- 2024 will witness a significant acceleration in digital transformation within the financial services sector, spurred by hyper automation and AI integration, according to Frode Berg, Managing Director EMEA at Provenir.
- Generative AI will continue to influence the finance industry to promote efficiency and improve customer experiences. The scope of AI in various sectors of life may lead to rising customer expectations.
- Open banking is expected to undergo substantial growth globally, boosted by increased adoption and regulatory changes that mitigate existing challenges.
- Eliminating payment friction will be a key focus in 2024, with frictionless payment technology projected to reach $8 trillion.
- Financial services are expected to shift towards offering sustainable products in line with increased environmental consciousness among consumers. Net-zero banking is predicted to dominate the financial landscape in 2024.
- Fintech companies are set to expand into promising markets of Africa and Southern Europe, given potential growth opportunities within these regions.
Frode Berg, Managing Director EMEA at Provenir, predicts major changes in the financial services sector driven by digital transformation in 2024. Propelled by hyper automation and artificial intelligence (AI), Berg believes these advancements will allow financial institutions to increase their efficiency, innovate, and make informed strategic decisions using data analytics.
Generative AI is expected to have a substantial impact on the finance industry. Its implementation across various industries in 2023 encouraged its adoption and acknowledged the feasibility of AI-driven decision-making. In 2024, AI is set to continue influencing the finance sector by enhancing efficiency and improving customer experiences. The integration of AI in multiple sectors may lead to increased customer expectations.
On the subject of open banking, Berg reveals anticipation of significant growth across the UK and globally. Regulatory changes, such as the forthcoming PSD3, along with the consideration of PSR and FiDA, are expected to address existing barriers and accelerate the adoption of open banking.
Tackling payment friction is expected to be a priority for financial institutions in 2024. The convenience, flexibility, and security in payment methods facilitated by AI have increased customer expectations. Research projects that by 2024, the value of frictionless payment technology will reach $8 trillion.
Berg also believes that financial services will shift towards offering sustainable and environmentally responsible products due to increased environmental consciousness among consumers. This shift is expected to lead to the rise of net-zero banking in 2024.
He also suggests the potential for fintech companies to expand into promising markets in Africa and Southern Europe. This expansion is backed by substantial growth opportunities revealed by recent investment figures.
