Back to blog

Trends 2024: Financial Services Industry Overview


10 min read

The adoption of digital technologies in financial services is gaining momentum. The convergence of customer demands, technological advances, and government choices will significantly impact the direction of the financial industry market trends in 2024.

The financial services market is projected to grow from $25,848 billion in 2022 to $37,484 billion in 2027 at a CAGR of 7.5%. The pace at which the industry is growing is impressive, and businesses in the niche have to keep up with the tempo by implementing the latest technologies and following the major trends.

In this post, you’ll get an overview of three branches of the financial services industry with key players indicated. Besides, You’ll find out in great detail what the top 10 trends in 2024 are.

Financial services industry overview

Private, retail, and business banking are three broad categories that are influenced by financial industry trends. These three groups represent the entire landscape of key players and influencers for businesses and organizations looking to climb the corporate ladder. Let’s have a deeper look into all three of them separately:

Personal Finance

Personal finance involves budgeting, saving, and spending one’s own income and other monetary resources over time, taking current expenses and planned purchases into account. Companies in this field prepare people for every important life event, from buying their first car to saving for retirement.

The financial sector outlook shows that as more money management moves online, customers are looking for financial institutions with online platforms and mobile apps that let them manage their personal accounts and keep track of their financial health from anywhere.

Banks and credit unions that provide personal finance management (PFM) services tend to attract younger, tech-savvy customers. Several large companies dominate the personal finance industry.

  • Chime: An American neobank whose mobile app offers banking services for free. They have developed a new Visa card to help people get a loan. Chime has also strengthened customer loyalty by providing $200 incentive check advances to one hundred thousand consumers during the coronavirus epidemic.
  • N26: A virtual neobank based in Germany. In addition to a free bank account and personal loans, N26 also offers a set of tools for personal finance management, which is an important insight of the financial sector outlook for 2024.
  • Personal Capital: A D2C (direct-to-consumer) digital wealth manager based in the United States. It helps people save money and prepare for retirement.
  • Varo: The first neobank will receive an FDIC license and a national bank charter in 2020. Insider information says that once Varo gets the go-ahead, it will add personal loans, credit cards, and mortgages to its offers.
  • Cleo: This service has an interface similar to Facebook Messenger, which you may be familiar with. You can now download the app, which uses an AI-powered chatbot to track your finances and provide customized recommendations based on your spending habits and other factors.

As the personal finance industry continues to evolve with technological advancements, these leading companies are redefining how individuals manage their finances

Consumer Finance

Consumer finance allows customers to make large purchases over time, such as a home or education, with manageable monthly payments. The financial sector outlook shows us that the main companies in the consumer financial services industry are credit card companies, mortgage banks, and companies that offer personal and student loans.

Here are examples of companies operating in the consumer finance industry:

  • American Express: A widely used payment method due to its convenient credit card services and many rewards programs. American Express has teamed up with Marriott Bonvoy to offer points for spending at gas stations and restaurants on the credit card, focusing on travel as a way to change the benefits because of the epidemic.
  • Ally Financial: Ally Financial has been operating exclusively online since going public in 2014. It offers a range of banking products, including mortgages, credit cards, and personal loans, as well as car loans and insurance.
  • LendingTree: The largest online lending marketplace in the United States. If you’re looking for a loan, LendingTree can help you get the lowest rates on anything from a car loan to a mortgage, a personal line of credit, savings and checking accounts, and even insurance.

In consumer finance, the listed companies are leading the charge by providing innovative and accessible financial solutions

Corporate Finance

According to the financial services industry report, investments, capital structure, value-added initiatives, and resource allocation are all aspects of a company’s financial activities that come together under the umbrella term “corporate finance”.

Accounting, analysis, treasury, and investor relations are all important parts of corporate finance, which aims to increase the value of a company.

In the world of corporate finance, there are three main ways to raise capital:

  • Private equity: Involves the value of a company’s privately held shares, with wealthy individuals often investing in bankrupt private firms or struggling public companies, significantly impacting the businesses they support.
  • Venture Capital (VC): Capital invested in new businesses with the hope of rapid and sustainable growth, typically comprising less than half of the company’s equity due to the high risk associated with new ventures.
  • Angel investors: Wealthy individuals who invest their money in new firms after studying financial industry reports, essentially buying a part of the firm from the founders.

For many businesses, applying for help from such entities is one of the ways to gain the necessary capital and, potentially, business assistance without taking a banking loan.

Financial Services Industry Challenges and Problems

The financial services industry has demonstrated remarkable resilience and adaptability in the face of the COVID-19 pandemic, swiftly responding to support individuals, businesses, and governments. However, the sector continues to navigate a rapidly evolving landscape, marked by several key challenges:

  1. Technological advancements: The increasing relevance of AI and ML necessitates substantial investment in technology to replace outdated systems. The pandemic has accelerated the shift towards digital channels, demanding continued innovation in tech-driven solutions.
  2. Digital customer engagement: Financial services companies are striving to engage and retain customers without relying on physical branches. The focus has shifted towards digital omnichannel strategies and exploring deep technology areas like metaverse and Web 3.0 to enhance customer experience.
  3. Digitalization and cloud technologies: Embracing digitalization with a focus on cloud technologies is crucial for providing contactless, efficient customer service. This shift requires a reallocation of funds and a reimagining of operating paradigms.
  4. Regulatory challenges: By 2025, various regulatory measures will impact the industry, particularly concerning account aggregators, digital lending guidelines, and ensuring secure financial services delivery. Compliance with these regulations is a significant challenge.
  5. Sustainability and ESG Integration: The BFSI sector is aligning its digital transformation efforts with environmental goals. Incorporating ESG objectives into products, procedures, and business strategies is becoming increasingly important, especially in mitigating climate change risks.

The financial services industry faces a complex array of challenges, from technological innovation and digital customer engagement to regulatory compliance and sustainability. Navigating these challenges successfully will be crucial for the industry’s continued resilience and growth.

Explore the fintech services by DashDEvs and find out how we can help

The modern-day fintech environment is fast passing, which is both a threat and an opportunity. Let’s review tendencies that are booming in the financial domain as of 2024:

#1 Digital Transformation On the Cloud

The cloud has become a critical component of modern banking. The cloud is more about the methods used to perform computing than the physical location of that computing. The cloud is increasingly seen as an entry point to advanced ideas, advanced processes, and higher levels of automation.

The financial services industry outlook 2024 tells that:

  • Most banks and other financial service providers can greatly benefit from the use of cloud computing.
  • Financial institutions can become truly customer-centric and data-driven when they break free from the constraints of legacy technology.
  • Wealth management is evolving into an ecosystem industry based on communication and resource sharing.

To participate in this new environment, digital transformation and open technologies are essential.

#2 AI-Driven Banking Automation

AI-driven banking automation represents a major shift in the financial sector, with artificial intelligence playing a pivotal role in transforming various aspects of banking operations. Online banks and credit unions are increasingly adopting AI technologies to improve customer service, decision-making, and operational efficiency.

Here’s what to know about AI-driven banking automation:

  • Implementing AI-powered conversational agents is useful for providing 24/7 customer support, answering queries, and assisting with transactions.
  • AI can be leveraged to analyze data for better risk assessment, personalized financial advice, and more accurate forecasting.
  • By utilizing AI it’s possible to automate routine back-office tasks, transaction processing, and compliance checks, reducing manual effort and errors.

You can discover AI use cases in banking from another our blog post.

#3 Data-Driven Approach

A data-driven approach is becoming increasingly essential in the financial services industry, leveraging the power of data analytics and artificial intelligence to inform decision-making and strategy. This approach involves collecting, processing, and analyzing vast amounts of data to derive actionable insights that can drive business growth, enhance customer experiences, and manage risks more effectively.

Analyzing this trend suggests that:

  • Financial institutions are expected to invest heavily in data infrastructure, analytics tools, and AI technologies to harness the full potential of their data assets.
  • Data-driven approach can grant a deeper understanding of customer behavior, market trends, and operational inefficiencies, leading to more informed decisions and personalized services.

To fully embrace a data-driven approach, financial organizations must prioritize data quality, governance, and privacy, while fostering a culture that values data-driven insights and innovation.

#4 Large-Scale, Real-Time Solutions

The shift to instant financial transactions is gaining momentum around the world. An overview of the financial services industry shows that while real-time payments have been around in other major economies for more than a decade, growth has been slower in the United States. This is partly because there are more than 4200 banks in the United States. In fact, real-time is ushering in a new era of immediacy in banking and wealth management, even though most of the talk about real-time is about P2P payments.

According to preliminary observations, the advent of real-time opens up endless possibilities for creativity. Customer expectations will rise, and as a result, standards for what constitutes a positive interaction will change. The shift to real-time payments and financial services is already underway, so now is the time to be ready.

#5 Mobile-First Banking

The move towards mobile-first banking is driven by the increasing demand for accessible and convenient banking services. This trend prioritizes mobile platforms, enabling customers to conduct various banking transactions directly from their smartphones. Statistics show that a significant portion of young adults primarily use mobile banking to access their accounts.

Key aspects of this trend include:

  • Development of user-friendly mobile platform-based applications for banking.
  • Providing continuous 24/7 access to banking services through mobile devices.
  • Implementing robust security measures for safe mobile transactions, including Tap to Pay and authentication.

You can discover more about the Tap to Pay functionality and how to implement it from post by DashDevs.

#6 ESG Investments

Despite rising energy prices, 41% of asset managers consider ESG (environmental, social, and governance) investments to be critical and expect them to grow in the coming years. Having strong environmental, social, and governance (ESG) competencies is now a competitive advantage for asset managers. Successful ESG investments, however, are data-intensive and technology-dependent. In fact, an asset management organization’s ESG strategy cannot be separated from its technology approach.

#7 Embedded Finance

Embedded finance is revolutionizing the way financial services are integrated into non-financial platforms. It’s about embedding banking and financial services directly into the customer journey of various industries, such as retail, e-commerce, and technology. This trend is transforming traditional business models and creating seamless, frictionless experiences for consumers.

When analyzing embedded finance trend it’s possible to observe that:

  • Embedded finance is set to become a key differentiator for businesses outside the traditional banking sector.
  • By integrating financial services such as payments, lending, and insurance directly into their platforms, companies can enhance customer engagement, increase loyalty, and open up new revenue streams.

Embracing embedded finance requires a shift towards more agile and flexible technological infrastructures, as well as a willingness to collaborate with fintech companies and other financial service providers.

#8 Open Banking and Banking-As-A-Service

Open Banking and Banking-as-a-Service (BaaS) are revolutionizing the financial industry by enabling banks and credit unions to share data and services with third-party providers via Application Programming Interfaces (APIs). This shift fosters a more integrated financial ecosystem, leading to enhanced services, increased innovation, and heightened competition.

Key insights to know about this trend include:

  • API Integration facilitates seamless data exchange between banks and external services.
  • Open banking and BaaS foster the creation of customized financial products
  • Usage of open banking and BaaS results in providing users with more choices and greater control over their financial data.

You can discover additionally about new approaches to transactions and open banking introduced in PSD3 from another our blog post.

Use fintech development assistance from DashDevs


The financial services sector has demonstrated its resilience and adaptability in the face of unprecedented uncertainty over the past two years. Real estate, insurance, investment management, banking, and capital markets organizations around the world have responded to the epidemic with remarkable resilience and adaptability. Progress is continuing and 2024 promises to be the year when more regulation and transparency requirements become market realities.

Consider DashDevs as your trusted partner in fintech development. With more than 12 years of experience and over 500 projects under our belt, we can help you embrace digital transformation and gain an edge in the financial services industry.

Contact us

Share article

Table of contents
What are the financial services predictions for 2024?
Digital transformation continues, with increased adoption of AI and blockchain for efficiency and security. ESG investing gains traction, and personalized, tech-driven financial services become mainstream.
What are the emerging risks in financial services 2024?
Cybersecurity threats escalate, regulatory compliance becomes more complex, and climate-related financial risks intensify. Operational resilience is tested by rapid technological advancements and geopolitical tensions.
What is the next big thing in banking?
Embedded finance, where financial services are integrated into non-financial platforms, is set to revolutionize banking. It offers seamless customer experiences and expands access to financial products.
How is the financial services industry evolving?
The industry is shifting towards a more customer-centric approach, leveraging technology to provide tailored solutions. Digital banks and fintech collaborations are reshaping traditional banking models.
What is the biggest challenge facing the financial services industry?
Balancing digital innovation with regulatory compliance and cybersecurity remains a significant challenge. Ensuring data privacy and protection in an increasingly digital world is crucial.
What's hot in finance?
The adoption of Artificial Intelligence (AI) and Machine Learning (ML) in the financial sector is accelerating. These technologies are being utilized for fraud detection and investment research. In 2024, their application is expected to expand, revolutionizing investment strategies and the management of finances.