The epidemic has expedited a number of trends that are driving the banking industry’s drastic upheaval. Instead of reflecting on their previous successes, banks are now looking forward to the chances that lay ahead. They are challenging their preconceived notions and rethinking banking from scratch as they grow more proactive, adaptive, and innovative. In order to enable a brand-new and exciting future for banking, we’ve chosen the top 10 trends that, in our opinion, will have the biggest influence on disrupting banking in 2023.
For finance, the epidemic represents a turning moment. Fundamental changes have been made to everything. We are moving into a new era where banking will be more innovative, customer-focused, and ethical. Senior Managing Director and Global Banking Lead, MICHAEL ABBOTT.
Here are the 10 trends that will shape banking in 2023:
Super-apps take over: Super-apps are dominating both human contact and the digital environment. They provide a variety of services and goods from various suppliers on a one platform. Banks must choose whether to work together or compete with them.
Green gets more popular: Banks are being urged to take on the role of environmental, social, and governance (ESG) stewards as ESG concerns increase. They must coordinate their plans and activities with sustainability objectives and encourage their clients and neighborhood residents to do the same. There will be expenses, but there will also be substantial gains.
Innovation is back in style: Banks are rediscovering their creative potential and posing the straightforward but persuasive question: Why not? in order to keep up with fintech and other rivals. They are testing out fresh concepts and remedies that go beyond improvement and into invention.
Fees are updated: Free products from buy now pay later (BNPL) companies and digital-only challengers are pressuring banks to be more innovative and transparent with their charge structures. They need to develop new revenue and value-generating strategies without alienating their clientele.
Banks are exploring for ways to establish meaningful discussions with clients in digital areas. The digital brain gets a caring heart. Artificial intelligence (AI)-based technology can assist in establishing a human connection so they can offer supportive and individualized counsel.
Digital currencies attend college: Experiments like central bank digital currencies (CBDCs) are gaining traction. Cryptocurrencies are here to stay. We are looking for use examples that illustrate the financial advantages of digital money.
Artificial intelligence (AI) and machine learning (ML) currently outperform humans in several banking jobs. Smart operations strive for zero. These technologies are being used by banks to automate procedures, use resources more efficiently, cut down on errors, and improve customer satisfaction.
Cloud adoption spreads: For banks, cloud computing is becoming a requirement rather than a nice-to-have alternative. In order to improve their agility, scalability, security, and creativity, banks are shifting more of their apps and data to the cloud.
Data becomes a commodity: Banks hold a tone of data, which is the new oil of the digital economy. In order to develop new goods and services, enhance decision-making, personalize consumer interactions, and profit from their data assets, banks are using data.
Prioritizing purpose reflects banks’ growing awareness of their responsibility to improve society as a whole. They are articulating their mission and values, connecting them to their culture and strategy, and sharing them with their stakeholders.
These trends demonstrate how banks are reinventing themselves in order to succeed in the future. They are not only addressing their own needs and problems, but also developing a vision for a time of bold digital transformations, compelling purpose-driven strategies, and exceptional customer and employee experiences.