2024 proved to be a year where banking and fintech continued to mesh into a single industry. Throughout the year, I wrote several articles that examined several facets of what is going on in the industry. From the shift to engagement banking to the power of AI and digitalization, this year’s journey has been about understanding and shaping the future of financial services. Here’s my perspective on the key themes that defined the year.
1. Collaboration Over Competition: Banks and Fintech Joining Forces
This year, I’ve emphasized how the relationship between fintech and banks has evolved from rivalry to collaboration. In my interview for Crowdfund Insider, I shared how fintech firms are no longer just disruptors but vital partners for banks, helping them adapt to changing customer expectations and innovate at a faster pace.
This theme resonates throughout my other pieces, like “7 Lessons Fintechs Can Learn From Banks” and “What Banks Have Learned From Fintechs” in The Financial Brand. I’ve observed how fintech firms have started adopting the regulatory discipline and customer trust that banks excel at, while banks are embracing fintech-like agility and a customer-centric approach. This mutual learning is creating a more integrated and resilient financial ecosystem.
2. The Shift to Engagement Banking
One of the most significant trends I explored this year was the shift from transactional banking to engagement banking. In “How to Survive the Move From Traditional to Engagement Banking”, I delved into how banks must pivot from simply offering products and services to creating meaningful, personalized experiences for their customers.
Engagement banking isn’t just about adopting new technology—it’s about a mindset shift. It’s about understanding customers deeply, anticipating their needs, and building relationships that go beyond transactions. This shift is both a challenge and an opportunity for banks to redefine their value in a rapidly changing market.
3. Bridging Business and Technology
In my piece for BAI, “Smartly Connecting Business and Technology to Unlock Banking Value,” I highlighted a critical barrier to innovation: the disconnect between business and technology teams. Too often, these teams work in silos, slowing down the pace of transformation.
Aligning these functions is essential. When banks integrate business strategy with technological capabilities, they unlock tremendous value, driving better customer experiences and operational efficiency. It’s a theme I saw recurring throughout the year, particularly in discussions about how institutions can fully leverage AI and data analytics.
4. Generative AI: Enhancing Call Centers
In “How GenAI Can Fulfill Contact Centers’ Potential,” I focused on how generative AI is transforming call centers by automating tasks like call summarization, knowledge retrieval, and sentiment analysis. This allows agents to focus on more complex interactions, improving both efficiency and customer satisfaction.
Beyond call centers, GenAI has applications in fraud detection, personalized customer service, and operational efficiency. However, its true current value comes from being implemented strategically to enhance human expertise, not replace it.
5. Digitalization: A Change in Mindset
In my article for Wealt.co, “Shifting the Banking Mindset With Digitalization,” I argued that digital transformation is more than a technological upgrade—it’s a cultural shift. Banks must rethink their legacy systems and processes, but more importantly, they must embrace a mindset that prioritizes innovation and adaptability.
Digitalization isn’t just about keeping up with the competition; it’s about creating value in new and unexpected ways. This requires bold leadership and a willingness to challenge the status quo, something I’ve seen some institutions embrace wholeheartedly this year.
6. What’s Next? Trends for 2024 and Beyond
Looking ahead, my article for The Financial Brand, “Must-Follow Bank and Fintech Trends for 2024 and 2025,” captured the key trends that are shaping the future:
• Deeper collaboration between banks and fintech.
• A greater focus on personalization through data and AI.
• The growth of embedded finance.
• A rising emphasis on sustainability and ESG.
These trends reflect the themes I’ve written about throughout the year, and they signal a future that’s as exciting as it is unpredictable.
Closing Thoughts: A Year of Learning and Transformation
This year has highlighted the complexities of the financial sector and its ongoing evolution. The dynamics between banks and fintech are shifting, but there’s still a lot of work to be done. Technology is pushing boundaries, but not without challenges—whether it’s managing change and risk, addressing customer demands, or integrating new systems.
As we move into 2025, the industry will continue navigating these tensions. While the potential is there, the path forward won’t be without its obstacles. I’m curious to see how institutions will adapt and what lessons we’ll take into the next phase of this transformation.
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