Top 5 Banking Business Trends to Watch in 2021
2020 was a year of immense change, and the banking industry was not left behind. With COVID-19 causing widespread disruptions, banking businesses faced several challenges that urged them to embrace digital innovation while ensuring customer satisfaction. As we move further into 2021, we can expect to see emerging trends that will shape the banking landscape for the foreseeable future. Below are the top 5 banking business trends to watch for in 2021.
1. Customer Experience is Still King
In 2020, the pandemic forced consumers to limit their in-person interactions with banking businesses. Consequently, digital channels became the primary mode of engagement between banks and their customers. As we move into 2021, banks will need to continue improving their digital offerings to meet customer expectations and remain competitive. This includes providing quick and easy online account opening, enabling mobile payments, and seamless integration with third-party applications.
2. Emphasis on Cybersecurity
With the rise of digital banking services and increased online engagements, cybersecurity will become an even more pressing concern in 2021. Banking businesses will need to remain vigilant and invest in robust security protocols to protect customer data and prevent fraudulent activities. They will need to implement measures that are capable of identifying suspicious activities on customer accounts and blocking them.
3. Artificial Intelligence and Machine Learning
The use of AI and machine learning technologies has been growing in the banking sector for some years now. However, in 2021, we can expect to see a more significant uptake of these technologies. AI-powered chatbots will become an even more prevalent method of customer engagement. Additionally, machine learning will be used to improve risk management and fraud detection.
4. Open Banking
Open banking regulations were introduced in 2018, allowing customers to share their financial information securely with third-party providers. In 2021, we can expect to see an increase in the adoption of open banking, with more banks opening up access to their application programming interfaces (APIs). This will enable third-party providers to offer added value to customers, including personalized financial advice and seamless account aggregation.
5. Remote Work and Collaboration
With COVID-19 still impacting many parts of the world, remote work has become the new normal for most industries. The banking sector is no exception, and in 2021, we can expect to see banking businesses investing in virtual collaboration tools and technologies. This will enable remote teams to work seamlessly, while also ensuring compliance and productivity.
Conclusion
As we can see, there are several emerging trends that will shape the banking industry in 2021 and beyond. Despite the challenges brought about by COVID-19, the shift towards digital in the banking sector is accelerating, and this trend is set to continue. By keeping a keen eye on these trends and embracing change, banking businesses can remain competitive and offer their customers the best possible experience.
