Following our interview with Amdocs’ SVP and Head of Financial Services North America, Zur Yahalom at Money20/20 USA, we get his thoughts on key areas for growth in financial services this year, with a focus on Gen AI, real-time payment (RTP), credit unions and family banking.
How will a focus on customer experience expand into family banking?
In 2024, the demand for improved customer experience in family banking will firmly take hold as banks navigate the growing demands of multi-generational households.
As the Baby Boomer generation ages (20% of the US population), Millennials begin caretaking their elderly family members (an estimated 10 million in the US) and Gen Z enters the banking world in a bigger way.
Banks that can create and tailor products for households that have a wide range of needs - from planning for healthcare costs to first checking accounts, to saving for college, and on - will be poised for success.
Is 2024 the year of Gen AI application?
If 2023 was the year of Gen AI hype, 2024 is the year of realisation for financial institutions - what can and cannot be done with Gen AI in a safe way that meets and can be flexible within ongoing regulatory discussions and changes.
There are incredible use cases for Gen AI on both the back and front end of banking. Banking will be slower to adopt than other industries as it’s highly regulated and customer trust is critical, but 2024 will be the year we see many banks exploring these applications more deeply and developing real solutions for customers.
What’s the play for credit unions this year?
In 2024, credit unions will continue to look for new ways to attract customers. We’ve already seen consolidation play a key role here, and the year to come shows no signs of slowing down.
As these institutions seek effective ways to compete with larger financial firms, consolidation will enable them to integrate powerful technology capabilities and reach more customers along the way.
How significant will RTP growth be in 2024?
Not too long ago banks would never have considered moving to the cloud, but we are now seeing a major shift in this direction for real-time payments and can expect to see this continue into 2024 and beyond.
However, banks will need to ensure they work with leading tech partners to help them along their cloud journey to launch applications and properly address ongoing regulation.
By building a robust platform, banks will be able to advance with real-time processing and cross-line-of-business data intelligence.