The banking industry has been undergoing a significant shift over the past few years. The tides of change bring with it new ways of doing business, reflective of the growing need for banks across the world to reimagine their business models, customer engagement, operations, and transformation approaches.
Here are insights on the 11 most talked-about banking trends for both retail and corporate banking businesses, with a mix of technology and business themes, that highlight the tech-rich and collaborative future of banking.
Recomposing Business Model – Looking to the Future
To keep pace with change so their organizations remain relevant, undisrupted, and ahead of competitors, banks need to recompose their legacy business models and technology landscape and lead with transformation initiatives that enable them to fight for a share of “new-age banking”, conducted as digital-first, embedded finance, marketplace banking, BaaS, among others.
Reimaging Customer Engagement – Leveraging a Holistic Model
With new ways of doing banking – delivering personalized omnichannel customer journeys isn’t an easy ask. Banks need a holistic model that will empower them to offer tailored customer journeys across channels, applications, and devices.
Recomposing Operations
To compete with the new age competitors that run digital-first operations, banks need to take a dual approach to manage costs and strengthen foundations to accelerate growth.
Re-Envisioning Security – Leveraging Esg to Secure Enterprises
It’s important for banks to track their evolution as well as specific security threats and vulnerabilities, and take corrective measures based on what is uncovered, especially as they work on defending against adverse actors who have, at their disposal, all the latest technologies and tools.
Reconceiving Money – Digital Is the New Paper
Touted with the potential of ushering in new orders in financial inclusion, faster and cheaper payments, the digital currency landscape has expanded over the years. Banks must now capitalize on the implications of digital currencies in 2023 and take advantage of this trend going forward.
Composable Architecture – Preparing for the Future
With banks moving away from monolithic systems towards componentized and open architecture, composable solution design is the way forward. It enables coherence and coexistence of a heterogeneous application landscape while delivering the much-needed agility, flexibility, and resilience to meet the requirements of the new reality.
Banking Big on Cloud – To Scale Digital Success
A few years ago, cloud conversations in banking circled around adoption challenges related to security, compliance, or skilling issues. Today, it is no longer just a technology lever of efficiency, resilience, and scale but a catalyst of ecosystem innovation, time-to-market, and business value creation. Going forward, banks should strategize how to unlock the value of cloud to scale their digital success in 2023 and beyond.
Composing With APIs and Events – The Big Opportunity
Embedded finance is that rare opportunity that creates wins all around – for customers, who can avail banking services seamlessly to consummate any transaction without making an extra effort; for merchants and brands, who can attract customers; and for banks who can expand their business by embedding their services within other consumption journeys. Powered by the growing maturity of Banking as a Service (BaaS) offerings, the embedded finance is a big opportunity for this decade. In 2023, banks should strategize on how to take advantage of this big opportunity.
Harnessing the Power of AI – Trending Use Cases and Innovations
As analytics and AI technologies mature, they offer unprecedented opportunities to automate processes, elevate customer experiences and manage risks. AI implementation in banking, trending innovations, and what all this means for the future of banking in 2023 and beyond.
Immersive Experiences – Banking in the Metaverse
Virtual experiences are increasingly becoming commonplace for consumers. Capitalizing on the various accessibility components of virtual banking can help banks unlock significant potential for growth. There is a marked potential for innovative growth in 2023 for the banking sector in this space.
ESG-Led Banking Comes of Age
There are two levels of ESG impact that banks are well-placed to create today. The first is in the implementation of ESG standards and goals within the bank itself. And the second is how the bank’s ESG consciousness is reflected in its policies, especially around lending, incentivizing borrowers to be more ESG-focused and widening the bank’s sphere of impact. In 2023, banks should look to create a positive ESG impact directly and indirectly, through their larger sphere of influence.
Rajashekara Maiya is responsible for charting Finacle’s product strategy and defining its product roadmap, strategic acquisitions, alliance partnerships, and client engagements. He represents the company while interacting with external stakeholders such as analysts and the media. He is also responsible for the business consulting practice at Finacle, Eco-system innovation Group along with Cloud, Blockchain business. He has played several roles across diverse areas, including product management, solution architecture, implementation, and pre-sales over the last 20 years at Infosys. Maiya has been instrumental in the conceptualization and planning of Finacle Enterprise – the latest addition to the Finacle portfolio designed to deliver simplified transformation and progressive modernization capabilities to global banks. Maiya specializes in core banking, risk management, regulations, and compliance. He has been quoted on these and other topics in reputed publications such as Forbes, The Banker, Banking Technology, The Economist, Business Line, BBC Radio, and the Economic Times. He is on the expert panel of the McKinsey Quarterly; is a member of the XBRL Abstract Modelling Task Force (AMTF) Group, MIT Technology Review Global Panel; and is an Associate member of the Institute of Chartered Accountants of India. Maiya holds several patents and has pending patents in the areas of partner portals, delivery channels, offline banking, and customer experience. Maiya is also a co-author of the book called ‘SMACing the Bank’.
