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?

In today’s turbulent financial markets, the business landscape is rapidly evolving, driven by multiple factors, including the Great Wealth Transfer from older generations to younger, tech-savvy investors. This shift drives demand for smart advisory services facilitated by advanced analytics and personalized strategies. Additionally, there is a growing appetite for alternative investments and digital assets as investors diversify portfolios and new asset classes necessitate novel trade life cycles. Amid this evolution, the financial landscape is seeing a decline in M&As and initial public offerings (IPOs), focusing on reducing operational costs. Regulatory changes, such as the shift toward T+1 settlement cycles and the rise of ESG scores as an investment criterion, open new avenues as firms leverage digital technologies, including generative AI, to navigate these challenging times.

The Financial Services Digital Services 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 the scope of financial services
  • Key drivers and enterprise response
  • Avasant recognizes 24 top-tier providers supporting the financial services industry in digital transformation

Demand-side trends (Pages 8–13)

• • Growth of the mass-affluent segment and the transfer of wealth to a tech-savvy generation have necessitated smart advisory services leveraging digital technologies.​
  • Rising alternative investments and digital assets revolutionize the trade life cycle, offering new services, improved operations, and investment strategies. ​
  • M&A volatility, IPO slowdown, escalating transaction costs, and safekeeping of financial assets are putting pressure on firms to streamline operations​.
  • The wave of capital markets regulatory changes aimed at enhancing transparency, reducing risks, and improving efficiency are pushing for a renewed focus on RegTech.
  • Financial services firms are driving sustainability and unlocking new market opportunities by leveraging digital technologies.

Key contacts (Page 14)

Read the Research Byte based on this report. Please refer to Avasant’s Financial Services Digital Services 2024 RadarView™ for detailed insights on the service providers and supply-side trends.