With such a broad range of possibilities, financial companies find themselves in a constant challenge to stay updated and aligned with emerging trends. In a highly competitive sector, the ability to adapt and anticipate changes becomes crucial for continuous growth.
In this scenario, we highlight five essential trends that deserve full attention. Let’s explore together these paths shaping the future of the financial sector. Check it out:
Embedded Finance: The Revolution Transforming Companies into Digital Banks
Embedded Finance, or Finanzas Embutidas, represents the integration of financial products and services into the portfolio of a company that does not belong to the financial sector, allowing it to diversify offerings without deviating from its core focus. This strategy aims to provide customized banking and financial solutions to customers, addressing their needs while significantly expanding their market presence, resulting in a substantial competitive advantage.
To adopt this concept, it is essential to rely on appropriate technological solutions provided by experts in the financial sector. This enables the creation of a platform that empowers the company to operate as a complete digital bank, covering everything from account services, payments, loans to investments. Thus, the company can focus on its core business without the worry of developing financial products and services. This approach not only meets the growing market demands but also drives innovation and competitiveness in the business landscape.
Hyper-Personalization of Services/Products: Adapting to Customer Preferences in 2024
We observe a rapid transformation in how customers consume financial and payment services, driven by the combination of new technologies and regulatory advances in the country. In this context, it becomes crucial for financial companies to direct their investments toward services and products more aligned with the preferences and behaviors of customers in the coming year. Adapting to this evolution is essential to remain relevant and meet the constantly changing demands of the market.
Generative Artificial Intelligence: A Key Tool for Financial Innovation
As traditional artificial intelligence strengthens globally and contributes to innovation in the financial sector, the increasing application of Generative Artificial Intelligence promises to further drive the development of new financial services. This approach facilitates adaptation to market demands, allowing the enhancement of service offerings in banks, insurers, and fintechs. The ability to customize and optimize processes promises to provide more efficient experiences tailored to individual user needs.
However, it is crucial for institutions to focus their efforts on solving real customer problems rather than simply adopting technological solutions in isolation. In this context, Generative Artificial Intelligence can become a key tool for 2024, driving innovation in the financial sector.
Additionally, fraud prevention using artificial intelligence is increasingly in focus for financial organizations, and this will not be different in 2024. According to a global survey conducted by Nvidia, the main use cases include fraud detection in payments and transactions (31%) and prevention of money laundering (AML) and know your customer (KYC) (23%). This focus on security strengthens trust and integrity in the financial sector, highlighting the ongoing importance of artificial intelligence in market evolution.
Digital Payment Growth: The Explosion Shaping the Financial Future in Latin America
There is no doubt that digital payments are gaining more and more space throughout Latin America. As revealed by a study from McKinsey, the forecast is that the volume of digital payments in the region will reach the mark of $2.5 trillion by 2025. This rise will be even more pronounced in 2024, driven primarily by the increasing use of smartphones and the growing adoption of contactless payment solutions. The financial future of the region is clearly shaped by the digital revolution in payment methods.
Open Finance: A Journey of Progress Toward Widespread Adoption
Despite the moderate progress of Open Finance in Latin America in 2023, some countries like Chile and Brazil continue to advance in their developments. This trend is gaining strength in the region, with the increased adoption of digital banking, collaboration between fintechs and traditional banks, and the pursuit of inclusive financial services. We observe a solid trend indicating that the sector may take time, but will eventually adopt this initiative. This will result in the emergence of new financial products and services in the country, further driving the evolution of the financial landscape in Latin America.
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