The last two years have been a decisive moment for banks. The global pandemic had a significant impact on the acceleration of digital transformation.
Organizations that decide to speed up changes are ahead of competitors now. However, there is still time to catch up. What is the main focus in the banking industry now?
At FINANTEQ, we can see five main directions that will shape the market in the upcoming future.
Video banking – implement and seize the chance to attract clients
Today, creating new contact channels is a key to attracting and attaching the bank’s customers to its services.
Banks should meet customers in the digital channels they already frequently use and keep up with their’ behavior changes. We can observe the significant shift in the way customers want to bank today. According to Deloitte, the number of first-time users of different online banking services doubled last year compared to 2020.
Remote access channels are growing in strength but are still not as effective as brick and mortar branches. The turning point, however, will be the combination of a stationary and remote branch that enables offline-like experiences.
Our response to current market needs is the Pocket Branch – a remote channel for banks.
How to implement a virtual branch into existing web and mobile banking most effectively?
You will learn it from our e-book “Pocket Branch. Replace a bank branch with a digital solution.”
M-commerce – a must-have in every mobile banking app
All know, not everyone implemented yet. According to Business Insider Intelligence, m-commerce will be almost half of the e-commerce market by 2024 (reaching a value of approx. $620.97 billion).
That is another area for banks to target.
When exploring new revenue streams, banks that don’t already offer m-commerce services should certainly consider it.
As the applications market is saturated, it is an opportunity for banks to extend the scope of their services and tie bonds with their customers.
Bringing together the services and products of multiple merchants is a simple way to create a super-application that addresses all consumer needs. It results in the more frequent use of the application. It develops customers loyalty.
Artificial Intelligence – technology to deploy at scale
According to Deloitte’s Study, “Artificial Intelligence: Transforming the future of banking.” more than 86% of financial institutions’ IT leaders claim it is strategically critical or very important to implement AI-based solutions.
First of all, implementing Al solutions increases revenue, reduces costs, and better adjusts the offer to the client’s profile.
Secondly, the usage of AI-supported technology significantly improves customer experience.
Software based on artificial intelligence (such as OCRs) will be continuously deployed in banks.
Certainly, this trend will stay with us for a long time.
No code platforms – solutions empowering banking industry development
The no-code/ low-code trend is with us for a while. It is due to the huge needs in application development, with the shortest possible time-to-market, cost-effective, and high quality.
For financial institutions, the above factors determine their competitiveness.
The present situation in the IT job market requires searching for new ways of software development.
“Today the development of applications where it is difficult to find developers is a challenging task. Gartner and many other large analytics companies say that it will change towards no/low-code solutions. And we also perceive it.” – Says Andrzej Sierpiński, Managing Director, Finanteq.
No-code/low-code are a great approach to accelerate the development of the application, introduce new services, conduct market research, and more.
However, it is important to choose solutions dedicated to the banking industry.
Will no-code/low-code platforms replace classic software development? Definitely no (anytime soon)! But this is a really strong trend in programming that banks should take advantage of.
Wearables – the market is booming, but standalone banking apps are still a niche
Last but not least: smartwatch banking. Wearables are experiencing a revival. It is especially evident in the increase in sales and usage of smartwatches. According to CSS Insights, wearable device sales were expected to reach 230 million devices in 2021 and are predicted to reach 380 million in 2025.
Studies show that wearables still are mainly used as health trackers. However, we predict that the scope of their functionality will increase.
Simply banking features and standalone applications are going to be a standard in all smartwatches.
To be more competitive, banks need to introduce new functionalities that allow them to keep their current clients and attract new ones.
That is why banks should consider adding smartwatch banking in their roadmaps for upcoming years. To ease the implementation of such a solution, at FINANTEQ, we have prepared a dedicated SmartWatch Smarter Kit.
Also, check our article Smartwatch Banking – Why should Banks go for it?
Fintechs and banks marriage – happily ever after
To sum up, the World is changing. Banks clients’ habits are changing. The way institutions buy or produce software is changing too. In such a dynamic changing environment it is crucial to follow trends or even stay ahead of them.
In a nutshell, the top banking trends for 2022 are:
- Video banking,
- Artificial Intelligence,
- Smartwatch banking.
What is the best way to incorporate it?
Find a reliable partner for long-term cooperation.
An unwritten trend is the intensification of cooperation between Banks and Fintechs. The main drivers to cooperate with Fintechs are to enable taking advantage of their technological advancements and huge savings compared to in-house software development.