auther
Vivek

May 9 · 10 min read

Top 3 Trends Shaping Banking 2022

In a survey done by Accenture, 65% of consumers said that they would prefer to manage their finances through digital devices rather than bank branches. What does this mean for the banking industry? On one hand, it means a future that's more convenient for consumers, but on the other hand.

Top 3 Trends Shaping Banking 2022

In a survey done by Accenture, 65% of consumers said that they would prefer to manage their finances through digital devices rather than bank branches.

What does this mean for the banking industry? On one hand, it means a future that's more convenient for consumers, but on the other hand, it means more work for financial institutions to stay relevant and competitive.

The banking market is set to change drastically. And these trends will shape its future. But how can you stay ahead of the game?

Well, we've researched the latest stats, consulted with analysts and executives, and combined years of experience in digital solutions for financial institutions to outline what's coming down the pipeline for digital banking in 2022.

It is estimated that the digital banking space would touch above $10 trillion by 2022. With the growing popularity of technology in our day to day life, it's only natural for people to trust technology for their banking needs.

This growth can be attributed to a shift in behavior of consumers from traditional banking to digital banking.

This blog will highlight the latest trends in digital banking and the impact on businesses.

The rise of the neo-banks and fintech.

In recent years, a new wave of banks has emerged that have been created by tech entrepreneurs with little experience in finance.

These companies are often referred to as “neo-banks” or “challenger banks”. They are challenging traditional banks by offering more personalized services at lower rates.

While they don’t have as much experience as traditional banks, they do have access to technology that makes it easier for them to price products based on a customer’s specific needs.

Neo-banks are looking to take on traditional banks by providing customers with a seamless experience using technology such as artificial intelligence (AI) and blockchain.

Meanwhile, fintech companies are changing how we interact with money by offering services such as peer-to-peer lending, payment processing and digital currency investments.

This trend has been accelerated by developments like Open Banking, which allows third parties access to customers' bank data through APIs (application programming interfaces).

The aim is to give consumers more choice when it comes to service providers, while also making life easier for them by integrating all their accounts into one place — be that a bank or fintech app

Some popular neo banks in are : List of Top 12 Neobanks in India.

Ubiquitous cloud, SaaS, APIs, data analytics and AI.

Cloud computing is at the heart of these trends. It enables banks to build new products and services faster than ever before.

Cloud also allows banks to focus on their core competencies while allowing third-party vendors to provide functionality for new use cases.

This creates a virtuous circle of innovation that increases customer satisfaction while reducing costs at the same time.

The emergence of software-as-a-service (SaaS) applications has had a similar effect by simplifying application development processes while lowering costs through economies of scale.

In addition, SaaS applications are built around common interfaces that enable customers to seamlessly move between different applications within a single vendor’s ecosystem.

For example, an investment bank might offer its clients both wealth management services as well as corporate loans

Banks have been using software as a service (SaaS) models for years now, but they've recently started embracing application programming interfaces (APIs).

These tools allow banks to connect their internal systems with third-party offerings like artificial intelligence (AI) platforms or robotic process automation software that can automate routine tasks such as loan approvals or checking account maintenance activities like

The shifting balance of power with tech giants

Banks have traditionally been at the center of the financial services ecosystem, but that's changing as technology companies are increasingly encroaching on their territory.

"The days when banks were able to dictate terms to financial institutions are over," says Peter Culley, head of retail banking at Deloitte UK. "Now it's time for them to redefine themselves and find new ways to serve customers."

The rise of fintechs has been one of the biggest factors driving this shift in power — it's estimated that over $50 billion has been invested globally into fintech startups since 2010.

And while many banks have taken steps to embrace this trend by partnering with fintechs and investing in new technologies themselves, they still face significant challenges from larger players like Google and Facebook which have vast resources at their disposal and can leverage their existing customer bases through acquisition or organic growth strategies.

So, these trends that we are seeing today may shape the future of digital banking.

Hope you found this Informative?

Recommended reading: Top 8 Trends to Witness in the Fintech Sector in 2022