Although the financial services industry was able to continue operating normally despite the digital tsunami that occurred during the pandemic, it is now abundantly evident that the winds of change are not going away anytime soon. More and more, Financial Organizations are doing strategic planning for their technical setups and thinking about whether or not the tools they have used in the past are the right ones to use in the future.
Here are the top five Financial Organizations trends to watch in 2022;
1. AI and Data Analytics.
By 2022, Financial Organizations like banks and other institutions should grasp their post-pandemic customers and digital presence. The use of AI (artificial intelligence) enables valuable insights about the banking behaviour of the customer to be gained. This allows them to provide service more quickly, develop proactive offers, and better anticipate their customers’ actions.
Suppose the bank can extract high-quality data from massive amounts of unstructured data. In that case, all of these things become feasible possibilities. For Financial Organizations to fully tap into the potential of data, it is imperative that monitoring, analysis, and interpretation of the data be carried out correctly. Because of this, it is very important to teach the staff how to use data analytics and how to use it most effectively.
2. The Artificial Intelligence revolution
Within the next ten years, artificial intelligence will optimize or transform nearly every aspect of the Financial Organizations. Leaders in the finance industry should be aware of how this will impact their functions, prepare their teams with new skill sets, and investigate the necessary investments for artificial intelligence.
Wilton advises asking yourself how you plan to develop or acquire the required skills, what data infrastructure you will need to support artificial intelligence, and how you plan to create it. And to begin, give some thought to the low-hanging fruit of where you can implement AI.”
3. Digitization of money
Before the year 2020, the function of cash in society was in transition, as contactless payments were already ingrained in the culture of many countries in Europe and Asia. As a direct result of the pandemic, 27% of businesses in the United States reported an increase in the number of contactless payments made by customers. This is true even in the United States, which has slowly abandoned the use of cash.
One additional effect of the digitization of monetary systems is the increasing likelihood that our private information will be linked to and dependent on our financial transactions in Financial Organizations It is possible that in the not-too-distant future, even more of your personal information, such as whether you are a student or a homeowner, will be encoded into your monetary transactions and possessions.
For instance, payment systems might become largely unnoticeable, and your identity might be used to determine whether or not you need to make a payment for the goods and services you receive. This is some pretty transformative stuff, but it also carries enormous risks concerning data security and identity fraud.
4. Cloud-Based Operational Systems
Not only have cloud-based operational systems that boost digitized processes for financial operations improved efficiency in those operations, but they have also improved security (a critical concern in the financial and data world). The transition toward a world that is more digital was already underway, but the pace of it has recently picked up. In the absence of recent events, it is possible that it would have taken longer for society to become comfortable with the necessary changes.
Throughout 2020, widespread stay-at-home restrictions challenged businesses everywhere to keep employees engaged, productive and connected. Due to the overnight shutdown of corporate offices, the entire Financial Organizations services workforce (including traders, bankers, and support staff) was forced to rely on their home internet connections, supplemented by VPNs and VDIs, to continue working.
Though it was functional, daily life was hampered by issues such as slow connections, low bandwidth, security worries, incompatibility issues, and a lack of tools for working together. Remote workers, like traders, need fast connections. In contrast, quantitative analysts need a lot of computing power, and retail branch workers need responsive insights platforms to help customers.
Supporting in-person and remote workers will require a rethought workplace that combines immersive digital and mobile experiences with adaptable hardware. Traditional barriers will be broken down by 2022, thanks largely to new ways of working hybrid hours and connecting with customers that rely heavily on helpful, cloud-based tools that work well together.
From Financial Organizations services to vendors, regulators, and supervisors, the year 2022 has been a year of deliberate cultural transformation to find new ways of working together to create safer, cheaper, more inclusive, and more equitable financial markets. This transformation has been taking place across the board.