Top Financial Trends to Watch in Quarter 3 2024

As we head into the third quarter of 2024, financial markets are gearing up for a series of shifts and opportunities. The Finance Magnates Quarter 2 2024 Intelligence Report provides detailed insights into key trends that will shape the next quarter. Here are the top financial trends to keep an eye on for Quarter 3 2024:

Increasing Dominance of Digital Wallets in APAC

The Asia-Pacific region continues to lead in the adoption of digital wallets, accounting for a significant portion of e-commerce transactions. In APAC, digital wallets captured 70% of the market share in 2023, a leap from the global average of 50%. This trend is expected to solidify in Quarter 3 2024, particularly in countries like China, where 82% of e-commerce payments are made through digital wallets. India, Indonesia, and Vietnam are also showing considerable growth in digital payments.

Regulatory shifts impacting crypto and CFD markets

Regulatory changes in key regions will play a crucial role in shaping the markets this quarter. In the European Union, the introduction of the Markets in Crypto-Assets Regulation (MiCA) in Quarter 2 2024 is set to influence crypto trading in Quarter 3 2024. This regulation will create a framework for stablecoins and require issuers to maintain strict reserves, altering the landscape for CFD brokers dealing with cryptocurrencies. The second half of 2024 will likely see a growing focus on compliance across the board.

The Continued Growth of Retail FX in Asia

Retail FX trading in Asia has seen explosive growth, and this momentum is expected to continue into Quarter 3 2024. Asia accounted for 62.1% of all FX/CFD website views in Quarter 2 2024, a significant increase from 48.5% in Quarter 1 2024. India, in particular, is a major driver, contributing over 52% of all views with Thailand and the UK also making notable contributions. Brokers like Exness, which dominate these regions, will continue to see robust engagement.

Cryptocurrency performance and Bitcoin’s volatility

Cryptocurrency markets have experienced heavy volatility in Quarter 2 2024, driven by events like the Bitcoin halving in April. Despite the halving, Bitcoin's price did not rally as expected, falling by over 12% in Quarter 2 2024. The anticipation surrounding Ether ETFs and large-scale movements of Bitcoin by institutional holders has added to the uncertainty. As we enter Quarter 3 2024, we expect continued market fluctuations, with Bitcoin and Ethereum being key assets to watch.

AI and Automation in Financial Services

The influence of AI in financial markets is expanding rapidly, particularly in areas such as compliance, KYC (Know Your Customer), and anti-money laundering (AML). Firms are leveraging AI technologies to enhance efficiency and accuracy, with significant implications for trading platforms. The third quarter is likely to see increased integration of AI-driven solutions, especially in enhancing client onboarding and operational efficiency.

Final Insight:

These trends represent just a snapshot of what's shaping up for Quarter 3 2024. For a more detailed analysis, including data-driven insights and forecasts across key markets, be sure to explore our full Quarter 2 2024 Intelligence Report.