Five Banking Trends Important For Financial Institutions To Adopt In 2020
It is obvious that the most common trend in the banking and finance industry is the move to digitized products and services, especially online and mobile banking.
Due to the pervasiveness of computing – which gives everyone the ability to access several services on their devices on the go with seamless comfort and speed, consumers no longer have the need to visit the bank building for their transactions.
However comfortable, it is pertinent that users secure themselves when conducting financial transactions online. One important way of doing this is connecting to the internet using an iOS or Android VPN when submitting sensitive details online. This helps encrypt their data and also secure their connection.
From a digitized perspective, discussed below are 5 banking trends important to every financial institution from 2020 and beyond.
#1 Data Creativity and Utilization
Whether small, medium or large scale organization, data is quickly becoming an essential tool for the development of every business. Although it is regarded as the new gold which should be an asset that should be stored, adding a little creativity to how data is stored and eventually processed will matter and eventually bring about considerable change from next year.
Utilizing a data-driven approach, marketers should begin to place more focus on the use of relevant and ethical data, paying attention to creative ways on how to develop the right content, presenting it to the customer and having a revolutionary way of obtaining data from them. On the long run, it helps the organization widen their horizon with marketing and ultimately increase their return on investments.
#2 Banking as a Service (BaaS)
Due to the stringent regulations in place especially in the United States, not just anyone can set up a bank. It is a resolve to salvage this situation that gave rise to banking as a service.
BaaS is a platform that affords third party institutions like fintech utilize APIs provided by banks to connect with their existing systems and build banking services on top of the existing, yet regulated infrastructure. So rather than having these third party operators as competitors, the banks have them as partners or customers using this front.
#3 Increased Cybersecurity Measures
The relentless increase in cybercrimes both in the financial and tech industry at large has called for the need for stricter online security measures. As the internet expands in capabilities and services get more connected, there will still be several security concerns expressed towards such services.
This is why the year 2020 and beyond will feature more biometric security measures to check the flaw detected to be inherent in the use of conventional password security.
#4 Mobile Banking
It is no news that for a financial institution to pull customers and in the end, make returns on investment, they have to afford their customers with a lot of comforts when using their services. One such way which has become a convention is the invention of mobile banking.
Nowadays, having a mobile banking application is not enough to attract and keep customers. Providing them the opportunity to perform additional features such as card hot listing, obtaining loans and reporting errors, etc. are becoming absolutely necessary.
#5 Investment Banking
This has always been a type of financial service which involves a professional providing expert advice and opinions to individuals, businesses and even governments on how to invest their money. For a long time now, this service has always been mutually beneficial to both parties.
With the advent of Artificial Intelligence and smart programs, these programs can make predictive analysis on markets and help investors make more profitable decisions before the market makes its move in either direction.
In conclusion, following the trend in all cases might not be profitable – especially in the financial markets. In the industry, however, particularly relating to technology, following the trend is usually important especially if a business aims at attracting new customers and keeping the existing ones.
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