Transformation of Global Finance: What Will 2024 Bring?

16 February 2024 | 17:06

The Transformation of the Financial World in 2024

In 2024, the financial world is undergoing groundbreaking changes, where central banks not only react to the future but actively shape it. At the center of these transformations are innovations in payments and central bank digital currencies (CBDCs), all while prioritizing digital security.

Main Objectives of Central Banks

Research conducted among 39 central bank institutions has shown that a significant 79.5% of them are focusing on innovations in payments and the development of CBDCs. This fact demonstrates the financial sector’s strong commitment to digital transformation and adaptation to evolving market realities.

Saudi Arabia – a Leader in Financial Innovation

Saudi Arabia has become an undisputed reference point for financial innovation, with over 200 fintech companies within its ecosystem. In just two years, this number has increased from 89 firms, indicating the rapid growth of the sector. Fintech sector revenues amount to 2.8 billion rials, showing an increase from the previous year’s 2 billion. Investments in innovation and support for startups contribute to the dynamic industry growth.

Commitment of Central Banks for 2024

Central banks have confirmed their commitment to strengthening the financial ecosystem against digital threats. Additionally, financial institutions have started to give increasing attention to climate risk, which is also reflected in their future benchmarks.

The Role of the Financial Sector in Addressing Climate Change

Despite the rapid development of fintech and innovations, cybersecurity remains a crucial element. However, the growing interest in climate risk signals a greater recognition of the financial sector’s role in tackling climate change. Actions taken by central banks and financial institutions align with global efforts aimed at creating more sustainable and secure economic ecosystems.