The Future of Financial Services: Communications Leaders Set the Agenda for the Industry in 2024

2023 was a year for the books in financial services, with the end of a historic market bull run and a precipitous drop in fintech funding. After years of investor optimism, a somber light was cast on the industry due to scandals, stumbles, and the realities of a higher-rate environment.

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But there were also promising developments: fintech companies serving the B2B market proved durable, working hard to drive efficiencies for businesses despite the tough economic environment. On a macro level, the fall of Silicon Valley Bank, the pervasive rise of AI, and the mounting influence of a new generation have opened up new opportunities to reshape financial services in the years ahead.

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At Mission North, we believe the sector’s growth in 2024 will be driven by companies enabling greater financial resilience for both businesses and consumers – from B2B propositions like spend management, embedded insurance, lending and payments, and on the consumer side, solutions focused on financial health and wealth-building will gain attention.

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To inform our point of view, we turned to trusted financial services communications leaders for their outlook on the critical factors shaping industry strategies in the year ahead. Here’s what they had to say:

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Cautious Optimism on AI

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AI was everywhere last year, and the fintech sector was no exception. Yet in financial services, we expect to see AI adoption concentrated on internal areas like risk management, compliance and underwriting decisions versus customer-facing features:

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<split-lines> “I expect to see a lot less hype around AI in 2024 and more interest in its practical applications within the financial services industry.”<split-lines>

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“I expect to see a lot less hype around AI in 2024 and more interest in its practical applications within the financial services industry. If you look at similar cycles around AI in other industries (social media, e-commerce and self-driving) there is a pretty consistent focus on initial excitement, over-optimism, and then a deeper look at reality. I expect to see the same for our industry, but I have noticed we have moved from unbounded excitement to reality pretty quickly (a good thing).” - Kelly Mayes, Senior Director of Communications & Brand at Alloy

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“The robots are not coming for our jobs, but our jobs may look different than they do today. With AI, brands have an opportunity to set themselves apart by investing in authentic content that drives connection. AI will tackle the myriad tactical details that make up a comms leader's day-to-day job while freeing us up to do what we do best - highlighting the humans that drive business and technology forward.” - Natalie Rix, Global Head of Communications at Gemini

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It’s a B2B world, but consumers still live in it

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While funding has continued to pour into B2B fintech segments, reaching consumer audiences will remain as important as ever for both B2B and consumer-focused fintech brands:

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<split-lines>"Companies need to align their values and actions with the issues that matter to their customers, such as financial inclusion, climate change, and social justice. ”<split-lines>

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“Businesses operating in the B2B sector face a growing need to craft differentiated marketing and communications strategies not just for their immediate customers, but also for their customers' end users. In 2024, I expect companies to focus on enhancing their B2B2C product and communications strategies, all geared towards delivering heightened value and facilitating the growth of their customers' own businesses.” - Stephanie Mitchell, Senior Director, Communications at AppFolio

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“U.S. consumers will enter 2024 with more than $1 trillion in outstanding credit card debt. Access to credit is essential but not all forms of credit are created equal. Consumers are increasingly seeking out more flexible and transparent payment options that provide them with greater control over managing their finances. As with any new and fast-growing industry, companies that offer pay-over-time options will need to continue educating constituents on their practices and benefits. In a world of short attention spans and word limits, comms professionals need to find creative ways to foster conversations that drive clarity and comprehension.” - Matthew Gross, Senior Director, Financial Communications at Affirm

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“Consumers are increasingly demanding that the companies they support be socially responsible. Companies need to align their values and actions with the issues that matter to their customers, such as financial inclusion, climate change, and social justice.” - Elise Brown, Chief Marketing Officer at Anthemis

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Business fundamentals will be front and center as transactions heat up

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Vanity metrics and story stocks without substance are out, solid business fundamentals are in, and companies positioning themselves for an exit will need to be prepared for a new era of scrutiny:

<split-lines>”Having crisp answers to the health of your business, its growth metrics and your capital raising/exit plans will be important.”<split-lines>

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“I expect that transactions in fintech will start to accelerate in 2024 making more external audiences curious about the space. Having crisp answers to the health of your business, its growth metrics and your capital raising/exit plans will be important.” - Raoul Bhavnani, Chief Communications Officer at Betterment

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“I expect to see more M&A in our industry in 2024, and as a result, reporters will be paying closer attention to smaller details around companies that might have otherwise gone unnoticed.” - Kelly Mayes, Senior Director of Communications & Brand at Alloy

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It’s about to get loud

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Communications professionals will need to approach 2024 with a “prepare for anything” mentality, balancing consistent, impactful messaging with utmost flexibility in the face of a rollercoaster news cycle. Companies that adopt a proactive posture on risk management will find themselves on the front foot in 2024:

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<split-lines>"We've seen how quickly the conversation can shift, and teams need to stay nimble and adjust on the fly to keep their companies relevant and a part of an ever-changing conversation.”<split-lines>

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“Last year, we saw just how quickly things can change, from the collapse of SVB to larger macroeconomic effects of global conflicts. With this, PR and comms will be bolder than ever in 2024. We've seen how quickly the conversation can shift, and teams need to stay nimble and adjust on the fly to keep their companies relevant and a part of an ever-changing conversation.” - Jordan Fellows, Senior Manager, Corporate Communications at Marqeta

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If you’d like to share your take on the future of financial services or learn more about our work in the space, please get in touch.