5 Major Financial Services Tech Trends in 2024

Updated On : April 2024

At the threshold of 2024, the financial services sector is ready to experience the greatest technological turmoil. While the world market is still mainly concerned with the macroeconomic woes of high interest rates or overwhelming inflation, the sector controlled by money and profit is on the brink of everything.

From automation and increased efficiency to a plethora of different factors forming new banking and capital market trends, organizations of a wide range have to stay alert and follow the demands of time if they decide to be a part of the process and benefit from changes.

In this blog, we will breakdown the 5 major fintech trends that will facilitate change across the financial services sector in 2024.

1. Generative AI

The most significant element will probably be generative AI, which is fundamentally a particular type of AI technology enabling machines to produce human-like images with such things as text or art. Such technology has already reshaped the customer experience and facilitated numerous applications in wealth management, but it can go even further and trigger more changes in the future.It is likely that in 2024, generative AI will be forcibly present in the formation of next-generation chatbots and virtual assistants, almost crossing the line of human comprehension of the nature of machines.

2. Hybrid Cloud

The other tool engaging generative AI will be hybrid cloud. Also, with the great interest of a wide variety of players in the fields of computing, analysis, and data storage, the upcoming years will define greater implementation of hybrid cloud models and their augmented optimization of existing performance, security, and regulatory accommodations where the public cloud comprises on-premises data tools.

3. Cybersecurity Risk Management

Naturally, the adoption of hybrid and public clouds results in an increasing attentiveness to the subject of cybersecurity risk management. The need for appropriate measures is still crucial for the financial sector. Threats are now better than ever at penetrating the systems of financial institutions, and they grow more creative daily. Hence, organizations need to lean heavily into predictive analytics, automated threat detection, and the ability to respond effectively to fraud, data breaches, and disruptive malware.

4. Customer Experience

A positive customer experience will be another crucial area of technological differentiation for fintech companies. AI, machine learning, natural language processing, and other advanced analytics will enable a level of personalization and predictive interaction that was never possible earlier. With better chatbots, recommendation engines, custom marketing, and tailored advice, customers will demand more and more of this technology- AI enabled CXM.

5. Open Banking

Open banking APIs, the technology enabling safe access to the financial data of customers, may also gain traction in 2024. Customers increasingly value transparency and data portability, and APIs can act as adhesives, ensuring the systems of banks and the broader fintech world can exchange data effectively.

Conclusion:

2024 is set to be a pivotal year for financial services. While generative AI will be a key driver of automation and personalization, hybrid cloud will streamline data-driven innovation with an emphasis on security and compliance. Cybersecurity, customer experience, and open banking, on the other hand, could bring about wholesale change in the industry, shaking up business models and customer relationships.

Financial institutions thriving in 2024 will view such technologies as strategic enablers. With the right mindset and the right investments, they can capitalize on opportunities and remain competitive.

Nelito Systems offers customized solutions and services for its clients, from financial institutions and other sectors. To learn more about it, write us at marketing@nelito.com or visit us at Nelito Systems.