Bridging today's challenges and tomorrow's possibilities
Last year, interest rates were headline news. The economy is now shifting gears as customers seek stability and banks adjust to increased compliance and capital allocation challenges. The financial world is walking on tiptoe, trying not to disturb the “soft landing” everyone is hoping for as inflation settles down.
However, this cautious approach may hold commercial banks back from investing in technological advances with the potential to boost productivity, simplify compliance, automate risk management and transform the customer experience.
Commercial banks may struggle to find the balance between addressing the present challenges conservatively and embracing reinvention and innovation—made possible by gen AI and advanced data tools. That balance will be the key to a smooth ride through the uncertain waters of 2024 and will propel banks toward future growth.
As we share the trends that we expect to dominate the industry for the next year, the focus is split between these two priorities. Each bank will need to calculate where its balance point lies.
Watch our leaders present the six trends on the American Banker Webinar
The opportunities that lie hidden in banks’ data will rise to the surface as they invest in systems that allow them to add high-value services to their client offers, customize these offers, automate tasks to improve efficiency, use gen AI to unlock data insights and stay ready to take on new challenges.
Although banks have been increasing their IT spend, most of that budget has been allocated to compliance and maintenance activities. In 2024, we expect to see a shift to projects with transformative potential, separating the leaders from the pack.
