This report identifies key demand-side trends in the financial services space that can help enterprises fine-tune their digital strategies. It also provides an overview of enterprise challenges in the financial services space based on Avasant’s assessment.

Why read this Market Insights?

Despite a challenging business environment, financial services firms are investing in digital technologies to improve cost efficiency and capabilities. Digital assets have become an increasingly popular alternative investment avenue amongst the customers of private and wealth managers. Financial services firms are also allocating significant resources to cybersecurity measures due to growing cyber threats. Stringent financial regulations mandate ESG investment scrutiny to avoid greenwashing of the tagged investments. To address these issues, financial institutions are leveraging digital technologies to optimize operations, deliver efficient investment services, and enhance customer experience while mitigating risks.

The Financial Services Digital Services 2023–2024 Market Insights™ aids financial services enterprises in identifying important market trends and challenges for any digital project that they take part in.

Methodology

The industry insights presented in this report are based on our ongoing interactions with enterprise CXOs and other key executives; targeted discussions with service providers, subject matter experts, and Avasant Fellows; analyst insights from primary and secondary research; and lessons learned from consulting engagements.

Table of contents

About the report (Page 3)

Executive summary (Pages 4–7)

• • Defining financial services scope
  • Key drivers and enterprise response
  • Avasant recognizes 21 top-tier providers supporting digital services for financial services enterprises

Demand-side trends (Pages 8–13)

• • Rising rates and stress on US SME banks are driving large banks to innovate and offer better investments and customer experience.​
  • Amid shrinking revenues due to a slowdown in IPOs and deals, investment banks are using digital technologies to cut costs. ​
  • Digital assets have become a popular investment option due to their potential for high returns and portfolio diversification​.
  • Digitalization and hybrid work environments have increased cyber vulnerabilities in financial services firms.
  • Financial services firms are leveraging digital technologies to enhance ESG reporting and combat greenwashing activities.

Key contacts (Page 14)

Read the Research Byte based on this report.

Please refer to Avasant’s Financial Services Digital Services 2023-2024 RadarView™ for detailed insights on the service providers and supply-side trends.