privacy regulations.
3. Big surge of metaverse technology
The metaverse can play a significant role in enhancing customer experience. It enables customers to interact with products and services online, bridging the virtual and the actual gap. Additionally, this technology allows companies to improve their after-sales service massively.
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With its ability to simplify the order-to-cash (02C) process, the metaverse will revolutionize order management in 2024. Besides, the technology should impact other enterprise-level operations, allowing businesses to trade with other companies and form partnerships in innovative ways.
4. Rise of financial super apps
Financial super apps focus on hyper-personalization and provide consumers convenient and easy access to various financial services, such as banking, payments, investments, and insurance.
Super apps like WeChat, Alipay, Grab, and LINE have gained notable popularity in Asia. Similar super-app payment solutions will take shape in the US in the coming years. Several financial institutions are integrating their consumer product lines into a unified app, aiming to serve as a comprehensive solution for all consumer needs.
5. Real-time payments to take off
Real-time payments (RTPs) are revolutionizing the financial industry by facilitating immediate transaction processing and settlement. Beyond expediting transactions, RTPs empower businesses to enhance liquidity management, accurately forecast cash flow, and optimize working capital.
A 2023 survey by AvidXchange, a fintech company, reported RTPs as the most common means to pay vendors, followed by credit cards and Automated Clearing House (ACH). This is unsurprising, as RTP platforms have become more pervasive following the Federal Reserve’s new instant payment service, FedNow. In 2024, real-time transaction volumes will grow even more due to suppliers’ desire for quicker payments and cost control.
The final word
As entrepreneurs navigate the uncertainties of the coming year, a proactive approach to trend monitoring will be valuable in staying ahead of the curve and making informed decisions — steering businesses toward success.
Want to know more about startups and what it takes to get started? Since 2006, Escalon has helped thousands of startups get off the ground with our back-office solutions for accounting, bookkeeping, taxes, HR, payroll, insurance, and recruiting — and we can help yours, too. Talk to an expert today.
This material has been prepared for informational purposes only. Escalon and its affiliates are not providing tax, legal or accounting advice in this article. If you would like to engage with Escalon, please contact us here.
