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Top Tech Trends Shaping the Future of Financial Planning


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June 11, 2024

Picture this: You're sitting at your favorite coffee shop, sipping a cappuccino, and managing your finances effortlessly on your sleek tablet. Sounds like a scene from a sci-fi movie, right? Well, it's closer than you think.

The financial services industry is undergoing an amazing transformation thanks to a boatload of cutting-edge technologies.

Let's go over the top trends that are shaping the future of financial planning and hint: it's all about tech!

Key Takeaways:

AI is essential in financial services, improving customer interactions and security.

Cloud technology will be key, but managing costs will be important.

Digital screens are revolutionizing how businesses engage customers.

Advanced security measures are vital to combat sophisticated cyber threats.

Financial services within non-financial platforms will grow, fueled by the popularity of BNPL.

Low-Code/No-Code platforms allow finance professionals to create custom solutions without deep programming skills quickly.

1. Artificial Intelligence

AI has now become an essential tool in the financial world, revolutionizing the industry. In 2024, we expect to see a significant increase in AI-driven automation, focusing primarily on enhancing consumer interactions with customer service tools.

Key advancements include:

- AI-Powered Chatbots: Improving exponentially, chatbots have experienced a huge growth rate in successful interactions, enabling better customer experiences.

- Fraud Detection: AI systems are now integral in spotting fraudulent activities, improving security, and reducing human supervision.

- Personalized Financial Advisors: Available 24/7, providing real-time insights and advice based on spending habits and financial goals.

2. Cloud Technology

By 2021, cloud technology has already been adopted by 54% of companies working in the financial services industry, and by 2024, it is expected to become a cornerstone technology. The move towards cloud technology allows firms to be more flexible, cost-efficient, and scalable.

Key Points to Consider:

- Adoption Challenges: One of the primary challenges companies will face is rising costs driven by increased demand for cloud services, a trend that was partly accelerated by the COVID-19 pandemic.

- Cost Overruns: Cloud services can be prone to cost overruns due to unplanned cloud adoptions, improper merger and acquisition integration, and data egress fees (charges from cloud providers for moving or transferring data).

To deal with these challenges, financial service companies should engage with external support. This approach ensures:

- Smooth Transition: Expert assistance can make the adaptation process smoother and more effective.

- Unique Cloud Ecosystem: External experts can help create a unique and tailored cloud ecosystem for the business, improving personalization and user experience.

- Brand Profile Enhancement: A well-implemented cloud strategy can enhance a company's brand profile, thanks to increased personalization capabilities.

3. Digital Signage

Digital screens captivate with sharp visuals and swiftly changing ads. Found in retail stores, restaurants, and corporate lobbies alike, digital signage transcends mere aesthetics—it updates rapidly, keeping information pertinent.

Real-time promotions? Captured. Interactive directories? Included. Custom animations? Absolutely.

As technology advances, expect digital signage to innovate further, blending utility with appeal. Watch as digital signage solutions for banking help businesses connect more effectively with their audiences.

4. Next-Gen Cybersecurity

Cyber attacks, akin to pesky mosquitoes—ever-present and relentless. However, come 2024, financial institutions will fortify their defenses with next-gen cybersecurity measures.

With the average consumer now more vigilant about data security, expect this heightened focus to be among the key digital trends in financial services.

Forget traditional methods; we're talking advanced techniques:

- Biometric Authentication: Not just improving user experience but boosting consumer confidence in corporate cybersecurity, thanks to increased convenience.

- Endpoint Security: Tailored to quickly identify malware and other security threats, ensuring individual devices—mobiles and laptops alike—are well-protected.

- AI Risk Assessments: Designed to counter the sophisticated phishing attacks often deployed by state actors, significantly reducing risk.

- Quantum Computing Security: As the quantum era dawns, so too must our defenses evolve, capable of detecting and deflecting quantum-era cyberattacks.

- Cyber Threat Intelligence: With AI predictive modeling at its core, this will foresee potential threats and generate automated responses to counter them.

5. Embedded Finance

Integrating financial services into non-financial platforms offers consumers seamless and convenient access to banking, lending, and payment solutions. Imagine booking a ride and receiving instant credit options within the app—embedded finance makes this and much more possible.

In 2024, we can predict a surge in the adoption of embedded finance, marking it as a significant digital trend. This widespread adoption will extend across various platforms, including e-commerce and social media.

The increased popularity of Buy Now, Pay Later (BNPL) services will further push this democratization, offering flexible payment options to new and existing consumers alike.

Key Insights:

- BNPL Influence: The rise of BNPL services will drive the adoption of embedded finance, giving consumers more flexibility and financial freedom.

- Regulatory Hurdles: The perception that embedded finance hasn't reached its full potential stems from regulatory challenges. However, with state institutions becoming more aware of its potential, we can expect positive regulatory advancements.

- Democratizing Finance: These innovations will democratize access to financial services, providing more choices and enhancing financial inclusion.

As government regulations evolve to better accommodate these technologies, embedded finance will likely overcome its current limitations, further expanding its reach.

This evolution will offer consumers an array of financial services directly within their favorite apps, promoting a level of convenience and accessibility previously thought impossible.

6. Low-Code/No-Code Solutions

Why wait months for an IT project when you can build it yourself? Enter low-code/no-code platforms, empowering non-techies to create custom solutions without deep programming knowledge.

Finance professionals are becoming 'amateur developers,' creating applications that meet their specific needs. This speeds up innovation and makes financial services more adaptable and consumer-friendly.


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About the author

Robert Surdel

Robert Surdel is a copywriter/content team leader with a knack for writing compelling and informative pieces. When he's not spending time in nature, he loves to learn about the past, AI, and the mysteries of the human brain.

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