FinServ in 2024: A Continuous Evolution 

The software development market is evolving, and with it, the needs of organizations within Financial Services. Rapidly maturing technologies are working in tandem with innovative entrepreneurs to redefine what’s possible. 2024 is shaping up intriguingly following a wary 2023 that saw investment dip.  

When it comes to financial services specifically, there’s a wave worth riding. Some estimates state the market could reach $556 billion by 2030, and it’s hard to see any reason that growth could come to a standstill.  

AI’s impact is one piece of the puzzle. The frequency of AI usage will only expand as investment is funneled into this nascent technology. Organizations are also doubling down on improving customer experience, so much so that Finastra listed it as the main inspiration for organizations to collaborate in their 2023 State Of The Union Survey.  

An important part of that customer happiness equation is keeping their data safe as cyberattacks become more nuanced and incisive. This never-ending tug of war can be found in any industry, but with Financial Services, the value of this data requires exemplary cybersecurity measures.  

Legacy Systems And Gen-AI 

The possibilities of AI seem endless. Every day, a new capability is uncovered, and the technology is constantly being refined and improved. Utilizing it correctly is a quick way to create differentiation and garner market share. However, that’s difficult to do with antiquated systems.  

It’s generally underestimated how difficult AI implementation is, whether that be in the financial services space or elsewhere. Trying to do so with outdated tech and inefficient legacy systems makes climbing that mountain even harder. 

 That’s partly why modernization has become such an integral objective for organizations around the world. Having the capability to utilize this tech is at the forefront of organizations’ minds, especially when financial service organizations say it can cut annual costs by 10 percent. 

Emphasis On Customer Experience 

People don’t have time to waste. As fast-paced lives intersect with waning attention spans, the ability to offer efficient, streamlined experiences is more important than ever. For this exact reason, customer experience (CX) has become a talking point for organizations in the financial services industry and other markets.  

Everyone knows how painful interacting with financial institutions can be. Pulling teeth may be a preferred option. So, CX holds a unique spot as a linchpin for differentiation within financial services. Companies are seeing a boost in revenue from primary customers by up to 20%, and as such, keeping those clients happy is a top priority. By prioritizing CX, organizations show their commitment and validate a client’s choice in picking them. Emphasizing this aspect of a business is never a bad strategy, especially considering the volatility of customer retention in today’s markets.  

Cybersecurity: The Constant Struggle 

We’ve all seen the headlines. Data breaches and other security issues reserve prime real estate in customers’ heads, and organizations are scrambling to implement safeguards against cybercriminals who are becoming more sophisticated and capable than ever before. FinServ organizations are becoming increasingly intertwined as digitization continues, so the fallout can be catastrophic for these businesses—not to mention the clients whose data is actually stolen. 

The recent Bank of America breach is just one example of how important cybersecurity is in today’s technological environment. In fact, some estimate that cybercrime will cost businesses nearly $10.5 trillion by 2025. That puts the spotlight on organizations to create comprehensive security capabilities to fend off these attacks. Neo banking enables a wide range of services, but if customers don’t trust that their data is safe, they’ll look elsewhere.