In 2023 we witnessed banks regaining confidence following great efforts to navigate a tense climate of global geopolitical challenges, including war and economic volatility in 2022.
Luckily, the widespread fears concerning an oncoming recession, which were predicted by both banks and economists, did not come to fruition as expected. With banks’ future readiness now the main priority, they are faced with the challenge of re-building consumer trust after the damages caused by high-profile failures, increased borrowing costs, and generative AI (genAI) risks.
2023 began with a lot of uncertainty for banks, mainly a looming recession combined with growing geopolitical issues globally. Luckily, in 2023 the majority of banks remained economically strong, partially assisted by high interest rates; even so, they suffered from a collapse of confidence within the sector. As we begin 2024, banks begin to move forward with greater confidence; while there are still uncertainties, a lot of open issues have stabilized, with banks now having greater optimism. To move forward in a positive direction and re-establish customer confidence, banks are currently working towards improving customer financial well-being and the customer experience, while also increasing their resilience as well as sustainability and security efforts.
According to a commissioned study at SBS, in 2024, we believe banks will rebound from the setbacks experienced in previous years, moving forward with greater confidence and focusing on higher profits. We will also likely see greater transformative efforts, including collaborative ventures and third party integrations. Resilience and consumer trust will be at the forefront, with an emphasis on fortifying supply chains and adopting greater ESG (Environmental, Social and Governance) practices. Third-party partnerships continue to be a main consideration in regards to sustainable growth, while digitizing customer engagement and exploring technologies, like generative AI, will become essential for future proofing business models and increasing revenue.
In last year’s report, we highlighted 7 key trends for 2023 which would shape digital and open banking: The rise of platform-based banking, shifting from creativity to resilience in innovation, sustainable banking and corporate social responsibility, demand for embedded fintech to surge, growing awareness of financial well-being, cybersecurity to remain in the spotlight, and the future is Gen Z.
In this whitepaper, we look at seven key trends that are expected to shape the digital and open banking sector in 2024.
SBS offers innovative solutions tailored to help banks accelerate their digital transformation. Their API-first (Application Programming Interface), omnichannel approach ensures seamless customer experiences across platforms like mobile, web, and in-branch services. By partnering with SBS, banks can leverage their expertise to stay competitive and address these emerging trends effectively.
To find out more about our solutions and schedule a call with one of our experts, click here.