Revolutionary Trends in Banking & Finance Industry

On 17 Nov., 2021

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Revolutionary Trends in Banking & Finance Industry

Until recently, much of the attention of this industry is on improvising RoE or Return on Equity, given that multiple financial institutions manage the restrictive regulatory environments, economic uncertainties, technology-driven disruptions, overhauling legacy processes, and intense competition to meet contemporary customer demands. Nonetheless, more banks have been incorporating an innovative focus as financial institutions re-deploy the savings from strategic cost programs and efficiency initiatives into investments.

This offers a great foundation to the fundamental trends that reshape the banking and finance (BFS) industry and simplifies the understanding of the transformations getting undertaken by the financial institutions in order to keep its relevance intact even in the foreseeable future. As the BFS sphere adapts to the innovative paradigms, emerging trends that dominate this hub are FinTech companies’ emergence, ongoing digital transformation, Artificial Intelligence, and its increasing role, robotics, and more. Let’s cite the example of some trends that are reshaping the BFS sphere in leaps and bounds.

Lightening Focus on Digital Transformation

A prospective professional who aims at pursuing in banking and finance must know that the BFS arena is currently witnessing an aggressive and continued focus on digitization. The emergence and adoption of technologies bring in operational efficacies, improve speed-to-market, and deliver robust customer experiences.

Banks are investing in self-service digital platforms as online and mobile banking are becoming popular amongst customers. Wearable devices that include the power of smartphones are recently making it feasible for banks to provide targeted customer services.

Developing A Cognitive Aspect of The Business

While competitive forces and customer needs demand banks to adopt digitization, performance pressures force lenders to alleviate costs and keep healthy margins. As data protection laws and regulatory requirements put strains on stretched resources, technologies like robotics and AI help banks efficiently address the constraints.

Multiple pioneering companies are experimenting with the use of AI cases in operations. From implementing AI and providing agile services to using technologies for critical functions like regulatory compliance and anti-fraud, banks now realize double benefits to optimizing costs when improving the operations.

FinTech Companies’ Emergence

An aspirant who wants to pursue bcom banking and finance colleges in karnataka should learn that the emergence of FinTech companies is a new trend in the BFS industry. A multitude of banks seeks to exploit opportunities presented by the digital by leveraging technologies in-house or partnering with FinTech organizations. The companies, initially, were taken as the competitors created by the inability of the BFS industry to keep up with advancing breakthroughs.

But today, bank-FinTech partnerships have been optimizing the norm by offering marketing, loan servicing, administration, and other kinds of services to enable banks to offer tech-enriched banking products. Now, banks are also inventing the advantages of the bank-FinTech partnership, such as access to customers and assets. This results in these partnerships to begin reshaping the landscape of financial services.

As the banks are seen coping with developments that have made an initial impact already, the capabilities of transforming themselves with agility and speed and future strategies for surviving the next revolutions will, in a way, demonstrate the losers and winners in the technologically advanced world soon.