Banks’ lending profits are being squeezed by high interest rates, and regulators are cracking down on “junk fees” and eating into long-standing revenue sources. As banks seek alternative revenue streams and cost efficiency, they’ll have to navigate regulatory pushback and reputational risks.

Key Question: What are the biggest emerging trends the banking industry should start preparing for in H2 2024 to future-proof their businesses?

Key Stat: Banks partnered with at least one fintech are a growing target for negative regulatory attention. In Q1 2024, 35.3% of partner banks got a formal enforcement action, up from just 10.0% the year prior, per Klaros Group. This illustrates the challenge banks face in keeping their banking as a service (BaaS) operations compliant.