In the rapidly evolving landscape of the banking industry, 2024 presents a variety of both challenges and opportunities that need understanding as well as a proactive response. As super-apps like WeChat and Alipay reshape the customer journey, the future of traditional banking teams is called into question.
How will this digital disruption impact recruitment strategies and the human interaction within banking that is still loved by many? Additionally, a slowing global economy raises valid concerns about the resilience of financial institutions. From navigating economic uncertainties to confronting the very real escalating threat of cyber-attacks, financial service industries find themselves at a cross-roads.
Yolk has asked our Financial Services recruitment manager, Jessica Harmer, to provide her personal insights and opinion into the future of financial teams, super apps, the key trends to look for in 2024, and the rapid need for advanced cybersecurity measures.
Super Apps: A new wave of digital disruption in banking
Are our teams going to be replaceable with platforms like WeChat and Alipay? Do your customers prefer speaking with advisers, or is the convenience to be on their phone and download an app growing too strong?
Despite the alluring digital convenience, I personally see the changes as tragic. As a consumer I prefer to speak to a person, rather than rely on live chat bots, that have a tailored answer to my question instead of a script. As a recruiter, who has seen the industry drastically change over the last few years, I can see the calibre talent that is being let go from teams. Lots of the individuals who work their way up becoming qualified in niche areas of expertise, with hard graft and commitment to their industry, are being impacted in real time.
A shifting global economy
We have seen the banks’ ability to generate income and manage costs challenged in the face of a shifting global economy. I’ve personally seen higher interest rates, reduced money supply, more assertive regulations, the impact of climate change, and geographical tensions have a direct impact on.
“Global inflation is expected to drop to 5.2% in 2024, from a high of 8.7% in 2022” research from the IMF (International Monetary Fund) has shown. “In countries such as the United States, the labour market and consumer spending are showing signs of deceleration but are still elevated, challenging the targets set by central banks.”. In fact, the IMF predicts that inflation in almost all countries will remain above target rates, so we can only hope that more economies face a brighter 2024.
With cyber attacks becoming more sophisticated and frequent, the financial services sector emerges as a prime target. Whilst our financial service sector will have to continue to remain vigilant, investment in advanced cybersecurity and safeguarding measures is becoming even more prevalent. Employers are urged to be more proactive in securing talent for the cybersecurity teams, to secure the right people I would advise reaching out to a specialist recruiter within this field to find the perfect team sooner rather than later. These are skills that I can only see as being in higher demand as the year goes on.
Despite the challenges, the future of the financial services sector holds promise and excitement for many, offering growth opportunities and innovation as businesses continue to adapt to emerging trends. Remaining aware of developments in super apps, economic shifts, and cyber security will be key to navigating the evolving landscape successfully.
If your financial service organisation is looking to hire the right team, or you’re a professional looking to take the next step in your financial career, please reach out to Jessica.
Manager | Financial Services recruitment