In this age of increased digitalisation, where is the financial services industry headed to? What’s going to be the future of the banks? What will be the implications for fintechs or techfins? Is there any direction that the market will take to evolve? As the way things are progressing, there are three trends that can be predicted for the banking industry, which will have a profound impact on us all.
As the way things are going, individuals and companies will be in a position to demand more improved products and services, and this will lead the financial institutions to tap into digital technologies leading to huge volumes of data in a bid to anticipate customers’ mood or behaviour pattern. With increased conveniences, the customers will naturally have expectations to want more than just usual services that come with heightened levels of expediency. The world is moving towards a zone where optimised reality will be the usual expectation.
But to reach that zone, the banks must shift their emphasis from being product-led and siloed to being more agile and experiential to begin with.
Far reaching impact
Our society is such that institutions are mostly led with the moral perspective in mind. This will help people along with the communities to adapt well as per their attitudes and behaviours for an improved tomorrow. So, the customers of tomorrow will seek banks with a social purpose in mind that goes beyond the corporate social responsibility department and more into each and every facet of their respective organisations, as well as the businesses and lives of the customers.
For financial institutions, this will be a major shift from being authoritative and completely functional to something that is supportive as well as emotional. Banks will have the need to give complete focus, and also come up with solutions for people and communities at large.
A thorough and all-inclusive planning regarding the whole system driven by global demand for systems and practices will lead to protection from threats that can come and torment in future, through long-term and holistic thinking. Financial institutions, to achieve this will certainly need to work towards it for being less complex and tilting more towards being open and hence sustainable.
This is important because it is related to your ability to invite talent which will again be crucial to the bank’s long-term success. So, the big picture needs to be on focus at all times.
Greater focus to financial betterment
The focus should be to tilt towards a new and improved banking model that can cater to customers better. Rather than simply have the focus of maximising the net interest income, the highlight should be on improving customers’ financial well-being.
Every industry, every business is trying to go digital today. From systems to processes, there is an increasing demand to shift from the manual to digital. The financial industry is no exception. The digital edge will certainly add on to the conveniences and make the world of banking more hassle-free and convenient.