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    The Biggest Banking And Financial Services Trends For 2024

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    2024 is expected to be a landmark year in the banking and financial industry, marked by significant change and transformation. The impact of AI will be critical and permeate every aspect of the sector, from innovating customer service to reinventing financial management tools to streamlining back-office operations. This article provides an insightful overview of the key trends poised to drive these changes in the year ahead and beyond. When effectively leveraged, these advances have the potential to deliver more efficient, innovative, and cost-effective solutions in banking, investments, and insurance. However, there are challenges that must be addressed to implement these changes safely and ethically.

    Generative AI in Fintech

    Fintech generally refers to technology that gives consumers more power over how they manage, spend, and invest their money. The most notable application of generative AI is chatbots, where customers increasingly communicate with banking apps and online money services in natural language.Bank of America, Wells Fargo, BlackRock, and Citigroup are already released or announced Work on generative AI. Thanks to generative models like those powering ChatGPT, we can expect innovations such as personalized financial planning and bespoke investment strategies based on customer profile and behavioral data.

    sustainable finance

    Now more than ever, we expect the institutions we work with to prioritize sustainability and ESG factors in their decision-making. In the financial services sector, this means supporting investments in green initiatives such as renewable energy, recycling and reducing carbon emissions. Sustainable financial products are emerging and customers can be assured that their money is not being used to harm the environment or society while it is drawing attention to bank vaults.

    Digital currency and cryptocurrencies

    Digital currencies and cryptocurrencies will firmly regain the attention of financial services in 2024. It is reported to be used in over 130 countries. Investigation of use or adoption Meanwhile, Bitcoin's recovery from the 2021 crash is attracting renewed interest from innovators and investors. Of course, outside of CBDCs, the crypto space is still the wild west, so we might expect more moves towards governance and regulation of those doing business there.

    customer experience

    In 2024, customer experience (CX) will be driven by technology that analyzes every touchpoint in the customer journey to reduce friction and improve satisfaction. On top of that, new immersive technologies such as VR are beginning to offer new and more engaging ways for us to interact and engage. As the role of CX continues to grow, Main role There is clearly a direct link between customer loyalty and business success when it comes to purchasing decisions, and this will be a priority for more financial services companies in 2024.

    Insurance using AI

    Thanks to AI and its ability to identify patterns in data, more insurance companies will offer personalized products based on an individual's assessment of risk. In theory, more accurate risk assessments lead to fairer insurance and lower costs. However, the industry will face privacy and data protection challenges, as well as the risk of AI bias.

    open banking

    Open Banking is based on the principle of giving us control over our financial data and how it is used. APIs allow you to securely share information with other applications, services, and tools that provide useful services. By 2024, as there will be greater recognition of the importance of understanding who owns data and what they are doing with it, and will also encourage service providers to engage in competitive innovation. This will be a key trend in 2020.

    Cybersecurity and fraud detection

    The increasing frequency and complexity of cyber threats and the ongoing AI arms race between cyber criminals and organizations means that cybersecurity continues to be a key trend. Combating these threats requires a strategy and continued investment in tools, infrastructure, and skills.This is why Gartner prediction Global spending on security and risk management is expected to reach $215 billion in 2024 and increase by 14.3% in 2023.

    process automation

    Automating manual and repetitive elements of back-office processes will continue to drive efficiency and transformation in 2024. Tasks such as onboarding new customers, processing routine transactions, document verification, KYC checks, and compliance will increasingly be managed by AI.

    blockchain banking

    We didn't hear much about blockchain last year because we were all focused on generative AI. However, distributed ledger technology is becoming increasingly common in financial services.researcher Predict That spending is expected to reach $19 billion in 2024, up from $4.5 billion in 2020. Apart from cryptocurrencies and digital currencies (covered above), there are likely to be more use cases for blockchain, such as creating smart contracts, establishing trust, streamlining payments, and authentication. transaction.

    regtech

    regtech It refers to the integration of technology into tools designed to help banks and insurance companies deal with compliance and regulation. This includes using tools such as AI, blockchain, and cloud computing to perform compliance tasks. This trend will become even more pronounced in his 2024 due to the increasing complexity and volume of regulatory requirements in financial services, especially those related to personal data and privacy.

    These new trends in banking and financial services not only promise a transformational journey, but also highlight the critical balance between innovation and responsibility, ensuring that finance is not only more efficient and customer-centric; Setting the stage for a more ethical and inclusive future.

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