The pandemic has taken the world by storm. In the future, the year, 2020, might be considered a game-changer; just like the Roaring Twenties of the 1900s.
Many establishments were closed. Movements were restricted. People were laid off from their jobs. Commerce, in general, came to a gritting halt and throttled into life almost immediately. The world of cryptocurrencies was also influenced. It witnessed a sharp boost and is now nearing a trillion-dollar business. More than ever, opportunities to invest in bitcoin have not been this lucrative.
Due to safety restrictions, many organizations have had to switch to virtual correspondence and remote execution of jobs. Although these changes were initially thought to be makeshift, it appears that the world is trying to permanently adjust to the new ways.
The financial industries have also changed in form. In this article, we will look at some of the top changes that will shape financial industries in 2021.
Banks have had to cut down on staff in the pandemic. Some have taken an even radical decision to completely close down some of their branches. In replacement, they have invested in tech: digital, self-help services like biometrics, voice commerce, and chatbots.
Although banks had launched online services before the pandemic, more customers still preferred to visit their banks to sort out issues due to the limitations of the online service rendered. Banks would now look to kill two birds with one stone: cutting operation costs and cutting the long queues at the bank.
2. Open banking
The primary purpose of banks is to save money. However, the fulfillment of that primary purpose no longer provides customers with much satisfaction. They want to invest, instead of just saving, and traditional banks do not offer that.
Enter open banking. The number of third-party financial institutions has risen in the past year, and they offer juicy investment deals to their customers. These third-party institutions are also fully digital and their ease of use makes a double attraction. The only worry for most people is the security of the data they would have to share with third-party sites, but it’s only a matter of time until they gain public trust.
3. Fintech collaboration
In order not to labeled dinosaurs, traditional banks are now partnering with newer, progressive financial tech institutions to give them an edge in modern society. While the banks, with their solid foundations, hold the fort; the fin-tech partnership offers them the flexibility to match technological trends in today’s dynamic world.
Financial industries have keyed into human-centered designs. Human-centered themes are the zeitgeist of the current world. Hitherto, it was enough to create that interface that just works; an effective interface.
But with increased competition, these industries realize that they would have to do more to ensure customer loyalty, hence personalization. They create custom interfaces tailored to address the needs of each customer.
5. Going cashless
This was already in process before the pandemic. However, like most other things, the pandemic has fast-tracked the change. Experts have predicted a massive increase in cashless payments in the next four years; an estimated 11.7% rise in compound annual growth rate.
These are some of the trends that we are predicting would occur in the financial services industry this year. Some have been forced upon us by the events of last year, while others have already been in motion for a while now.