The evolution of the banking sector is coming with time. The major changes happened with time after the pandemic which lead to the banking sector transformation. These are the trends which determine the future of the banking sector. Leading banks of the world are showing their willingness to encourage some changes in their traditional business.
It will bring convenience to the customers and the smooth functioning of the banks too. Here are some of the top 10 trends beneficial in shaping the future of the banking sector.
Encourage the need of super apps
All of us carry smartphones with us. Therefore, the people want the banks to bring the super apps so that they can use the apps on the phone and do all the banking work on it. They want to have minimum visits to the bank branches. All the works should be completed only on the single touch of their hand. The banks are hiring the developers to design the simple apps which can work according to the preference of the customers.
Green is getting real
Green gets real in banking. Soon, they will become stewards of the environment. Some of the proposed rules and regulations are determined to redirect their way from the carbon heavy companies. The bank wants to promote sustainability in their business. At the same time, they want to ensure all the workings in their business perform smoothly. Still, it will be a test for the banks to provide revenue to the fossil fuels and gas companies. Some of them will embrace the changes and become stricter on their clients environmental footprints.
Comeback of innovation
The decades after the financial crisis in the banking sector. The banks are trying to promote the innovations in their business. They started on bringing new products for the customers and identifying the areas for the growth and development for their business. The presence of the payment apps Venmo and Zelle that made the lives of the customers easier to do the transactions.
Transparency on bank charges
In the past, the customers did not have any idea about the account maintenance and ATM charges. Banks kept these charges in the category of fees. Now, the banking sector is bringing transparency in their working by telling the customers clearly about these charges deducted by the banks from their account.
Convenient digital banking services
Banks spend years in the digitization of the services. These things came into reality during the pandemic. Banks emphasize the importance to design the user-friendly applications so that it is easy for the customers to do the transactions from the bank accounts easily. Earlier, the apps designed were not according to the customer requirements. Majority of the customers decided to avoid the use of such apps for doing the transactions. They faced the fear of the security threats.
Boost banks productivity
Banks are looking forward to boosting their productivity by encouraging the use of Artificial Intelligence and Machine Learning. It can smooth the back office processes of the banks and bring improvements in its functioning. The use of the new technologies with the use of APIs and cloud exclude the issues of waste and latency. It can accelerate the bank’s efforts.
Make payments anytime
The big thanks to the availability of apps Alipay and Venmo. It is becoming convenient for the customers to send and receive the payment anytime. The banks are getting tough competition from fintech and co-operative organisations in the online payment systems. Some of the major banks headquartered across the world demanded the internet companies to accommodate the small fintech companies with them.
Bring transformation in the old school business approach
It is high time for the banks to bring changes in their traditional business approach to remain in the competition of the banking sector. Earlier the banks relied on the restrictive business approach. Now, the banking sector is looking for new opportunities to bring some transformations in their business. They are shaping working continuously as per the customer needs. Banks are keeping customer satisfaction on their priority. Their greatest asset is to deliver more on the return on equity and identify the opportunities to innovate effectively.
Intense talent war
The technology is becoming the critical enabler for the banks with time. Therefore, it increases the intensification of the talent war. Still, it is the stark reality related to the shortage of the talented in the different fields such as engineering data and security. Banks are looking to hire talented individuals in the security and engineering data roles. The staff can work on keeping the bank’s confidential data securely. The banks are facing the biggest problem unmet demand of the talented staff on the engineering roles.
It is affecting the functioning of the world’s leading banks. Many young and talented individuals want flexibility in their work. They find the work culture of the banks rigid. Soon, the young people decide to leave the banking sector and move out.
There are some forward thinking banks concerned about this issue. These banks are planning to bring some revolutionary changes in the work culture. The young individuals can easily adjust working in the banks and bring the best of the talent to ensure the growth and development of their business.
Bank functioning back on road again
Banks are looking at the scope of growth after the pandemic as things are coming back to normal. Firms that are making their way abroad are dealing with the digital challenges.
US banks are focusing on buying their rivals in the future. In the year 2021, JP Morgan Chase did the deal to buy the UK based robo advisor Nutmeg. On the other hand, the major Asian banks are preparing strategies to promote the growth of their business.
One example is Thailand’s Siam Commercial Bank which worked effectively on its business model and turned itself into a holding company with the bank to provide short and long term loans to the businesses and the customers.
