There is no doubt that digital innovations have greatly impacted the financial services industry. Whether you own a startup or an established business, it’s highly important for you to keep an eye on the existing trends and developments that are making high tides in the finance sector. The following digital trends are shaping the financial sector, and we will quickly break them down so that you understand how.
Customer Experience, Personalization, and Data-Driven Marketing Are the Major Focus
Considering the fierce competition that financial service industry has been facing from emerging entities, it’s not surprising that marketers are putting more emphasis on the techniques that will help them attract new customers along with retaining the existing ones.
A recent report revealed that the optimization of customer experience is one of the exciting opportunities to work on in 2019. Around 700 industry leaders indicated that besides customer experience, the data-driven marketing and personalization would be a top priority this year.
It’s a Breakthrough Year for Open Banking
Open banking, which was launched just a year ago, has been one of the most important innovations to focus on. In the first quarter of 2019, the Open Banking Implementation Entity counted approximately 23 million open banking API calls, which is around 3 million higher compared to July 2018.
Not to mention, open banking has created new opportunities for businesses, especially for startups and independent entities. Moreover, it has allowed established banks to invest in money management apps to assist their customers in tracking their budget and spending.
“Rebundling” Is On the Rise
Since fintech has been playing a critical role in unbundling the financial services according to consumer’s willingness, a large number of fintech companies have started making a move to network with more customers by introducing a vast array of services.
Robinhood, the fintech brokerage company, announced last year that it was launching free checking and saving products that will generate interest of around 3% on deposits. Nevertheless, many fintech companies are still striving to leverage their positions to expand their business in the industry.
Established Banks Are Creating Their Own Challenger Brands
Some major banks, in 2018, proposed strategic plans to create their own challenger brands. RBS, for example, launched a mobile-only bank in an effort to move about 1 million of its NatWest customers over to a new platform.
In this regard, an RBS spokesperson confirmed that launching new approaches for customers is one of the ways to secure their business in this rapidly changing industry.
Along with that, he further confirmed that the company is focusing on using the latest technology and automation techniques to deliver their customers an incredible financial experience. Similarly, HSBC also created its challenger brand to target small and medium-sized entities (SMEs) in the UK.
Fintechs and Banks Are Teaming Up
While there is no denying that fintech rivals are significantly impacting established financial services companies, it is incorrect to assume that well-grounded firms are their enemies. Surprisingly, fintech companies and established banks are cozying up.
Consequently, this will allow the established banks and fintech companies to create business platforms where customers can explore and acquire financial services, usually being offered by trusted third parties.
Considering these emerging trends in the financial industry, it’s worth noticing that customer’s experience is the primary focus for financial institutions in 2019. That being said, it’s time to adopt new payment methods, like the ones offered by MOBILEMONEY, for your business.
The Bottom Line
While the financial service industry is changing rapidly and the competition among business rivals is fierce, it’s in your best interest to keep these trends into consideration.
Last but not least, integrating your business with your strategies while keeping the financial trends in mind, will undoubtedly help you thrive in this highly competitive corporate world.