Financial Services Trends You Should Be Aware Of
Whether you are a consumer or a corporate entity, there are some common trends you should be aware of. These trends include technology, COVID-19, and the threat of cybersecurity.
Technology has opened new doors for the industry
Despite all the predictions about the death of banks, technology has helped the financial services industry to become more efficient and profitable. Technology is now a key differentiator for the banking industry and will remain an important focus in the future. Whether it is using AI to analyse customer behaviour, or enabling customers to make more informed financial decisions, technology will play a significant role in the future of the financial services industry.
During the last decade, the financial services industry has committed itself to digital innovation. Whether it is through online banking, mobile applications, or small business loan platforms, technology has changed the way banks operate.
COVID-19 pandemic changed consumer behavior
During the pandemic, several countries went into lockdown. The coronavirus had a big impact on consumer behavior and business as a whole.
One of the first things a business must do is learn to improvise in such a crisis. The best way to do that is by using technology to improve efficiency, cut costs, and enhance the customer experience. The post-pandemic world will require a new breed of retail chameleons, not to mention a few digitally native entrepreneurs.
The COVID-19 pandemic has also had a profound impact on the global online grocery industry. The biggest implication is that retailers are no longer limited to the confines of their own brick-and-mortar stores. They now have the ability to deliver an exemplary customer experience across multiple digital stores.
Cybersecurity is a threat to the industry
Despite the fact that the financial services industry has an acceptable level of protection, it is still a high-profile target for cyberattacks. Cyberattacks can have devastating effects on financial organizations. In fact, BCG estimates that financial services companies are 300 times more likely to be the target of a cyberattack than other industries.
During 2016, 66 percent of financial organizations experienced a cyberattack. The financial services industry is second only to healthcare in terms of the number of cybersecurity attacks.
Financial services companies are highly vulnerable to cyberattacks because they process massive amounts of customer data. This data includes information such as social security numbers, bank account information, home addresses, and income information. Financial institutions need to implement a cybersecurity strategy that is capable of protecting customer data from threats.