Finastra’s Financial Services: State of the Nation Survey 2023 found that decision-makers in financial institutions globally are excited about the opportunities brought forth by the current fast tech and cultural change within the industry, with approximately nine in ten (87%) personally excited about the pace, 83% about the opportunities for FIs, and 81% for the wider financial services sector.
Per the survey’s findings, FIs are quickly looking into the benefits of AI, with the deployment of AI and improvements in AI capabilities showcasing notable growth YoY. Worldwide, 37% of respondents confirmed that their FI had improved or deployed AI tech in the past 12 months, increasing from 30% in 2022, with a noticeable growth in generative AI. Over four-fifths (83%) of decision-makers said their institution is interested in the tech, with 26% having incorporated gen AI in some form, and a mere 6% of global respondents stating that their FI is not interested in adopting it.
Gen AI is perceived as a key means to address growing customer expectations for tailored, personalised services, with 32% of those interested confirming they are going to use it in this manner. When inquired about specific business areas, the most common generative AI use case is for collecting, processing, and analysing data for ESG criteria classifications and decision-making, together with automating, manual or repetitive tasks, collecting, processing, and analysing data for KYC/AML purposes, and bettering risk management and decision-making processes.
Increased uptake of BaaS. 48% of FIs surveyed either deployed or improved their BaaS capabilities in the last year, an increase from 35% in 2022. Global use cases include BNPL schemes, embedded lending, and embedded cross-border payments.
Optimistic outlook for tech investment despite current economic constraints. Although 78% confirmed the current economic climate halted their investment in tech, 69% expect to resume in full before the end of H1 2024.
Agreement that Open Finance is making financial services more collaborative. Most FIs (85%) consider Open Finance positively impacting the industry.
FIs are not turning inwards during challenging economic conditions. Decision-makers still focus on maintaining a strong commitment to their communities, with 86% believing financial services and the banking sector to be more than just finance and responsible for supporting the communities they serve.
When commenting on the findings, Finastra officials stated that the research showcases investment in AI, BaaS, and embedded finance as key priorities for financial organisations, especially as they look to further improve and personalise the customer experience. Per their statement, the company shares the industry’s ongoing commitment to ESG initiatives, collaboration around Open Finance, and excitement in leveraging advanced tech such as AI to help deliver on the opportunities ahead.
Per the announcement information, conducted from August to September 2023, the research encompasses opinions from 956 professionals at FIs and banks across France, Germany, Hong Kong, Singapore, Saudi Arabia, the UAE, the UK, the US, and Vietnam.
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