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Top 4 emerging financial services trends

As technology continues to evolve rapidly, so do the trends in financial services. CFOs need to be aware of the new technologies and trends that are emerging to stay ahead of the curve. In this blog, we'll look at four of the most important financial services trends for the coming year and how they might change the way business is conducted. From the rise of open banking to the use of digital wallets, we'll explore how these trends could impact the industry and what CFOs should be looking out for.

1) The rise of fintech

"Fintech" refers to the intersection of financial services and technology. This growing trend is reshaping the way financial services are delivered and consumed. The rise of fintech has created new opportunities for financial services organizations and startups alike to develop innovative solutions that enhance customer experience, streamline processes, and reduce costs.

Fintech solutions have become increasingly popular among consumers due to their convenience, accessibility, and affordability. From mobile banking and digital payments to robo-advisors and crowdfunding platforms, fintech is transforming traditional banking services.

This trend has also spurred competition between established financial organizations and fintech startups. As fintech companies continue to disrupt the market, banks and other traditional players are taking notice and beginning to adopt new technologies to stay relevant.

The rise of fintech presents both challenges and opportunities for financial services companies. CFOs must stay abreast of these changes and invest in new technologies to remain competitive and provide the best possible experience for their customers.

2) The growing importance of cybersecurity in financial services

As financial services become more digitalized and interconnected, the need for strong cybersecurity measures has become increasingly important. Cyberattacks and data breaches seriously threaten financial services organizations and their clients, and the consequences can be severe. For this reason, cybersecurity has become one of the most critical topics in financial services.

The main goal of cybersecurity is to protect sensitive data, prevent unauthorized access, and reduce the risk of financial fraud. This involves implementing various measures such as firewalls, encryption, and biometric authentication. Furthermore, financial services organizations must stay up to date with the latest threats and trends in cybersecurity and ensure that they have the appropriate resources and personnel to combat these threats.

The rise of fintech and mobile banking has also made cybersecurity more complex as financial services become more accessible through multiple channels and devices. However, with the right strategies and tools, financial services organizations can stay ahead of the curve and protect their clients from cyber threats. As cybersecurity continues to grow in importance, CFOs must prioritize it as a critical aspect of their overall financial strategy.

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3) The impact of artificial intelligence and machine learning

Artificial Intelligence (AI) and Machine Learning (ML) have revolutionized various industries, and financial services are no exception. These technologies have become increasingly prevalent in financial services organizations, providing valuable insights and streamlining processes. 

AI and ML can process and analyze vast amounts of data in real time, enabling financial service providers to make more informed decisions. For instance, AI-powered chatbots can interact with customers, answer their queries, and assist with basic transactions. This not only enhances customer service but also reduces operational costs.

AI and ML also play a crucial role in fraud detection and prevention. By constantly analyzing patterns and anomalies in financial transactions, these technologies can identify potential fraudulent activities, enabling organizations to take timely actions.

These technologies are driving the rise of robo-advisors, automated investment platforms that provide personalized investment advice based on a client's risk tolerance and financial goals. These platforms use algorithms to create optimized investment portfolios, making investment services more accessible and affordable for individuals.

However, with the increasing use of AI and ML, financial services organizations need to address the ethical and regulatory challenges associated with these technologies. Transparency, fairness, and accountability must be ensured to maintain trust and credibility in the financial services sector.

4) The evolution of digital payments and mobile banking

In recent years, digital payments and mobile banking have revolutionized the way individuals and businesses manage their finances. This trend is only expected to grow in the coming year, with new advancements and innovations making financial transactions even more convenient and efficient.

One of the key drivers of this evolution is the widespread adoption of smartphones. As more people own smartphones, the demand for mobile banking services has surged. With just a few taps on their screens, users can now easily transfer funds, pay bills, and manage their accounts on the go.

Digital wallets and payment platforms are becoming increasingly popular too. These platforms enable users to store their payment information securely and make quick and hassle-free transactions with a simple scan or tap. This convenience has appealed to consumers and benefited businesses, as it eliminates the need for physical cash or cards and reduces the risk of fraudulent activities.

Integrating biometric authentication methods, such as fingerprint and facial recognition, has enhanced the security of digital payments. These features provide an additional layer of protection, making transactions more secure and reducing the risk of identity theft or fraud.

As technology advances, we can also expect to see more innovative solutions in mobile banking and digital payments. For instance, AI and ML algorithms can help organizations provide personalized recommendations and tailored services to their customers based on their spending habits and financial goals.

How Unit4 solutions can help your organization

Unit4 uses cutting-edge technology and offers a range of solutions that can streamline processes, enhance efficiency, and provide valuable insights for CFOs. Unit4 FP&A software provides features such as automated reporting, budgeting, and forecasting, as well as comprehensive analysis tools. With our software, CFOs can have a clear and real-time view of their organization's financial performance, enabling them to make informed decisions and strategies.

Unit4 offers security solutions that can detect and prevent cyber threats, ensuring the safety of sensitive financial data and protecting organizations from potential breaches. They also integrate AI and ML technologies with advanced capabilities that can automate routine tasks. CFOs can leverage these technologies to improve operational efficiency and productivity, allowing them to focus on strategic planning and value-added activities.

You can check out our suite of solutions here.  

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