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Accenture : Top 10 banking trends for 2024

Top 10 Trends for 2024: Banking on AI are:

  1. The rise of gen AI. Banks will benefit more from gen AI than other industries due to a potential 22-30% productivity boost and a 6% revenue increase. But for this they will need to use cloud and data effectively and rethink work and talent.
  2. Capturing the digital dividend. Banks have mastered digital servicing but struggle to converse meaningfully with customers across these channels. AI offers a huge opportunity to turn digital interactions into sales.
  3. All the risk we cannot see. In 2024, banks will face many risks: some familiar, others less predictable. We identify five that deserve special attention. Planning for the unplanned will pay dividends.
  4. A whole new way of working. Banks will need new skills, approaches and mindsets, both in IT and in every function and level. Recruitment alone can’t solve this challenge; an entirely new strategy is called for.
  5. The power of pricing. Optimized pricing can have a huge impact on banks’ performance. They are starting to combine intuition with gen AI and better data to turbo-charge scenario planning and move to personalized pricing.
  6. Time to think cloud first. Most banks’ early cloud experiences were like that of a novice driver put behind the wheel of a Ferrari: they drove it like a family sedan. Now they’re learning what cloud can really do for them.
  7. Regulation recalibrated. Banking regulation has ballooned, yet little of it addresses the reasons why banks fail. In 2024 banks, central banks and regulators will collaborate to find a better approach.
  8. From technology to engineering. A subtle change, with big implications, is emerging: the shift from a tech management to an engineering mindset. Building with technology is increasingly recognized as a C-suite imperative.
  9. The key to the core. New approaches and technologies—including the ability of gen AI to swiftly convert outdated code—are combining to finally free banks from their aging core systems.
  10. Beyond Six Sigma. Gen AI’s understanding of intuition and experience is overcoming the limitations of Six Sigma—its bias toward quantitative problems—and enabling a new approach to operational efficiency.

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