Facing the Future: The Top Challenges for Financial Services Companies in 2024

Published on
Jan 5, 2024
Written by
Espen Skogen
Read time
3 minutes

Market conditions are ever-changing, and for financial services companies, it can be a real challenge to keep up with market trends. The year 2024 is no exception, and companies are likely to face a number of new challenges, including changing customer behaviour, political instability, and the rise of emerging markets. As companies struggle to keep up with these changes, it is imperative to develop a proactive approach to market research and analysis, in order to anticipate and react to market conditions effectively.

Regulation is likely to be another major challenge for financial services companies in 2024. In both the US and the UK, regulators are expected to introduce a number of new regulations that will impact the industry. Compliance with these regulations can be time-consuming and costly, but it is essential to the long-term success of financial services companies. Some of the key regulations to watch out for include MiFID III, PSD3, and perhaps a refresh of GDPR. Companies that proactively monitor regulatory developments and adjust their compliance processes accordingly will be best equipped to navigate this challenge.

Recession risk is another significant risk factor for financial services companies in 2024. While recessions are a natural part of the economic cycle, they can be devastating for companies that are not adequately prepared. To mitigate this risk, companies should focus on building a robust risk management framework, including stress testing and scenario analysis. In addition, companies should develop contingency plans to manage liquidity risks and operational risks during a recession.

In conclusion, the year 2024 presents a unique set of challenges for financial services companies, ranging from market conditions to regulation, and from inflation risk to recession risk. However, by developing a proactive approach to risk management, monitoring regulatory developments, and investing in inflation-linked assets, companies can mitigate these challenges and emerge stronger than ever. As we face the uncertain future of the financial services industry, it is critical that companies take a proactive and informed approach to risk management.

For financial services companies, the future is already here. The industry has been facing its fair share of challenges, and as we look into the future, it becomes clear that the road ahead will not be smooth sailing. The year 2024 presents a unique set of challenges for the industry, including market conditions, inflation, regulation, and recession risk. As a veteran of the capital markets, I have put together this blog post to help company directors, shareholders, and investors understand what to expect in the coming year.

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