December 2023 | Report
2024 Outlook: The Future of the Banking Industry
Banks face uncertainty and will need to adapt to industry shifts and embrace AI for strategic transformation in a competitive market
2024 Outlook: The Future of the Banking Industry
The last 18 months have been difficult for banks—but a lookahead to 2024 banking trends includes a sense of pragmatism about the reality of the new normal.
This report will explore four key areas for the banking industry in 2024. Each section of the report will focus on one of these areas, offering insights and projections for the transformative year ahead.
2-Minute Takedown
Higher interest rates and a fragmenting industry
As uncertainty around interest rates persists, banks are facing strategic decision-making challenges. This environment is augmented by, and fueling, industry fragmentation, forcing banks to adapt to maintain financial stability and a competitive edge against new industry players.
The challenging landscape for regional banks
Regional banks are facing an identity crisis amid anticipated consolidation, deposit outflows and stricter regulations. These factors necessitate a strategic overhaul to differentiate and survive in a competitive market. Regional banks must embrace new technologies and enhance their data operations to stay competitive and comply with evolving regulations.
The changing risk environment
In the wake of Silicon Valley Bank, a stricter regulatory landscape is emerging, requiring greater transparency and more comprehensive data operations from banks. Institutions must pivot toward optimized data management and digital solutions that meet modern consumer needs, using innovation to ensure regulatory compliance and risk mitigation.
Opportunities for using digital tools and artificial intelligence
Transformational technology changes are looming in the banking sector, with artificial intelligence (AI) poised to change operations, customer relations and risk management. Banks must strengthen their foundational data capacities and embrace AI not just as a tool but as a means of shifting their overall culture toward a full embrace of digital to improve the customer experience.
2024 Outlook: The Future of the Banking Industry
The challenges, banking trends, and actions that will define the year in financial services. Download our 2024 Outlook.
Previous Banking Outlooks
West Monroe’s 2024 Outlooks
2024 will bring both challenges and opportunities for businesses. The common language across industries? Efficiency and optimized workforce management. Above all, a collective dedication to digital innovation will steer the course to success in the coming year.
