bankingciooutlook

Retail Banking Trends to Look For in 2022

Banking CIO Outlook | Tuesday, September 13, 2022

Financial institutions should develop innovative business strategies, implement cutting-edge technological solutions, and focus on customer needs.

FREMONT, CA: Although challenges are associated with the rapidly growing popularity of digital banking, the increasing emphasis on innovation, the introduction of cutting-edge technologies, and the rapid evolution of the industry ecosystem, these developments also present numerous opportunities for the banking industry. The most advanced technology may be used in various ways, from assisting customer support to launching brand-new products and services. Artificial intelligence (AI), the cloud, robotics, application programming interfaces (APIs), and cyber security are all technologies that have benefited the financial sector.

Cloud-based

Most banks haven't moved their essential systems to the cloud, and banks need to improve their speed and scalability. Financial organizations should adopt cloud computing technologies. The bank's core cloud workloads would improve customer insights, innovation, efficiency, agility, and security and business continuity threats. Most financial institutions' antiquated technology disappoints clients. It isn't easy to update, expensive to maintain, and doesn't work well. Moving to the cloud is the best flexible choice for banks. Smaller banks can employ this technology to compete with larger ones.

Intelligent Process Automation (IPA)

IPA includes cognitive automation, computer vision, machine learning, and robotic process automation. Most banks struggle to implement intelligent automation despite knowing its benefits. Start small with IPA and focus on the value each process will receive once integrated across numerous financial systems. Without a computerized back office, customer service can suffer. Automating the following processes will transform how customers view their bank.

E-banking

Embedded finance integrates financial services with a non-financial function. For instance, Uber eats is coupled with payroll automation software, allowing customers to make embedded payments. Embedded banking connects financial services to consumers. It streamlines access to financial services. Companies of all sizes are launching embedded financial services for individuals and enterprises. Most banks see it as an opportunity rather than a threat to existing banking rules.

Banking-as-a-service approach (BaaS)

Banking-as-a-service provides end-to-end financial services online. BaaS integrates digital banking services into non-banking products. An ecommerce website can offer loan payment services, mobile payment cards, debit cards, and so on without a banking license, and banks can increase revenue by adopting BaaS. BaaS helps traditional banks build new income models. These models let banks commercialize their capabilities, data, and infrastructure.

Banking experience

In Banking 4.0, financial organizations should offer customers contextual and lifestyle banking experiences. Banks should use data to build customer experiences. Banks have tons of data but can only be used as part of the value chain. The pandemic made customers more digital and connected. It means banks should personalize consumer experiences. Focusing on the customer experience requires employing several technologies and being adaptable. Banks must simplify and update their technological stacks using microservices, lightweight and reactive systems, analytics, AI, machine learning, and so on.

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