Financial Services (FS) firms have been dealing with challenging operating conditions in recent years, and these conditions are expected to persist in 2024. Despite a cooling inflation and slower interest rate increases, they continue to impact economic activity. Significant economic uncertainty and heightened financial and nonfinancial risks remain. FS executives will need to focus on navigating these challenges in the short term, while also addressing medium-term structural changes driven by geopolitics, sustainability, and technological innovation, which will remain key priorities for Boards and Senior Executives.

In 2024, Artificial Intelligence (AI), retail payments and digital assets are set
to be top priorities on the EU and UK innovation policy agenda. The regulatory
changes surrounding retail payments, digital assets, and AI have created a
complex and evolving landscape for FS firms. As firms adapt to this shifting
regulatory environment and new digital financial markets, they must navigate a
range of strategic opportunities and challenges.

The European payments landscape has transformed significantly in recent years, driven by multiple factors. Amongst the most notable drivers are the changes in consumer behaviour,
as they moved from cash transactions – causing their decline in regions such as the Nordics, which are highly digitised – to a more prevalent usage of cards and digital payment methods. With this came a rise in ecommerce, creating the opportunity for the emergence of new players and services, especially those such as digital wallets and contactless payments – all of which led to increased regulatory oversight. This document seeks to offer a better understanding of the multifaceted payments industry, providing a comprehensive overview of the ecosystem, along with a regional breakdown, highlighting specifics of each country and their domestic payment representatives.

Increased investment in Generative AI has escalated expectations—and exposed challenges across scaling, value measurement, data, and governance. Find out how organizations are navigating each one and learn where to focus your next steps.

Artificial Intelligence (AI) is not new to the banking and capital markets (B&CM) sector. It has been in production for years in specific functions, including algorithmic trading and trade surveillance and it is fair to assume that AI will be the single biggest controllable opportunity for players to improve their competitiveness. This report highlights the impact and role of AI in banking and capital markets, while suggesting key considerations for safe and effective execution. It also talks about the benefits and limitations of AI and how it will continue to evolve in the coming future, bringing in a wave of new winners.