The financial services industry is constantly evolving, and over the past couple of years, there have been significant changes due to technological advancements, changing consumer behaviour and regulatory developments. Now we’re in 2024, what should you look out for to stay ahead of the curve?
In this article, I set out 4 key trends I think will have the greatest impact this year when it comes to the financial services customer experience (CX).
1. Digital transformation and the FinTech surge
The fusion of finance and technology continues to redefine the industry, and 2024 will see an accelerated pace of transformation. Traditional banking models are evolving to embrace agility, efficiency and customer centricity.
FinTech companies, with their disruptive technologies, will play an increasingly vital role in shaping the financial ecosystem. Expect to see a surge in partnerships between banks and FinTech firms, fostering innovation and delivering a broader array of services. This includes everything from enhanced mobile banking apps and digital wallets to robo-advisers and automated investment services.
2. AI and machine learning
As compliance catches up with innovation, 2024 will see exponential growth in the use of AI-powered chatbots. These intelligent conversational agents will streamline customer interactions across channels and offer personalised recommendations that enhance overall CX. From answering queries to facilitating transactions, chatbots will become indispensable tools for providing instant and efficient service – freeing up staff to support complex queries and vulnerable customers.
AI will also play an increasingly vital role in fraud detection and prevention. More organisations will have access to cost-effective machine learning models that continuously analyse patterns, identify anomalies and predict potentially fraudulent activities in real-time. And it will become increasingly important to offer a user-friendly way for customers to protect themselves.
This proactive approach will not only safeguard institutions, but will also bolster customer trust.
3. Consumer Duty
In 2024, we anticipate a heightened focus on Consumer Duty regulation, emphasising organisations’ responsibility towards their customers. Regulatory bodies are expected to introduce measures prioritising transparency, fairness and ethical conduct in financial dealings.
Therefore, you’ll need to go beyond a patchwork approach and the initial box-ticking so they proactively address customer needs, offer clear communication on terms and conditions, and ensure that financial products are designed with customers’ best interests in mind.
4. RegTech revolution
Regulatory technology, or RegTech, will be a driving force in 2024, with increased adoption of solutions that automate compliance processes, monitor regulatory changes and enhance data security. These technologies will empower organisations to navigate complex environments (including across jurisdictions) more efficiently – reducing compliance costs and mitigating risks.
What are you preparing for?
2024 is set to be a tech-centric year for financial services. From AI and personalisation to fraud prevention and RegTech, what is your organisation considering over the next 12 months?