2024 Trends & Predictions: Digital Banking

Corporate belt-tightening and a scary economy for consumers will keep digital banking strategists keenly focused on improving access to digital customer service and building engagement and trust with financial fitness in 2024. But bankers beware: A serious new non-bank threat looms from an unexpected source.
 
Goodbye, bankers’ hours. Digital channels made it possible for on-the-go consumers to conduct their banking wherever they want. But with satisfaction with digital customer service flagging, look for more banks and credit unions to upgrade digital banking to also make it easier for customers to bank whenever it’s most convenient, too.

Economic worries drive demand for next-gen financial fitness. Faced with complex financial anxiety and decisions, consumers are looking to banks and credit unions for more than generic education and do-it-yourself tools. They need mobile-first digital guidance, handholding, and a help-me-do-it experience—and 2024 will be the year when innovative FIs begin to deliver. 

The latest non-bank peril threatens disintermediation, not just fragmentation. Employer-sponsored financial companies no longer are a benign threat. They are actively positioning themselves to not only influence financial decisions large and small but also step in front of FIs by providing advice-driven services at critical stages of life—posing a threat to FIs’ share of mind and share of wallet.
 

Companies Mentioned:

Ally, Brightside, Citi, DailyPay, Earnin, Enrich, FedNow, Glance, Glia, Gusto, KeyBank, LinkLive, M&T Bank, Nudge, PayActiv, PNC, Savology, U.S. Bank,