In 2023, financial institutions are forging ahead with plans to prioritize customer experience and invest in technology.
Financial Institution are focusing more-to innovate accordingly.
Top areas of focus for financial institutions
1.Developing strategies based on evolving customer demands
To stay competitive, financial service providers must continually adjust to their customers’ changing needs.
2. Uncertainty of economic recovery
Financial institutions are deeply concerned about the long-term effects of inflation on their customers, with only a small minority expressing no worries.
3. Increase in technology spending
Most of thesurveyed companies will increase their tech spending by at least 10% in 2023.
Both fintech and major corporations alike – making entry into the field will greatly influence investments over the next three years.
4. Enabling crypto transactions
The survey reveals that more than one-third of companies intend to allow cryptocurrency transactions within the next five years
5. Reduction in the number of mergers and acquisitions
Most companies do not think that M&A activity will pick back up until 2024 at the earliest, and 12% of respondents said they do not think it will rebound at all.
A recent survey by McKinsey & Co. reveals that 60% of bank corporate-development professionals anticipate increased merger opportunities in the upcoming year.
With plans to invest in technology, enable crypto transactions and shift risk strategies, organizations are preparing to meet consumer demands.