Banks and credit unions rethinking priorities amid economic uncertainty
New digital banking platforms, the rise of embedded finance, the advent of composable solutions and the expansion of third-party collaborations are creating new horizons for growth, while the current economy is posing significant challenges for customer acquisition, asset liability management, brand differentiation and profitability.
As we progress through 2023, the financial services industry finds itself on the cusp of a new era of digital banking transformation. It is being powered by rapid technological innovation, evolving customer expectations, a shifting economic landscape and the emergence of new business models.
The digitalization of finance has created opportunities for banks and credit unions to scale their operations and reach a wider customer base almost instantly. The emergence of new artificial intelligence tools has accelerated these trends.
The path ahead is not without challenges, however. Increasing interest rates and recent financial institution failures continue to pressure both the ability to generate loans and retain customer deposits.
With growth and revenues both at risk, organizations must prioritize the following needs: to improve back-office efficiency, to enhance the personalization of customer experiences, and to focus on the increasing threat of cyber-attacks and data breaches.
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