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.
