Finance executives unveil 3 business growth generators in the industry

Firms are embracing emerging banking models but showing reluctance towards AI adoption.

Executives expect Banking as a Service (Baas), embedded finance (76%), and green lending (81%) to provide finance firms growth and additional revenue next year.

According to Finastra, 80% of executives also agree that focusing on ESG and sustainability will be the next big disruptor in the sector. 

Whilst firms are embracing emerging banking models, they are reluctant towards AI adoption.

Data from Finastra showed that only 30% of financial institutions have improved or deployed AI technology in the last 12 months, compared to 41% in 2022.

This caution extends to generative AI. Whilst 81% of financial institutions are at least interested in the technology, only 16% have started rolling it out, the lowest proportion globally and less than half of those in Hong Kong (38%).