Happiest Minds – BFSI Global Trends, 24

The BFSI industry is experiencing several significant trends that are shaping its future. One of these trends is the growing use of Artificial Intelligence (AI) in the industry, with the AI in BFS market projected to reach $64.3 billion by 2030. This technology is expected to enhance various aspects of banking and financial services. Another important trend is the focus on Environmental, Social, and Governance (ESG) factors. A recent study by McKinsey found that companies with better ESG scores have a lower cost of capital by about 10%. This highlights the growing importance of sustainability and responsible business practices in the BFSI sector. Cybersecurity is also a major concern for the industry, with organizations adopting robust cybersecurity mesh architecture to reduce the financial impact of security incidents. According to Gartner, organizations with such architecture can expect a 90% reduction in the financial impact of individual security incidents by 2024. Hyper-personalization is becoming increasingly important in the banking experience, with over 70% of consumers believing that personalization is crucial to their banking services. Meeting customer demands for personalized experiences will be essential for the success of banks and financial institutions. The use of low-code tools for application development is also on the rise, with these tools expected to be responsible for 65% of application development by 2024. This allows for faster and more efficient development processes in the BFSI industry. Furthermore, the migration to cloud platforms is becoming more prevalent, not only for cost-saving purposes but also to eliminate the burden of maintaining on-premises infrastructure. Lastly, open banking is a growing trend, with the number of users expected to grow at an average annual rate of nearly 50% between 2020 and 2024. This trend promotes transparency, collaboration, and innovation within the industry.