The financial services industry is constantly evolving. With technology continuing to advance, the sector is expected to significantly change over the next few years. From the rise of a cashless society to the increasing use of financial technology, here are five potential trends for the financial services industry in 2024.
With the increasing popularity of digital payment methods such as mobile wallets and contactless cards, physical cash is likely to continue declining. This shift towards a cashless society will not only impact consumers, but also regular and financial companies. They’ll need to continue making sure their processes and systems accommodate digital payments and transactions, or risk losing customers.
The rise of financial technology (or fintech) looks set to continue and even accelerate in 2024. Fintech companies are making the most of technology to provide innovative and convenient financial services, such as online banking, peer-to-peer lending, and robo-advisors. As these companies continue to gain traction and disrupt traditional financial institutions, we can expect to see more partnerships and collaborations between fintech and traditional financial services companies.
In the age of sophisticated data, consumers have come to expect personalisation in all aspects of their lives, including financial services. This year, we can expect financial companies to continue using data and technology to offer tailored products and services to their customers, such as personalised investment portfolios and insurance plans. This will improve customer experiences and help financial companies better understand the needs of their customers.
The financial services industry is heavily regulated, and there’s always the chance we’ll see more regulatory changes. With the rise of fintech and increasing use of digital payments, the FCA needs to constantly adapt and apply new rules and guidance to ensure the safety and security of financial transactions. Financial companies will need to stay informed and compliant with these changes to avoid penalties and maintain their customers’ trust.
Sustainability and social responsibility
In recent years, there’s been a growing focus on sustainability and social responsibility in all industries, including financial services. In 2024 financial companies will likely place an even greater emphasis on environmental, social, and governance (ESG) factors in their decision-making processes. This could include offering sustainable investment options, promoting financial literacy and inclusion, and implementing environmentally friendly practices in their day-to-day operations.
It’s clear that the financial services industry will continue to evolve and adapt to the changing landscape. By staying informed and embracing new technologies and trends, financial companies will give themselves the best opportunity to stay ahead of the ever increasing competition.