Any pondering upon how the forthcoming year 2021 will be for the most core lifeline and significant Banking, Financial services arena. However, that will not be an easy task without even mentioning the very dreadful bearing that 2020 and the pandemic has had on public, industries and nations as well as even the most powerful economies.
Unlike alongside the universal economic turbulence, the Banking as well as Financial Services have been able to initiate as “Better Guys” at all times around, recreation of their reputes as well as swiftening the digital shifts. One of the core conclusions is progressively smarter, more well-organized, fast-tracked online Payments.
However, it is notwithstanding to just blame the COVID-19 Pandemic and criticize it as within this year during 2020, the Banking arena has never innovated or upscaled like never-ever before. This is the latest normal. Overall, the clients as well as the whole society would be huge beneficiaries from the shifting industry.
Here are few of our forecasts for the forthcoming year: –
Prominence are reborn: –
Within the globally stage, the Banking as well as premier Financial institutions are all thrusted away to stop and integrate as well as for adapting the newer refined advanced systems, as well as in processing the clients within the most uncertain scenarios prevailing viz Pandemic.
This was done in form of
- Accommodations in loans,
- Aided governments with the distribution of monetary relief,
- Aided clients by upping contactless expenditure limits and virtual deposits.
- In 2021, banks will risk losing that rosy glow as economic environments initiative them to deal with non-performing loans, mortgage foreclosures, layoffs etc.
- However, beyond their role in society as providers of capital and liquidity, banks will invest to endure their names as trusted and good corporate inhabitants and utilize their power to encourage their clients and workers to adopt higher conservational and ethical standards.
Approaching of age in the way of Action: –
Back in Q1, when bank workforces activated up their laptops on their dining room tables, banks that were purposefully undertaking business transformation fast-tracked their energies. Those that were tactical, or on the fence, now understand with painful clarity that this work must be undertaken strategically.
Cracks in process and the way of waged and their consequential risks can be immobilizing. Especially from a back-office perspective, it is not enough to rely on “organisational memory” and collegial nearness for work to get done right.
Advanced banks pushed the margins of remote work, and the proof of concept was successful. So, they’re replication down on evolving digital twins and touching to the cloud. They’re adopting the hybrid office/WFH approach to condense healthiness risks and diminish cost permanently.
The death of currency: –
Ok, maybe the rumours of the death of currency are a bit overstated since there will always be the necessity for cash (and, to some extent checks; the USA, for example, cannot seem to live without them).
However, the pandemic has enduringly altered the way that clients and small businesses bank, and the reduction of currency has been fast-tracked by a decade by the pandemic. For an illustration: – the Norwegian central bank said that cash payments in that country have plunged to just 4% of transactions since March.
Consequences? It will be serious to continue promising payments to be smart, safe and flexible to compete in new world, in both retail and commercial banking. Also, the enduring change in the mix of channels will see banks’ face-to-face engagement with customers fade. Branches aren’t going to go away entirely, but they will be reserved for high value activities – by appointment only. To recompense, the individual touch has to be carried digitally and intelligently.
The role of the bank as a “financial wellness partner” is being born. Banks will use clients’ data, not just to personalise and segregate banking knowledges, but to make recommendations for products and services beyond old-style banking from across their ecosystem to serve their clients well.
Just as clients own their currency (physical or digital), in the future they will mandate that they own their statistics (and can share it with whom they choose). Then retail and profitable clients will share their data in return for value.