The financial world is experiencing a rapid transformation and financial technology is on the rise. With continuous innovation, 2024 promises to be a truly transformative year for the banking and financial services sector. Below are the top trends that can dominate the financial industry in the year ahead.
Prioritize digital customer experience
There is a huge transformational change from a traditional service mode to a digital platform. Online consumers have become more prevalent, facilitating businesses to increase investment in digital customer engagement. According to a study by Futurum Research, 85% of organizations reveal that their customers are now more digital than ever.
Providing a personalized experience is a pivotal strategy to enhance customer loyalty and competitive advantage. That is why banks now leverage various cutting-edge solutions to meet customer demands, from digital banking to omnichannel banking, collaboration with fintech and open banking, etc. For example, omnichannel banking provides customers with an integrated, seamless experience via multiple channels, including online banking, mobile apps, branches, etc.
To attain a seamless digital customer experience, financial organizations can take advantage of Artificial Intelligence (AI) and Machine Learning (ML) to provide real-time personalized financial recommendations for customers.
- By analyzing customer behaviors, needs, and wants, AI can provide superior customer support and deliver personalized products/services that are tailored to customer’s financial behavior and spending habits.
- Machine Learning algorithms can assist in discovering and analyzing patterns that facilitate effective predictions and appropriate product offers.
Adopt next-generation technologies
In 2024, the traditional technology infrastructure in the financial industry is expected to be replaced by more cutting-edge technologies to provide agile and efficient solutions.
AI and Machine Learning
According to Business Insider, 80% of banks recognize the potential opportunities of AI and ML, bringing the potential for higher ROI across business segments.
AI and ML are proficient in mimicking a live employee through chatbots and voice assistants, strengthening customer relationships, and delivering personalized insights and recommendations.
Besides, AI’s capabilities can analyze a huge amount of data sets to identify patterns, which guide financial institutions in making more strategic decisions. This involves detecting potential risks or opportunities or determining consumer patterns based on transaction history or spending habits.
Banks are also implementing AI and ML to detect and prevent fraudulent activities, perform effective anti-money laundering (AML) processes, and enable know-your-customer (KYC) regulatory checks.
AI and ML in banking will become more mature in the future, leading to increased customer satisfaction, enhanced customer loyalty, and cost savings.
According to a 2019 report, nearly 85% of banks have already implemented Intelligent Automation (IA) to accelerate automation in several core functions. The technology solution allows banks to reap many benefits. By integrating advanced automation solutions, such as RPA, with AI capabilities such as Machine Learning, Natural Language Processing (NLP), or Computer Vision, financial services organizations can expand from automating specific tasks to end-to-end processes.
Intelligent bots can process unstructured data such as legal and regulatory documents, customer data, transactions, etc., and extract relevant data faster for further processing without human intervention. Besides, financial businesses take advantage of Intelligent Automation to identify fraud and suspicious transactions. This reduces processing times while improving compliance and security.
Leveraging Intelligent Automation can accelerate several processes in the banking and financial services industry, including KYC, loan processing, mortgage application processing, etc. This enables banks to deliver significant improvements in operational efficiency, productivity, cost savings, and customer experience. Banks can also free up staff to focus on more complex work and enable them to deliver greater value through innovative tasks.
Blockchain is poised to revolutionize the financial industry due to its ability to create a secure, transparent, and decentralized ledger system. This ensures that financial transactions and assets are recorded and tracked in an immutable manner, removing longstanding friction, and ensuring security and authenticity in a centralized system.
All network participants have access to a distributed ledger where transactions are recorded only once, paving the wave for faster transactions, automated contracts, greater trust, and security.
Foster Open banking
Open banking allows third-party access to a wider range of financial sectors and products between non-banking financial companies (NBFCs) and banks through application programming interfaces (APIs).
Open banking is a driving force of innovation in the financial industry. Open banking helps banks reach a diverse range of customers at reasonable costs through other partner applications. Banks can get a more accurate picture of a consumer’s financial situation and create personalized products and services, thereby increasing the number of loyal customers.
On the other hand, with Open banking, customers can see an overall picture of their financial situation from banks and access a wider range of products and services. Besides, Open banking also includes account aggregators that guarantee customers have better control over financial data through a single platform.
Expand Bank-as-a-Service (BaaS)
Bank-as-a-Service (BaaS) emergence is predicted to open the door to new sources of growth for the banking and financial services industry. With BaaS, businesses can integrate financial services and products into their platforms seamlessly, typically on non-financial digital platforms.
For financial institutions, BaaS enables them to access insights about their customers that can be used to offer a wide range of financial services to customers with reduced time-to-market, enhanced customer loyalty, and additional revenue streams. Additionally, BasS also facilitates businesses to stay ahead of the curve, adapt to the ever-changing financial landscape, and meet evolving customer expectations.
Besides, by partnering with non-financial companies, financial organizations can enhance their market reach and access new markets and customer segments. This collaborative strategy not only enhances the financial ecosystem but also creates a dynamic competitive landscape.
The banking and financial services landscape is evolving rapidly, and the up-to-date list of key trends continues to grow in 2024 and the coming years. Therefore, businesses should stay informed about upcoming trends to take advantage of new opportunities and remain competitive in a fast-paced business landscape.
The future is promising, facilitating new sources of growth and innovation. akaBot (FPT) provides optimal automation solutions to major markets around the world, delivering world-class services for businesses to overcome scalability challenges with complete services, mini solutions, and competitive licensing costs.
akaBot developed a 5-step framework to develop a custom automation process for each business problem. We focus on the integration of different technology platforms such as Artificial Intelligence, Intelligent Document Processing (IDP), Intelligent Optical Character Recognition (OCR), and Machine Learning with RPA from the very first step of automation process selection. Besides, akaBot solutions require no changes to the existing IT infrastructure and ensure compatibility with all business software for an intelligent and comprehensive automation process.
To prepare for 2024 and leverage technological advancements to meet market demands at speed and scale, contact us right away.
akaBot (FPT) is the operation optimization solution for enterprises based on RPA (Robotic Process Automation) platform combined with Process Mining, OCR, Intelligent Document Processing, Machine Learning, Conversational AI, etc. Serving clients in 20+ countries, across 08 domains such as Banking & Finances, Retails, IT Services, Manufacturing, and Logistics…, akaBot is featured by Gartner Peer Insights, G2, and ranked as Top 6 Global RPA Platform by Software Reviews. akaBot also won the prestigious Stevie Award, The Asian Banker Award 2021, etc.
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