Change is inevitable. If you resist change, then you are giving room for something wrong to happen. From a financial perspective, all the key players are supposed to embrace change. In the last few decades, there have been a lot of developments in the financial sector because of technological advancements. For instance, there have developments in customized software solutions to suit the needs of clients. In the money lending sectors, significant developments have been made as well.
So, what should we expect in the year 2020? Well, in this discussion, we are going to discuss the emerging trends in financial services in 2020. Do you think we are going to have a major financial shake-up this year? If your answer is yes, you are correct. There have been significant changes before, and we are going to see more changes, especially in the banking sector. More than ever, consumers have a variety of options in banking, and this has a lot of implications. For instance, even the most developed institution must make concerted efforts to remain relevant. Even lenders have to accept what they perceived unthinkable a few years back. The following are major trends we should all expect in financial services in the year 2020.
When was the last time you physically appear in the bank? I cannot remember the last day I set my foot there either. Thanks to the digital banking transformation, most of the consumers can easily transact. Today one can transfer funds, settle bills or maker loan applications through mobile devices.
What is more, when it comes to mobile loans, the institution with the easy to use the application carries the day. For this reason, institutions are doing all it takes to design apps with a user-friendly interface. It is for the service providers to adapt to the changes in the industry if they have to remain competitive and relevant.
Gone are the days when we used to look at pretty buildings whenever we needed financial services. Today, all that consumers want is accessibility – an app that can be accessed 24/7 and easy to use. Besides, clients want minimum contact possible. In 2020, we are going to witness increased efforts in availing client-centric services to the customer market place through mobile banking. Institutions have invested heavily in digital transformation, and therefore, there is much to come this year.
The entire financial sector is going mobile. Interestingly, third party institutions competing with banks are also embracing this change. They are likely to be money lenders like Fortune Credit, financial managers or budgeting applications. This year, it is going to be very necessary for banks to figure out how they can incorporate it with third-party services. It will be imperative for banks to consider the kind of information they will provide, the institutions to deal with, and the exact services they feel they can provide directly to clients and cancel the role of intermediaries’ altogether.
On several occasions, I’ve walked into some major stores without my wallet, expecting to use mobile pay but got disappointed. Has this happened to you? There are many people out there who would wish to use this service, but unfortunately, a lot of stores are still not in a position to adopt this idea. Nevertheless, we are more likely to experience a drastic change this year. Mobile payments will be adopted significantly, and already, there is a huge indication of that. For instance, retailers such as Honda have adopted this option via their car dashboard. What will prevent large banks and companies from embracing it?
To what extent do you trust your bank? We all want our hard-earned money to be secured. Any time there is a security concern, individuals do not hesitate to go to their banks and reset their passwords as well as the security questions. Banks do not violate consumers’ trust in any way. Any time there is a slight security notification, customer care departments often receive constant calls. Any company dealing with money is investing highly in security. The entire financial sector should focus not just on common approaches, but make significant innovations in security. For instance, some applications utilize biometric sensors to offer extra security and safeguarding the accounts of their clients.
This is one of the most significant trends expected in 2020. In general, there is a quest for accountability and transparency at all levels, leaving the financial sector in a very critical dilemma. Ask yourself, what kind of transparency do consumers perceive essential and which specific aspects of privacy are provided in the law. Among the basic information clients want involves instruments the institution has its funds in, as well as how safe the instruments are. Additionally, consumers will always want to deal with the institutions with the most outstanding way of addressing this issue and pleases them. Also, technological changes happen rapidly, and so you should expect more innovations in this regard.
The blockchain technology has been trendy for a while, and it is going to dominate the year 2020. Various firms have linked to commercialize the technology as well as utilizing it in different financial services. There is going to be a constant increase in funding as blockchain shifts focus from retail to quite institutional use. The public ledger is likely to be more significant in the operational layout and technology of financial organizations.
There are going to be a lot of transformations in the financial sector in 2020. We have discussed six trends we hope will dominate the year. For instance, banks are embracing technology now more than ever. Consumers demand to transact and have everything through their devices. The payment process will continue to be automated to a greater extent this year.
Nevertheless, there are so many regulations in the financial sector. All the key players are expected to operate within the provisions of law. However, there are going to be a lot of transformations in financial services.
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