DISCOVER THE TOP BANKING TRENDS OF 2024 AND WHAT THEY MEAN FOR FINANCE FIRMS AND FINANCIAL SERVICES PROVIDERS

From advancing automation and digital-first customer service to open banking and blockchain evolutions, pivotal shifts will redefine the banking landscape as the top trends of 2024 take hold. What are the major developments that banks, credit unions, fintech providers and other financial institutions should prepare for in the coming months?

Hyper-Personalization through Data and AI

Leveraging rich customer data and predictive analytics, banks will provide highly customized messaging, financial advice and relevant products catered to individuals’ spending patterns, life stage and financial personality profiling. AI chatbots offering round-the-clock support will also become de rigueur.

The Embedded Finance and Super App Surge

As fintech disruptors and retail “super apps” increasingly dominate daily financial transactions, traditional banks will feel intensifying competition. Developing turnkey banking solutions for third parties plus building out enhanced digital platforms and service marketplaces will be imperatives.

The Rise of Banking-as-a-Service (BaaS)

Relatedly, as part of 2024’s top trends, to retain customers, more incumbent banks will roll out open API developer platforms and Banking-as-a-Service offerings allowing third parties to utilize their regulatory licenses plus payment/card capabilities to power new financial products. This embedded finance movement redistributes economic power.

Environmental, Social and Governance (ESG) Alignment

With consumers and businesses seeking to align investments with ethical causes, banks will strengthen impact reporting and showcase commitments to sustainability initiatives, equitable policies and governance transparency to meet rising expectations around corporate social responsibility.

While facing margin pressure and nimble fintech rivals, traditional banks embracing personalization, platformification and purpose in 2024 can retain their competitive edge and trust with next-gen consumers and business clients alike.