The financial service business has seen a lot of changes in recent years. Many of them have been disrupted by the Covid-19 epidemic, rapid technology change, and a new generation of agile, tech-driven startups.
The following few years will be even more significant, as we see which firms are able to adapt and succeed in this rapidly changing climate.
Among the many technological developments to keep an eye on as the financial industry changes, here are five key ones for 2022.
1. Moving to the cloud
Before the COVID-19, financial services had their doubts about cloud computing and were lagging behind when it came to its adoption. Pandemic boosted the transition as cloud has a few cool benefits for the FinTech sector, including advanced security, high scalability, and resilience.
The term “multi-cloud” refers to using multiple cloud service providers along with a hybrid cloud strategy, where banks invest in a combination of public and private cloud services. This infrastructure is well known and used in the industry.
According to Accenture, 60 percent of its banking clients work with more than one cloud provider, and more than half have established a multi-cloud strategy. Also, cloud services are progressively considered a method of fulfilling financial corporations’ environmental, social, and governance goals because many major providers have strong policies on sustainability and decarbonization.
Our skilled developers have created and moved a lot of fintech solutions to the cloud over the Covid-19 period and even before. Here’s one of our cases – Cloud-based Finance Management.
2. Automation
Robotic process automation (RPA) has been on the rise alongside financial services’ increasing usage of AI. RPA is appropriate for a wide range of common tasks in this industry. Сustomer data verification, financial statement reporting, money management, and other tasks alike are ideal for robotic process automation. This way, companies can cut their costs by up to 75%.
By applying automation in 2022, financial services will benefit from greater efficiency and lower costs. Skilled employees will be able to devote their time to more complex tasks since they’ll be free of routine activities. Once the basic chores are completed, institutions may consider further development of their services.
If you’re in need of automating your financial process, contact us now. Crunch team will gladly help you with that!
3. Mobile banking
Smartphones have become a crucial target for banks and other financial institutions attempting to distribute their services. Mobile banking isn’t a new trend for us but as now banks and financial institutions without applications are considered to deliver bad customer experience, it is crucial to emphasize its importance once again.
More and more of us make purchases via a phone as we are abandoning the practice of carrying plastic in our wallets in favor of mobile payment systems. Our society is becoming ever more digital and connected, and for the majority of us, our phones serve as the main interface between the digital world and reality.
Hence, banks are now more interested in having their apps than ever. This is because several factors contribute to this, ranging from consumer experience and security purposes to financial benefits. It is more cost-effective for banks to serve their customers this way.
Starting with 2022, banks and insurance companies will increasingly use cardless banking, chatbots, and customized communications, which will all flow through our phones.
4. API management platforms
APIs have aided integrated apps and services for a long time. They’re becoming increasingly popular among financial institutions now because they extend what banks may provide their clients – such as the opportunity to manage finances better by giving budgeting software access to a checking account. Also, customers expect financial services not to wall off their data.
The worldwide API management market is on track to hit $6.2 billion by 2024, and clients that banks will need to keep up with are nearing a point of no return. As a result, global API management software will become increasingly vital as organizations develop more innovative applications requiring increased access through APIs.
APIs let financial services providers connect customers’ financial information through mobile apps, smart devices, and browsers. Thus, banks will be able to keep up with the speed of a more technological world every day.
5. Blockchain
Blockchain technology is a potential game-changer for the financial services industry. Blockchains are distributed databases implying they’re kept on numerous computers rather than just one. They’re also encrypted, allowing only those with the cryptographic keys to modify or alter them. They’re also governed by consensus – that is, individual data alterations can only be made if everyone responsible approves it.
Blockchain’s potential to transform all industries is undeniably exciting. It can provide transparency, optimize infrastructures while cutting down fraud, accelerate fundamental operations like clearing and settling transactions, and enhance security.
Blockchain is already widely used. For example, PayPal and Mastercard support transactions using blockchain currencies, while Wells Fargo and HSBC have adopted this technology to establish foreign exchange payments.
Throughout 2022, there surely will be more cutting-edge practices with blockchain, giving financial services an excellent potential for improvement.
The past two years have seen a ton of sudden changes in our culture and financial services industry. These trends are certain to continue into the future. We at Crunch don’t lag behind! We are ready to help you develop and deliver a competitive solution to the market and move your existing ones to the cloud. Contact us to get a quote!
