The financial services industry has had a turbulent few years. The evolving technology landscape, the ongoing Covid-19 pandemic, and a new generation of agile companies have disrupted traditional business models for many of them. learn Top 5 Biggest Financial Services Tech Trends In 2022.
Those who adapt to and thrive in this changing environment will be the ones who will flourish more in the coming years.
The ever-growing number of customers who expect to access services instantly, anywhere, through their smartphones, along with the pandemic, are also significant factors contributing to these trends. Due to our increasingly digital and always-online lifestyles, the amount of data we generate increases exponentially.
In the coming months, we’ll look at some of the key trends affecting our industry, from the giant incumbents to the most agile startups.
Mobile banking
66% of the 1.7 billion unbanked people own mobile phones today, and over six billion mobile phones are available worldwide. Therefore, banks and other financial services are interested in using these devices to put their services into customers’ hands (literally).
Learn | How to do a reverse image search on your phone
Cloud banking
The cloud was already being embraced heavily by banks and financial services firms when the covid epidemic struck, but the pandemic accelerated the transfer to the cloud. The main reason for this was its capabilities of scalability at a time when customers were increasingly requesting digital services. Other benefits include security and reliability. The cloud enables more accessible and cheaper projects based on other breakthroughs in this list, such as mobile, blockchain, and artificial intelligence (AI).
Machine learning and artificial intelligence
It was also among the earliest early adopters of AI in the financial services industry. Its role in automating repetitive processes, assessing risks, and preventing fraud has been well established. Covid-19 led to quite a few of us changing the way we bank during the pandemic. Thus, we will be able to do more as we move towards 2022 if we understand and respond to changing customer behavior.
Blockchain
It is just a database with a few unique features; firstly, it is distributed, which means it is stored across multiple computers without anyone having sole control of it. Then, they are encrypted, meaning just people with the cryptographic keys are able toA third characteristic of them is that they are governed by consensus, which means that all involved parties must approve any changes to the data. Change them or update them can do so.
Using technology to increase customer satisfaction
Companies in the financial services industry have successfully used all of the trends listed above to streamline and automate back-office functions such as transaction processing and fraud detection. These companies can deploy these technologies to solve problems associated with their most valuable assets – their customers – now that they are comfortable with them.
