CONTEMPORARY ISSUES
IN MANAGEMENT
, TABLE OF CONTENTS
Introduction 3
Technology enablers and innovations 5
• AI/ML 5
• Blockchain 6
• Cloud Computing 7
➢ Limitations 8
Why Banks Adopt these Technologies 8
3 Lenses 8
• Consumption 8
• Enterprise 10
• Work 10
My Views 11
Conclusion 12
References 13
Horizon Scanning Tracker 18
, BANKING AND FINANCE
Introduction
Horizon scanning is a systematic and future-oriented process aimed at identifying emerging
trends, risks, and opportunities across various sectors. By examining early indicators from
diverse information sources, this approach supports strategic planning and policymaking,
helping organisations and decision-makers anticipate changes and recognise potential
challenges (Hines et al., 2019). This report uses horizon scanning to explore the trends,
technologies, and challenges transforming the banking and finance industry, with the goal of
providing actionable insights for industry adaptation and innovation. This research is also
supported by a Horizon Scanning Tracker included in the appendix, documenting sources.
The banking and finance industry is a vital component of the global economy,
contributing approximately 31% to global GDP. In 2023, the industry generated
about $7 trillion in revenue and intermediated $410 trillion in assets as shown in Fig. 1
(McKinsey & Company, 2024). Global banking institutions play a vital role in driving
international trade by facilitating seamless cross-border transactions for both individuals and
businesses. By providing critical financial services like trade financing and currency
management, these banks act as the backbone of international trade, fostering economic
growth and promoting international cooperation (EQIbank, 2024). As of 2024, there are
approximately 10,153 commercial banks operating globally, with significant concentrations
in North America, North Asia, and Europe (IBISWorld, 2024). The industry employs over 7
million professionals across the globe, highlighting its critical role in global employment
(Garcia, 2024). A large proportion of these jobs are concentrated in key hubs such as the
United States, United Kingdom and China (Investopedia, 2022). Key players, such as
JPMorgan Chase, Bank of America, and ICBC, dominate the market due to their extensive
networks and innovative offerings (Forbes, 2024). The financial services market is projected
to expand significantly, reaching $33.54 trillion by 2024, reflecting an annual growth rate of
7.7% (Ross, 2024).
Despite its growth, the industry faces a key challenge of FinTech companies like Ant Group,
Stripe, and Revolut (Rodeck, 2024). The FinTech market is expected to surpass $400 billion
by 2027, growing at an annual rate of 25.18% as shown in Fig. 2 (Damen, 2021). Traditional
banks often struggle with outdated systems, limiting their ability to provide user-friendly
digital experiences. The need for personalised services further pressures banks to leverage
data science and AI. However, gaps in expertise and strategic readiness hinder their progress.
Consequently, partnerships with FinTech firms are emerging as a vital strategy to remain
competitive (Gruca, 2023).
