The banking industry has been changing rapidly for the last couple of years. With digital transformation becoming the new norm and the rise of the fintech industry, businesses in the banking sector are seeing more changes than ever. From COVID-19 to changes in customer expectations, habits, and behaviors- it's clear new trends are emerging as we speak.
To help you board that train ASAP, and stay up-to-date with the latest in banking, we’ve selected the top trends to watch out for in 2023. Let’s break them down together.
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Shifting to Digital Channels
Everything we do today is becoming more and more digital to please the needs of the new generation of customers. Today's customers want things to be done quickly and conveniently, especially when it comes to managing their finances.
This is why the entire banking industry is undergoing a serious digital transformation. That includes:
- mobile payment
- peer-to-peer lending
- robo-advisory
- personalized services
- services to underserved communities
This leaves no other option for businesses in the banking industry than to join them and start collaborating with them. They're working together on offering specific fintech products or services through traditional banking channels, which is turning out to be a winning combination.
Using Artificial Intelligence (AI)
Artificial Intelligence (AI) has gained serious momentum and has become one of the leading changes in many industries, including banking. Businesses are finding different ways to use the power of AI in hundreds of ways.
In banking, there are several leading sectors in which AI plays an important role. That includes:
- fraud detection
- customer service
- automation
Simply put, AI is used to analyze millions of data in order to find loopholes, anomalies, or strange activity and thus detect potential fraud.
Next, the use of chatbots is helping banks provide brilliant customer service, anytime and anywhere.
Finally, AI is used to automate and eliminate human work on repetitive tasks such as data entry. Instead, AI does it for you and frees up the time for your workforce to focus on something else.
Improving Cybersecurity
As technology is advancing rapidly, so are the cybersecurity threats that are a major red flag for the banking industry. Businesses need to adapt to the latest types of threats that are occurring and learn how to protect their clients.
Currently, businesses are working on:
- building a zero-trust architecture for their clients
- adopting cloud security tools to protect data stored there
- using biometrics for authentication
- investing in cyber insurance
All of this is necessary to keep the clients satisfied and make sure their data, personal information, assets, and finances are fully protected.
Final Thoughts
The banking industry is different from what we knew it a couple of years ago. In the next several years, it’s expected to change even more drastically and thus force businesses to change and adapt.
We’ve introduced you to some of the most important trends and predictions for the banking industry. Hopefully, this helps you set your priorities for the upcoming period and reshape your business if needed.