In 2019, banking and finance professionals witnessed industry trends such as the beginning of the end of community banking, an increase in mobile banking, and banks leaving legacy core systems behind, according to Forbes. In 2020, they will see new and exciting trends. A few upcoming trends professionals should be aware of include AI, blockchain as a security solution, and an emphasis on customer UX.
Work in Banking and Finance? Watch for These Industry Trends in 2020
— Automatic Intelligence (AI) — AI is nothing new, but Forbes stated that more than half of all finance decision makers are currently investing in AI technology, despite having been slow to adopt AI in the past. “The technology helps financial institutions with risk management and lending decisions and is foundational in making other technology such as big data analytics, robotic process automation, and voice interfaces work,” a contributor to Forbes wrote. It was also stated by Forbes that AI would save the industry $447 billion by 2023. If you work in banking and finance and haven’t seen your organization make AI a priority yet, that may change this year.
— Blockchain as a security solution — Cybersecurity in the banking industry is a continuous issue. A single data breach has the potential to do serious damage to a financial institution. In extreme cases, a cyber attack can financially ruin a bank or financial organization. Because it has numerous points of verification in every transaction, blockchain will be one of the top data security solutions of 2020. “That multipoint verification secures the information being transmitted and creates detailed records every step of the way. This can be comforting for those looking to move large amounts of money,” stated BizTech Magazine. “Blockchain has been on the financial industry’s radar for a while, but now it’s set to explode.”
— Better Customer UX — Without providing a great customer user experience (UX), banks will struggle to retain customers. In 2020, the banking industry will see an upswing in organizations actively improving customer UX. Tearsheet reported that Pierre Habis, head of consumer banking at Union Bank, said, “I see 2020 as the year of the consumer experience for digital banking…. For those who are in the traditional banking industry, I believe the focus will remain on integrating new technologies and enhancing digital offerings but the emphasis will be more around providing a more valuable, more personalized experiences for our clients.”
A few other industry trends banking and finance professionals should keep an eye out for in 2020 include increased collaboration with other companies, enhanced data utilization, and advanced marketing performance, per The Financial Brand.
What Trends Do You Expect to See This Year?
As a banking and finance professional with experience under your belt, you probably have some ideas of your own concerning what trends will likely emerge this year. What industry trends are you personally looking out for in 2020?