The widespread lockdowns that occurred in the midst of the 2020-21 pandemic pushed the transition to Technology Trends in Banking forward. Although initially hesitant, consumers have rapidly shifted to using mobile app-based digital payments. For instance, in Q3 of 2020, there was a 6% YoY rise in the number of Chase customers using the bank’s digital products. The opposite is true for their mobile app downloads, which climbed by 10% year over year. (There were 55 million clients who were actively engaged in digital activities and 40 million who used mobile applications.
Without a question, the previous two years have pushed banks to prioritize digitalization and customer-centricity. The standard that COVID-19 has established for the future of Technology Trends in Banking trends is very high. In the wake of the COVID pandemic, a new generation of consumers has emerged. Since the epidemic broke out, 75% of consumers have reportedly explored new products, according to a survey by McKinsey. About 60% of these people are predicted to incorporate new brands and retailers into their habits after the epidemic.
Customers nowadays want firms to show them compassion, loyalty, and emotional connection. The vast majority of customers feel it is time for companies to reevaluate their methods of operation and social impact. Therefore, banks will need to broaden their perspectives and provide an emotional link to the digital experience. As an example, here are 10 potential developments in the world of Technology Trends in Banking that might occur in the year 2023.
Here are 10 Technology Trends in Banking in 2023;
1. Increasing Digitalization in All Sectors of Service Delivery
Although they provide a wide variety of Technology Trends in Banking services, traditional banks are ill-prepared for the digital age. The lockout has brought into sharp focus the critical importance of financial sector digitalization. The epidemic revealed the unreadiness and inefficiency of financial institutions worldwide, despite their progressive use of computerized systems.
Customers, for instance, faced the risk of exposing themselves to germs and other health hazards by going to a physical bank location to complete processes like Know Your Customer checks or loan applications. Although it would have been possible, banks did not embrace or make good use of the technology to ensure remote service to consumers.
It opened the door for fintech businesses to fill the void. The Technology Trends in Banking industry should learn from this. Growing their digital product lines is crucial if they want to provide better service to their customers.
2. Building a culture that puts the consumer first
To keep up with their customers’ ever-shifting tastes, digital-first businesses may easily pivot on a dime. They are able to do away with outmoded procedures, adopt cutting-edge innovation, and tailor their offerings to specific markets. Successful companies today recognize the importance of cultivating a positive company culture.
If an organization does not have a customer-centric perspective, then even the most well-planned digital transformation will fail. Consider that 79 percent of US consumers are drawn to businesses that demonstrate an awareness of and concern for them, while 89 percent want to do business with only the most innovative and forward-thinking companies.
Because of this, it’s more important than ever to design a digital experience around the customer’s needs. In digital-first businesses, its adoption is rather simple. To succeed, you need to exercise some careful forethought. The organization as a whole has to be actively looking for and implementing ways to address consumer concerns. Although it may be difficult for traditional banks to make such rapid changes, customer focus should be a top priority throughout the digital transition.
3. In order to fill in the blanks
Both the old and the new Technology Trends in Banking systems have their flaws, and they may leave customers with unrealistic expectations. If the price gap is too great, consumers are likely to abandon the brand completely. It was difficult for clients to transfer banks a few decades ago when there were only a small number of financial institutions to choose from. Customers now have more options than ever before when it comes to choosing a bank to meet their financial requirements thanks to advancements in digital technology. By 2023, financial institutions will need to have filled these voids if they are to thrive.
4. The Key to Inclusive and Sustainable Technology Trends in Banking
Customers have higher standards for their favorite brands than ever before. For instance, support for organizations that prioritize societal and environmental well-being is high among consumers. People are generous when they believe in an organization’s mission. Financial institutions have a unique opportunity to assist their clients in making a good environmental effect.
Because of this, they will be able to differentiate themselves from the rest of the market. The green fintech effort, which brings together financial technology and climate technology, is one such example. Financial innovations like Bunq and Tomorrow have the potential to make Technology Trends in Banking more long-term. Bionic is one such platform that facilitates digital payment options for SMEs in Africa.
5. Computer-Generated Intelligence
Banks need to find viable use cases for smart technologies and AI as consumer acceptance of these advances increases. Starting off isn’t tech-driven; taking a page from Bank of America’s Erica and attempting to replicate their method will put you far behind (and broke). Rather, you should begin by pinpointing exactly what it is that is bothering you.
There are many problems that banks face, and AI is helping them with everything from risk management and credit card fraud detection to cybersecurity and new product creation to customer service and client acquisition, and employee retention. If your financial institution is just getting started with AI, Phase2 is happy to help you come up with solutions to any of the problems listed above.
The use of AI in the consumer financial sector is growing. The introduction of Robo-advisors, round-the-clock service, intelligent notifications, and NLP-powered text/SMS services are all game-changers.
6. Putting Individuality on an Equal Footing
Though customization has been around for a while, by 2023 it will be assumed rather than chosen. Companies are going above and beyond customization in their efforts to offer goods and services to customers by employing artificial intelligence and algorithms to anticipate those consumers’ wants and requirements.
It goes without saying that providing your clientele with the resources they need to interact with your bank is crucial. Whether they are a consumer of Technology Trends in Banking, the customer making a payment, business owners reviewing their company’s finances, or high net-worth private banking clients, all three types of customers want to do business in a single, highly customized setting.
7. Consolidating and Realizing Information
In 2022, many financial institutions still lack access to consolidated information on their own customers. From our discussions with regional bank CEOs, we know that if they had a bird’s eye perspective of all they had right under their noses, they might easily see growth opportunities greater than 5x. Instead of focusing on Technology Trends in Banking to acquire new customers, banks should concentrate on maximizing the profits from their existing ones by using customer data to offer the kind of service and guidance that existing customers really value.
8. Institutional Banking’s Warm Reception of FinTech Providers
Banks have always looked down on fintech firms as competitors. Following the COVID scare, it seems that banks and fintech firms have agreed to put aside their differences and work together.
9. Improved Digital Currency Technology.
The popularity of CBDC trials is growing as it becomes clear that cryptocurrencies are here to stay Technology Trends in Banking.
We’re on the lookout for real-world applications that demonstrate tangible financial value.
10. Optimally efficient processes aim toward zero errors.
In the financial sector, artificial intelligence and machine learning have already surpassed human abilities. With this technology in place, it will be possible to run waste-free businesses in Technology Trends in Banking.
Every company remembered why it existed and what services they provide as a result of the epidemic. Customers have high expectations that their financial institutions would have their backs, grasp their unique situations, and provide proactive assistance. The transition to digital, which began long before the epidemic, has abruptly accelerated.
As a result, financial institutions and their associated brands may reevaluate their goals, adjust their mission statements, and improve the individualization, compassion, and understanding of their digital banking services are also part of Technology Trends in Banking.