Retail banking trends to look out for in 2022
Banking Industry CIO Insights | Saturday 03 September 2022
Financial institutions need to develop innovative business strategies, implement cutting-edge technology solutions, and focus on customer needs.
FREMONT, Calif.: Although the challenges are associated with the growing popularity of digital banking services, the growing emphasis on innovation, the introduction of advanced technologies and the rapid evolution of the sector’s ecosystem, these developments present also many opportunities for the banking sector. The most advanced technology can be used in many different ways, from customer support to launching brand new products and services. Artificial intelligence (AI), cloud, robotics, application programming interfaces (APIs) and cybersecurity are all technologies that have benefited the financial sector.
Most banks haven’t moved their critical systems to the cloud, and banks need to improve their speed and scalability. Financial organizations should embrace cloud computing technologies. The bank’s top cloud workloads would improve customer insights, innovation, efficiency, agility, and threats to security and business continuity. The outdated technology of most financial institutions disappoints customers. It’s not easy to update, expensive to maintain, and doesn’t work well. Moving to the cloud is the best flexible choice for banks. Smaller banks can use this technology to compete with larger ones.
Intelligent Process Automation (IPA)
The API includes cognitive automation, computer vision, machine learning, and robotic process automation. Most banks struggle to implement intelligent automation despite knowing its benefits. Start small with IPA and focus on the value each process will receive when integrated into many financial systems. Without a computerized back office, customer service can suffer. Automating the following processes will transform the way customers experience their bank.
Integrated finance integrates financial services with a non-financial function. For example, Uber Eats is coupled with payroll automation software, allowing customers to make integrated payments. The integrated bank connects financial services to consumers. It streamlines access to financial services. Businesses of all sizes are launching integrated financial services for individuals and businesses. Most banks see this as an opportunity rather than a threat to existing banking rules.
Banking as a service (BaaS) approach
Banking-as-a-service provides end-to-end online financial services. BaaS integrates digital banking services into non-banking products. An e-commerce website can offer loan payment services, mobile payment cards, debit cards, etc. without a banking license, and banks can increase their revenue by adopting BaaS. BaaS helps traditional banks create new revenue models. These models enable banks to market their capabilities, data and infrastructure.
In Banking 4.0, financial organizations must provide contextual and lifestyle banking experiences to customers. Banks need to use data to create customer experiences. Banks have tons of data but can only be used as part of the value chain. The pandemic has made customers more digital and connected. This means banks need to personalize consumer experiences. Focusing on customer experience requires employing multiple technologies and being adaptable. Banks need to simplify and update their technology stacks using microservices, lightweight and responsive systems, analytics, AI, machine learning, and more.