Banking Trends to Watch in H2 2024

AI and BaaS Pose Compliance Challenges, While FMNs and Next-Gen Branches Offer Revenue Opportunities

Report by Maria Elm  | Aug 1, 2024
Download
Report
Executive Summary
Share
Table of Contents
Executive Summary
AI is teeing up banks’ next compliance fiasco
Banks are seeking ways to keep access to BaaS revenues
FMNs are springing up as banks chase ad dollars
Banks are revamping branches to boost customer loyalty
Sources
Media Gallery
About This Report
Banks are experimenting with emerging technologies and business models to find new revenue streams. But stepping outside traditional banking molds introduces more business, reputational, and regulatory risk.
Topics
Banking
Financial Services
US
Table of Contents
Executive Summary
AI is teeing up banks’ next compliance fiasco
Banks are seeking ways to keep access to BaaS revenues
FMNs are springing up as banks chase ad dollars
Banks are revamping branches to boost customer loyalty
Sources
Media Gallery

Banks’ lending profits are being squeezed by high interest rates, and regulators are cracking down on “junk fees” and eating into long-standing revenue sources. As banks seek alternative revenue streams and cost efficiency, they’ll have to navigate regulatory pushback and reputational risks.

Key Question: What are the biggest emerging trends the banking industry should start preparing for in H2 2024 to future-proof their businesses?

Formal Enforcement Actions Directed at US Partner vs. Nonpartner Banks, Q1 2023-Q1 2024 (% of total)
E-Mail ChartDownload

Key Stat: Banks partnered with at least one fintech are a growing target for negative regulatory attention. In Q1 2024, 35.3% of partner banks got a formal enforcement action, up from just 10.0% the year prior, per Klaros Group. This illustrates the challenge banks face in keeping their banking as a service (BaaS) operations compliant.

Here’s what’s in the full report

2files

Exportable files for easy reading, analysis and sharing.

7charts

Reliable data in simple displays for presentations and quick decision making.

Table of Contents

  1. Executive Summary
  2. AI is teeing up banks’ next compliance fiasco
  3. Banks are seeking ways to keep access to BaaS revenues
  1. FMNs are springing up as banks chase ad dollars
  2. Banks are revamping branches to boost customer loyalty
  3. Sources
  1. Media Gallery

Charts in This Report

Formal Enforcement Actions Directed at US Partner vs. Nonpartner Banks, Q1 2023-Q1 2024 (% of total)Steps Companies Can Take to Build Trust in AI According to Adults Worldwide, June 2023 (% of respondents)
Top Concerns Among US Banking Executives, Q1 2024 (% of respondents)Players Ensnared in the Banking as a Service (BaaS) Crackdown
US Financial Media Network Ad Spending, 2023-2026 (billions and % of digital ad spending)Top 10 Factors That Ultimately Drive US Banking Consumers to Buy a Banking Product/Service, Oct 2023 (% of respondents)
US Banking Consumers Who Ultimately Bought a Banking Product/Service Because of the Availability of Nearby Branches, by Household Income, Oct 2023 (% of respondents)

Access All Charts and Data

Gain access to reliable data presented in clear and intelligible displays for quick understanding and decision making on the most important topics related to your industry, included at no extra cost.
Gain Access to EMARKETER →
Log in to EMARKETER
Download PDF

authors

Maria Elm

Contributors

Lauren Ashcraft
Suzy Davidkhanian
VP, Content
Sherry Fairchok
Kyndall Krist
Senior Copy Editor
Tiffani Montez
Emma Noyes
Graphic Designer, Data Visualization
Amy Rotondo
Director, US Research
Emman Velasco
Chart Editor
Julia Woolever
Director, Report Editing