Banking Insights: Financial Services Trends for 2023

 The lightning-fast development of technologies is changing the concept of finance and money. This change is based on a new experience that is becoming available through digital innovation. Digital technology is democratizing the financial industry by making financial services more accessible and convenient for customers.  

Financial services leaders are now applying the lessons learned from 2020 to address the looming challenges as well as to explore new opportunities. They are leaning in on smart strategy and execution while focusing on talent, technology, regulation, and purpose. While some organizations are choosing the cost-cutting route, others are planning for smarter execution by incorporating technology to add value and create superior customer experiences. Many organizations are also responding to ESG requirements defensively and focusing on what's required by finding opportunities to invest in people as well as the planet. 

While financial services are focusing on accelerating new digital transformation as part of their strategic framework, the looming fears of a recession are putting a spoke in the wheel. When we dive into a few more layers and explore the framework of commercial banks, it can be identified that they are continuing to have a loyal client base but are facing fierce competition to win a greater share of corporate clients. And with high inflation and recessionary concerns, and supply chain challenges looming, the financial industry is decelerating corporate demand for capital investments.  

Read more: Financial Trends: Role of Investment Banker in Banking Innovation 

With the financial services sectors witnessing significant growth during the pandemic and the situation normalizing for many, growth has seen an upward trajectory, highlighting that the trend is not just a passing phase. While there is sustained growth, the exponential growth proves how the industry is quickly adapting to disruptions. However, some of the critical priorities that financial leaders should address include the following- 

  • Omnichannel Engagement: Omnichannel engagement channels for customers offer a way to interact with the bank or other financial enterprises. It is, therefore, vital for them to flesh out omnichannel information exchange within their institution to ensure that any consumer data surfaces at the right time, thus assisting in building a seamless experience for them. 

  • A Mechanized Medium for Customer Delight: Financial service provides work with multiple tools and gleans meaningful data from across systems to engage with customers. However, this is cumbersome and time-consuming, as well as partially successful without the right medium. 

  • Tech-driven Focus: Finacial institutions are adopting new tools and technologies that are designed to facilitate smooth services. This new addition is further helping to resolve pain points and derive greater value. 

Top Financial Services Trends in 2023 

The financial sector has long relied on traditional methods and has recently started engaging in digital transformation. 2023 is expected to be the year where there will be opportunities that will help redefine the future, one that is driven by profits and purpose. Financial services leaders are now preparing themselves to move the industry forward.   

For many stakeholders, it is now becoming more critical than ever to adopt a gamified approach to deal with these challenges. And with financial service organizations exploring new ways to navigate 2023, they will also explore emerging technologies' potential. Moreover, they should prepare to take risks with these new technologies in ways they haven't imagined before. 

Let's explore the future financial services trends of 2023 in terms of customer experience that will help define the integration of innovations and bring more value to customers by shaping their experience in the near future.  

  1. The Rising Significance of Advanced Analytics 

Advanced analytics is today considered the key to true customer profiling and retention and omnichannel engagement. It helps in gaining a 360-degree view of the customer segment, demographics, and behaviors, enabling the financial institution to understand what customers are looking for. It also assists them in drafting a bespoke value proposition in real time. Analytics also assists in redefining every process in a financial institution and makes it more effective. 

Read full blog here:  

https://www.sganalytics.com/blog/top-banking-financial-services-trends-2023/

Comments

Post a Comment

Popular posts from this blog

Trusting in Trust Architectures – Raising Privacy Questions and the Way Forward

Image
  A trust architecture includes technologies and methods that aim to protect enterprise data, while speeding up digital transformation initiatives and complying with all data privacy-related laws. The increasing prevalence of connected or the internet of things (IoT) devices and companies’ migration to the cloud is pushing organizations to re-assess and validate the credibility of their devices, as data expands rapidly across applications, application programming interfaces (APIs), and networks. In addition, the growth of applied AI, 5G, and the metaverse is expected to further accelerate this trend. Cyberattacks and data thefts have been on the rise in recent years and are posing new challenges by taking advantage of technologies, such as quantum computing for breaking encryptions. According to IBM’s Cost of a Data Breach Report 2022, the global average total cost of a data incident is USD43.5mn, up 2.6% from USD4.24mn in 2021. The research also revealed that 83% of the organizati...
Read more

Leading Data Science Trends to Watch in 2023

Image
Data has a significant impact on how firms operate globally. Businesses are now able to recognise the most recent industry trends and produce insights that improve performance thanks to data science. This is assisting them in laying a foundation that will help them achieve the desired growth. In order to find customer insights, businesses must use agile innovation in their disruptive business models. Data gathering and analysis play a crucial role in determining the future of enterprises, sectors, and even entire market segments in this era of rapid digital landscape evolution. Data science is a crucial element that will drive them in the future if they are to continue being prosperous and relevant. Industries may expand and endure in this cutthroat environment by integrating data science and its linked components. Businesses concur that analytics, data science, and machine learning have the ability to alter several facets of marketing and sales as a result. The impending data science ...
Read more

The Science of Music: How Big Data Is Transforming the Music Industry?

Image
The music industry is becoming very competitive. There is an ever-mounting pressure to produce the next big hit. While producing quality music is a priority, there is no point in creating music that people won’t like or listen to. Hence, the industry is turning to something more concrete that will help it understand the general listener's changing taste in music and reap greater profits. This is where data science comes in.  With advanced big data analytics tools to monitor music patterns and preferences, the music industry is enabled to predict the next big music trend or hit. This is the reason so many music companies are turning to  data science  to aid them in determining which songs will cater to a larger audience.  Data science and music are emerging as a combination that might baffle a lot of people.   But the question that arises is-  How can music be influenced by data?   The answer is more complicated than usual.  Today, produc...
Read more