From AI to RPA, here are the tech trends that will shape financial services in 2021.
The year 2020 is over, but the ripple effects of the COVID-19 pandemic remain across different industries, spanning from Manufacturing to the Banking industry. Deemed essential, banks and financial institutions stayed open during the pandemic but had to adjust operations initially and reinvent eventually to remain relevant to the customers.
As the dust settles on 2020 there were various solutions and tools that banks picked up in the past some months which are likely to last. In this blog, we will introduce you to the key tech trends that will shape financial services in 2021.
Mobile Strategies Getting A Deeper Hold in Banks
Technology has added convenience to every industry, including the financial services sector. Mobile banking is adding ease to the ways banks and financial service providers offer services to customers. It has been adopted tremendously in recent times, owing to the pandemic that caused customers to stay home. The ease of making financial transactions seamlessly via a mobile phone has attracted consumers’ attention like never.
According to Statista, the total transaction value in the Digital Payments segment is likely to reach US$6.7MN in 2021.
The digital shift in recent months has prompted banks to become more mobile internally and invest in mobile devices to give employees more flexibility and help customers make transactions from anywhere. Mobile banking is powering banks to deliver quick service while allowing customers to maintain social distancing, both the things that remain necessary for a delightful customer experience moving forward. In this year, more and more banks will strengthen their mobile banking strategies to stay future relevant.
AI in Banking Becoming a New Necessity
Today, banks have N times more information available to them than earlier, which they can leverage to design tailormade and customer-centric products, services, and offerings. With the accelerating digital transformation across industries, the opportunities have also multiplied for banks to appeal to customers with offerings of their choice, enabled by data analytics-powered artificial intelligence. Personalized marketing is not only allowing banks to promote their offerings better but streamlines how customers find what they’re looking for faster.
Deloitte survey suggests that 70% of all financial services firms are leveraging Machine Learning to fine-tune credit scores, detect fraud, and predict cash flow events.
Additionally, with IT environments becoming complex than ever between cloud and on-premises operations, banks are likely to invest in AI for integrating processes to help employees work seamlessly.
RPA is Helping Banks Grow More Efficient
Banks are increasingly investing in RPA (Robotic Process Automation) to become agile, competitive, and profitable. They are heavily spending on automation to automate tasks, save time, and allow their employees to focus on complex situations with customers. Banking, being an industry that demands customer trust with their most personal matters, building a strong relationship has become very important.
Gartner’s recent study shows spending on RPA will reach a whopping $2.4 billion in 2022.
RPA is empowering banks to accelerate customer loan processing with no scope of error. With automated customer service tools, such as chatbots, banks can ensure that they cater to customers 24×7. In this digital age, when modernization is no longer negotiable, RPA is helping banks to shift from legacy to relevant systems.
Banks to Increase Cloud Investment
Pre-pandemic, banks and financial institutions have been more reluctant than most to shift to the cloud. But the pandemic carried a powerful tech awakening for banks to the merits of cloud computing.
According to McKinsey, between 40 and 90 percent of banks’ workloads globally could move to the cloud in the next 10 years.
After years of foot-dragging, many banks are giving up their cautious approach to cloud-based solutions to make their business future-proof. It falls in line with the pressure from the financial costs of lockdown, which prompted banks to seize any opportunity to cut costs. Since cloud solutions are priced in a way that you pay only for what you use and demand no commitment to billions of dollars, their adoption is growing.
These tech trends make it vital for banks to redefine their operations to deliver future-proof offerings. The financial institutions and banks seeking a fintech platform or fintech solutions can explore opportunities with Arttha. Write to us to know how Arttha banking solutions will make you much more efficient, robust, and customer friendly.