It would be a lie to say that the last few years has been easy financially for many businesses. Most businesses have had to abandon their traditional methods of working because of the pandemic. However, technology has been evolving at a rapid pace which has made adapting to a new working environment easier.
The biggest driving force behind these changes in the financial services industry has been customer demands to access online services immediately. Businesses have had to rethink their long standing traditional methods and completely alter them. There is no longer time to wait to implement digital modernizations. Services, products and technologies quickly become outdated now. The new technological advancements and different market players appears to be the only way for the global economy to recover.
Technologies such as artificial intelligence, machine learning, cloud, security and block chain technologies have been emerging more and more. The main focus has been to improve customer satisfaction and experiences. There is no sign of tech in the financial services industry slowing down as we can expect robotic process automation, digital-only banking, financial inclusion and sustainable investments. Companies that provide IT Support for Financial Services have found success in prioritizing customer experience and success.
The sooner businesses realize that times have changed and things are not going back to the way they were the better for them. Financial service providers need to adopt new and innovative ways of selling their services and products. The process needs to be well planned because so many businesses have been implementing financial services online and there are a lot of security risks involved. Ransomware and fraud in the financial sector has dramatically increased in recent years which means that security also needs to be prioritized. Below are a few tech financial services trends that are going to continue to thrive in 2022.
We know that mobile devices have become capable of handling just about any service. Society is reaching a state of becoming nearly completely digital and this is evident in the fact that our mobile devices are our main interface for engaging with the digital world.
Financial institutions find it cheaper to provide their services online and they are able to provide their customers with a better user experience. 2022 will be a big year for both banks and customers as we can expect more chatbots, cardless banking and personalized communications.
There is going to an increase in the amount of banks and other financial businesses making the shift to the cloud. The pandemic was the main reason behind this shift but businesses have begun realizing that it is also for their benefit to use cloud technology. The cloud has made it easier for businesses to implement other technologies such as blockchain and artificial intelligence. Most businesses today in the financial sector have opted to go with more than one cloud service. Reason being that they help companies in the financial sector achieve their environmental, social and governance commitments.
Hyper-automation is an exciting trend for the future as it combines machine learning, AI, process mining, process automation and API integration. This is a fantastic trend for businesses who are looking to be more efficient and automate their services. AI processes are amazing for creating a more efficient environment because they can analyse data much faster than an employee would. It is also quicker to develop strategies that will work rather than testing different ones. Through the use of hyper-automation financial institutions can take better care of customer needs and increase their flexibility.
Super-apps are exactly that, superb as they bring together retail, social, financial and other needs. A super-app is an application that has been taking over the financial services industry. It is a platform where users can combine their personal and commercial life. Digital banking is becoming more complex and that requires it being introduced on broader platforms so that they can include commerce and social networks.
5.Artificial Intelligence & Machine Learning
The financial sector has been one of the first to sectors to adopt artificial intelligence. This is because it has been used for risk assessment and fraud prevention. A major concern for banks has been their competitors adopting AI technology and them falling behind the power curve. The financial services industry is predicted to be in the top three for sectors for investing in AI technology within the next 5 years. Customer satisfaction is also improved through the use of AI technology. An example of this is the bias that customer face when trying to lend money or gain funding. With AI technology the bias is removed and there is a much more level playing field.
Blockchain is one of the most talked about topics in the business world and with good reason. It has endless possibilities attached to it because it has cryptocurrency as a significant part of it. Businesses have started adopting blockchain because they benefit more from customers through decentralized transactions. Not only will businesses benefit significantly but the global economy can expect to improve drastically. There are a lot of concerns about security measures because people are not very knowledgeable on the topic. However, blockchain has proven to be very safe with transactions and these transactions are easy to track whenever you want to.
The financial services companies mainly rely on large businesses that provide oil, gas and fossil fuels. This has been a major issue for a long time that is now being taken more seriously by many companies. Financial businesses are now being held more responsible for environmental assurances because the damage to the planet is a bigger priority now. More companies have become willing to lose money if it means creating a better environmental footprint. The key is going to simply be to adopt stricter regulations and actually try to follow them instead of trying to get around it.