2024 view: Winning in tomorrow's world with today´s lessons

As 2024 approaches, ECS Fin has compiled insights and ideas from thought leaders and experts, providing a glimpse into the evolving landscape of the financial services industry.
The sector is undergoing technological turbulence, marked by the transition to cloud-native applications, heightened concerns about fraud and cyber risks, the widespread adoption of ISO20022 messages, and a blurring of industry lines exemplified by API-enabled ecosystems. In light of these changes, financial services leaders will need to cultivate increased agility to navigate these challenges effectively.

Continued emphasis on Cloud-native applications

We noted that more financial institutions and banks are recognizing the benefits of cloud-native applications. Cloud-native represents a dynamic approach to developing and running applications, harnessing the benefits of a cloud computing delivery model while remaining adaptable to any platform. Cloud-native technologies empower organizations to build, operate, and scale applications within versatile environments, including hybrid, private, or public clouds. Cloud-native applications exhibit salient features such as:

Streamlined Automation and Scalability:

The process involves automated tasks and scalability.

API Integration:

Support for various interfaces and API integration.

Containerization and Serverless Deployment:

Applications are packaged in containers and can be deployed in serverless environments.

Microservices and Cloud Architectural Patterns:

Microservices are integrated into cloud architectural patterns.

ISO20022 messages

Processes and value chains in the financial service industry often encompass various business sectors and geographical regions. However, the prevalence of various messaging standards in the industry challenges the seamless automation of these end-to-end chains. Two major barriers obstruct a shared understanding among the individuals and systems involved in these processes: the divergence in syntaxes (structure) and semantics (meaning).
Excitingly, we are on the brink of a new chapter in the community’s adoption journey, propelling us toward the full embrace of ISO 20022 and its wealth of structured data. This marks a momentous milestone for the payments industry, inaugurating a coexistence period until November 2025. Both MT and ISO 20022 messages will be supported during this transitional phase, offering financial institutions the flexibility to migrate to the new standard at their own pace. It’s not just a shift but an evolution, promising a more streamlined and interconnected future for financial services.

Why Choose ECS Fin?

Our IMS ISO 20022 solution is poised to provide not only compliance but also unlock revenue-generating opportunities by embracing the new data insights and elevated levels of automation that accompany this transition.

API-Focused Ecosystems

The banking landscape is transforming through the widespread use of Application Programming Interfaces (APIs). Banks and corporations embrace openness by making their systems and data accessible through APIs, allowing businesses to craft personalized financial solutions for their customers. This shift enables companies to provide a variety of financial services directly through their applications, elevating customer experiences and fostering loyalty.
We emphasis on API-centric ecosystems to build collaborations between banks and startups, fuelling innovation in the financial industry. This approach allows banks as well as FI’s to broaden their services without extensive in-house development, resulting in faster time-to-market and reduced costs. For 2024, our digital banking solutions are ready to become more accessible, tailored, and efficient to create a dynamic, customer-centric financial landscape, empowering consumers and businesses alike.

Security & Risk Management Services

The continuous embrace of cloud technology, an ongoing shift to hybrid work models, the Swift rise of generative AI (GenAI), and the ever-evolving regulatory landscape are compelling security and risk management (SRM) leaders to elevate their spending in these domains. Simultaneously, there is a strategic focus on adopting technical security capabilities that offer enhanced visibility and responsiveness across the entire digital ecosystem of organizations. We aim to instil agility in the security function without compromising on the paramount aspect of security.
Projections for 2024 indicate that spending on data privacy and cloud security will experience substantial growth, with each segment expected to increase by more than 24% year-over-year. Privacy retains its position as a foremost organizational concern, driven by the continuous emergence of regulations impacting the processing of personal data, especially in the context of AI usage. Looking ahead, Gartner foresees that by 2025, 75% of the global population will be protected by modern privacy regulations.

Takeaways:

In conclusion, while financial industry professionals must maintain a laser focus on current challenges, it’s equally important to lift their gaze beyond the immediate concerns. By scanning the horizon, organizations can better prepare for what lies ahead and understand the potential impacts on their strategies in the coming years. Consider these predictions as a signal flare illuminating emerging trends. These insights serve as a valuable guide for constructing an effective and sustainable ecosystem. Balancing the urgency of today’s security concerns with a forward-looking perspective is key to navigating the evolving landscape of the financial industry in 2024 and beyond. ECS Fin is ready to drive your success for these key trends. Let’s grow together.