The financial services industry sees continuous changes all year round, and financial institutions need to constantly innovate to stay ahead of sector trends and emerging forces. And with 2023 fast approaching, it’s time to start thinking about the latest banking trends that could have a big impact for the next 12 months.
Digital solutions for many consumers are key when it comes to choosing their financial provider. Not only do they want easy access to accounts, but require access to faster and more secure banking on digital platforms.
As the lines between banks, credit unions, building societies and other financial services providers begin to blur, digital banking tools are an effective way of creating new opportunities. With a focus on customer experience during digital transformation an essential – many financial institutions will need to ensure that the solutions they provide meet their customer needs in terms of convenience, comfort, ease of use and engagement. And by taking into consideration their audience’s needs, advanced analytics coupled with positive customer experience will allow banks, credit unions and building societies to understand their customers to anticipate needs and boost offerings. It’s safe to say that digital banking is a huge opportunity for growth. And financial services providers can’t afford to be left behind in 2023.
A new wave of competition
Digital innovation within traditional financial services has led to the creation of solutions that allow customers to seamlessly manage multiple accounts through self-serve digital methods, including robo advisors, and digital wealth management tools.
These initiatives will continue to rise in 2023, as many banks continue to partner up with fintech companies to strengthen digital transformation strategies to continue to expand services and customer bases.
It is predicted we will note a switch from banking apps being utilized as a self-service tool to more relationship management led to provide a more customized service that takes into consideration customer needs to provide tailored advice.
Banking apps will utilize smart data to understand a customer’s needs and preferences based on financial behavior over time.
Consumers are wanting more and more from their financial services provider, and in the future, it is expected to be a key differentiating factor when it comes to both attracting and retaining customers.
Not only do consumers want digital means of accessing accounts, but will also continue to prefer to use digital channels to communicate with their bank, credit union or building society vs contact channels such as in-branch or by the phone.
At Jethro, we predict this digital banking trend continuing to gain speed in the foreseeable future – and understand the importance of offering first-class customer service.
Focus on big data
Big data will allow financial institutions to be more personalized and support sales through utilizing predictive analytics. It will enable banks, credit unions and building societies to have better, and smarter intelligence about their customers and their behavior, which will help them develop and tailor their product and services.
Throughout 2023, there will be continued emphasis on big data which will allow banks a 360-degree view of customers’ habits, to ensure financial institutions can continue to develop a targeted offering.
It’s predicted that blockchain will continue to make a prominent appearance in 2023 for financial services for both customer experience and money transactions and transfers.
This can be expected in the growth of players trying to enter the market, alongside more blockchain-based transaction processing platforms being developed.