10 Trends Defining Growth for Financial Services Businesses in 2024
Published 25 Jun 2024 · Propello Cloud · Propello Cloud
Overview
Financial services are rapidly evolving due to digital transformation, data analytics, and regulatory changes. Fintechs are challenging traditional banks, and open banking is creating new opportunities. Compliance with regulations like PSD2 and ESG is crucial, while AI and cybersecurity are key focus areas.
Key Insights
- Digital Transformation: Fintechs are using technology to offer innovative services, challenging traditional banks. This is verifiable through the rise of digital-only providers.
- Data-driven Insights: 78% of customers prefer personalised services, highlighting the importance of data analytics in customer retention.
- Open Banking: Statista predicts a 50% annual growth in open banking users from 2020 to 2024, driven by regulations like PSD2.
- Compliance: 79% of banks expect increased regulations, necessitating improved compliance processes.
- Cybersecurity: Financial services were among the most breached industries in 2022, with 254 million records compromised.
BFSI Relevance
- Why Relevant: These trends impact how financial services operate, compete, and comply with regulations.
- Primary Sector: Financial Services
- Subsectors: Retail Banking, Corporate Banking, Asset Management
- Actionable Implications: Invest in digital transformation, enhance data analytics capabilities, ensure compliance with new regulations, and strengthen cybersecurity measures.
executive article global