Philosopher and novelist, George Santayana, once said, “Those who don’t study the past are doomed to repeat it.” This is true in business just as much as it is in history. Those who study the past can profit and predict what is to come. With the new year starting, it’s time to look at 4 trends that are emerging in the financial services industry.
Investing in Cybersecurity
In 2018, Cybersecurity and risks will remain a primary concern for many banks. With the advent of major cyber-attacks across multiple industries, cybersecurity will continue to be a primary focus throughout the year. As technology continues to grow, especially in the financial services industry, the risk involved in cybersecurity measures of prevention will continue to grow. According to a Cybersecurity Market Report, a projected $1 trillion will be spent on cybersecurity between now and 2021. With the increase of hacks in the last year, this number is likely going to become tangible. In 2018, the industry will see many financial service giants invest more money in robust processes and solutions that aim to potentially decrease cyber risks.
Fintech Remains Relevant
The year of 2017 saw many great fintech trends and innovations. This is not likely to change in 2018. It is evident that the focus on improving customer experience in the realm of fintech has set a bevy of new standards in 2017. Some studies have predicted that in 2018, fintech investment values are projected to increase to somewhere between $3.4 and $4.7 billion. With its impact on improving customer experience, fintech will likely continue to lead innovation and remain a trend in the financial services industry throughout 2018.
Significant Gains in Automation
Automation has become increasingly more prominent in the business world, especially within the financial industry. In today’s industry, robotic process automation, or simply robotics, is innovating how bank insurers and capital market firms execute basic processes. With developed automation, banks can see more efficient processes and high rates of productivity which leads to thoroughly improving client needs and customer experiences. With the right execution of automation tools, it is possible to see financial firms grow in market share as they develop seamless processes.
Corporate Banking: Customer Experiences, Middle Market, and Technologies
In 2018, corporate banking will likely invest in more technologies that will improve customer experience and productivity as well as target growth in certain markets. The expanding middle market will also likely become a focus for loan expansion. According to a report by the National Center for the Middle Market, the expanding middle market is projected to see a 6% increase in revenue in the next year. One leading banking firm, JPMorgan Chase has already seized this opportunity and announced that it will begin making middle market lending a focus in its growth strategy.
In terms of customer experience, corporate banking firms will likely look to digital solutions that can help improve the customer experience. With drastic growth and demand for cryptocurrencies and blockchain technologies, it is inevitable that it will become a trend in corporate banking as well. Technology-based solutions could help corporate banks with their fee-based services that will engage customers more effectively and efficiently.
Trending in 2018
While most of the trends listed here are recent trends in the financial services industry throughout 2017, there will likely be an increased emphasis on them in 2018. As a business professional in this industry, you will likely get the opportunity to rethink your strategy and challenge banking expectations as customer behaviors shifts to complete control, personalized products, and simplified journeys across channels.