The financial industry trends have been shaped by the impact of the Covid-19 pandemic, much like everything else we know has. Similar to other industries, the pandemic has propelled the industry to finding more efficient solutions faster with the use of technology. One thing that has remained the same, is that customer demands continue to shape the trends.
#1 – Personalized Services
Customers are wanting more personalized services, including products and services tailored to their needs. Information is easily accessible for firms, and there is more available now than ever before. With the available data, it can be easy to determine which services are best for a customer.
Trust is important to customers when it comes to achieving their financial goals, and this is especially important to customers now considering the general lack of human connection many have felt due to the pandemic. Artificial Intelligence (AI) is an efficient way to remind customers they are cared for, and it can be used to suggest services and products, and create digestible analytics on the status of customer’s financial status.
Personalized marketing and the use of behavioral science technology is another way to reach customers and begin building a relationship. By presenting customized advertisements for products they are interested in, it will help them find what they need faster and create a trustworthy feeling towards the firm.
#2 – Mobile Banking
Mobile banking is in high demand due to the simplicity to take care of financial needs without having to spend time visiting a physical branch. With the uncertainty of the pandemic, this was especially important. In the past 10 years, the number of customer’s visiting bank branches has been declining, and mobile banking is used more than even digital banking now.
The revolution of mobile banking apps to offer more services than simply the ability for customers to transfer money to and from accounts or check on statements has become the most valuable part of mobile banking. Offering services such as video banking, online notary services, and more has made banking easier than ever.
#3 – Digital Banking
The impacts of the covid-19 pandemic have not ended with the new year. In fact, a recent study showed nearly half of financial employees are still expected to be working remotely, which proves digital solutions are still needed.
Traditional banking faces big competition when it comes to seamless cash flow, and customers are likely to opt for services such as PayPal or Venmo who offer instant solutions and less fees.
#4 – Internal Office Efficiency
Automation thru AI
Automating repetitive and time-consuming processes is a trend for nearly every industry. Financial firms can automate internal procedures in order to reduce human error and increase productivity at the same time.With the time you’ll save with automating processes, employees will be able to dedicate themselves more to customers, especially when sensitive or complex situations arise. Automation is one of the first steps of moving on from legacy processes, and it is clear that adopting technology is not an option for the industry anymore.
Less paper is a simple way of explaining the impact of data consolidation. By consolidating information into a central place, your business can have visibility to make strategic decisions. Eliminating paper also reduces risks from missing or hard to read information. Storing this information in a digital format and in a secure place can allow more employees to access the information at the same time without having to wait on forms or other documents.
As more of the industry moves towards data consolidation, more solutions will become available to help manage data and automatically identifying risks and strategic decisions.Solutions such as file conversion, document viewing, auto-generating contracts, and allowing customers to electronically sign documents are just a few ways fintech software can protect their businesses and customers from situations such as the pandemic.
#5 – Cloud & Virtual/Hybrid Office
The cloud has proved to be a necessity that’s valuable is undeniable in the modern workforce. The financial sector has always opposed a full migration to the cloud, predominantly because of concerns regarding compliance and cybersecurity. To yield the most success, these organizations will need to accept the solutions the cloud can offer.
Supporting customers from anywhere, collaborating on projects, and working from anywhere are a few aspects of a cloud environment that can have a lasting impact on the value of these organizations. Most industries have already adopted cloud environments and saved time and money doing so, it’s time for the financial sector to do so too.
Customer demands have shaped trends for the financial industry for a long time. The impact of the global pandemic has sped up the progress towards these trends due to the necessity of convenience and digital services. Traditional banks will need to rethink their strategies in order to remain competitive amongst mobile banking like PayPal and Venmo. Automating processes and creating internal efficiency can provide the dedicated time to your customers that they are seeking.