Banking Trends to Watch for H2 2023 (2024)

FAQs

What is the trend in the banking industry in 2023? ›

The most prevalent trend in the financial services industry today is the shift to digital, specifically mobile and online banking (more on each of those in a bit). In today's era of unprecedented convenience and speed, consumers don't want to have to trek to a physical bank branch to handle their transactions.

The PRA's priorities include financial resilience, operational risk and resilience, risk management and governance, climate-related financial risks, diversity, equity and inclusion (DEI), regulatory reporting and data quality.

Rising geopolitical, social and economic volatility and the increasing use of AI have kept cyber attack or data breach in the number one spot among assessed business risks for financial institutions in 2023.

This report will dive further into the identified top 5 emerging technologies and digital tooling in banking 2023: cybersecurity technologies, Machine Learning (ML) and Artificial Intelligence (AI), Generative AI, mixed reality - Augmented Reality (AR) and Virtual Reality (VR), and digital wealth management ...

2023 almost went down in the history books as the year America lost faith in its banks. Over a few weeks in the spring of 2023, multiple high-profile regional banks suddenly collapsed: Silicon Valley Bank (SVB), Signature Bank, and First Republic Bank.

Pivotal trends in 2024 will fall into these categories:

Anticipate regulatory action. Deliver financial performance. Accelerate technology transitions. Embrace responsible GenAI.

For release at July 27, 2023

Bank regulatory agencies today requested comment on a proposal to increase the strength and resilience of the banking system. The proposal would modify large bank capital requirements to better reflect underlying risks and increase the consistency of how banks measure their risks.

Those come on the heels of financial sector layoffs that took place or were announced in 2023 by JPMorgan Chase Bank, Prudential Financial, TD Bank and Charles Schwab. Some of those banks — including Citibank and Charles Schwab — are cutting their head counts by the thousands or tens of thousands.

Are banks collapsing in 2024? ›

The news: Last Friday, Pennsylvania financial regulators seized and shut down Philadelphia-based Republic First Bank in the first FDIC-insured bank failure of 2024. The deposit insurance fund is expected to pay out $667 million to cover the bank's failure.

Consulting firm Klaros Group analyzed about 4,000 U.S. banks and found 282 banks face the dual threat of commercial real estate loans and potential losses tied to higher interest rates. The majority of those banks are smaller lenders with less than $10 billion in assets.

Cloud-based banking in 2024 isn't just about new tech. It's a big change that makes banks quicker, more creative, and ready for growth. With the cloud, banking is entering a new phase – it's becoming faster, easier to use, and safer than ever.

Conclusion. In 2023, the top 15 technology trends, such as AI and ML, IoT, VR and AR, Robotics and Automation, and 3D printing, are expected to have a significant impact on various industries and daily life. These technologies have the potential to revolutionize the way we work, communicate, and interact.

Community banks continued to report deposit growth in 2023, while noncommunity banks reported a decline in deposits. Community bank year-over-year deposit growth was 1 percent or $22.4 billion, and noncommunity bank deposits fell 5.6 percent or $892.8 billion year over year.

Current changing in banking related include: data and analytics, enhanced security and fraud mitigation, digital payments, cloud-based architectures and mobile apps in India. Key Words : Recent Trends of public and private bank with Financial inclusion.

Finance transformation in 2023 will be driven by a range of factors, including digitalization, data and analytics, ESG and sustainability, resilience and risk management. As we move into 2023, the finance function is undergoing significant transformation.

During the March 2023 banking crisis, company executives had to calm panicked customers, shore up liquidity and reassure investors after two other regionals failed. Key decisions during a critical seven-day window likely averted disaster.