The indicators of this are all across the sector. Our Banking Top 10 Trends for 2022 study identifies the ten that we believe will have the most impact on defining the exciting new future of banking.
It’s not uncommon for significant changes to only become apparent in hindsight. However, the COVID-19 outbreak has been a watershed event for banking that can be seen in real-time. Every day in 2022 brings us one step closer to this new age of digital banking solutions.
Banks today are more proactive than reactive, more prone to question established practices than to adhere to them, and more willing than ever to adopt. They’re more tech-savvy than most people imagined imaginable, and that’s saying something. It’s becoming less important to them to be the most excellent digital version of themselves and more about creating and innovating in the digital realms.
This is a short overview of each.
1. Everyone wants to be a super-app
In the current state of affairs, the number of real super-apps is short—but remarkable. Because of the maturation of these multi-service platforms, banks are becoming more conscious of the fact that their offers are just four or five APIs away from being merged into another digital platform.
Consequently, this year, banks face a vital dilemma: should they attempt to become a super-app, work with one, or remain out of the fray?
2. Green gets real
The world, including financial regulators, is now taking environmental issues seriously. In 2022, banks will be under intense pressure to collect data and technologies that will allow them to carefully monitor progress toward meeting their own and their customers’ environmental objectives. Banks are being pushed to play a critical role in protecting our environment, with some excited and others unwilling to comply. Customers’ satisfaction, shareholder endorsement, and staff motivation will all improve as a result of this new position, despite the significant expenditures that will be connected with it.
3. Innovation makes a comeback
It was not just an economic recession but also a recession in creativity that resulted from the financial crisis of 2008. Banks concentrated on ensuring that the fundamentals were in place correctly. After the epidemic has passed, however, creativity is once again on the rise. However, although digital has become a requirement, it is no longer sufficient to fuel revenue growth. Banking organizations will recover their creative mojo in 2022 as they investigate where innovation is most important in their operations and products.
4. Fees … a magical mystery tour
When it comes to fees, customers have been taken on a roller coaster trip throughout the years. In the olden days, all of these costs were clearly stated. The business then transitioned to an extensive collection of hidden fees for things like overdrafts, late payments. And returned checks, among other things. Now, banks are battling for clients against a rising army of fintechs and digital-only rivals that are openly promoting services that are miraculously free—at least from the viewpoint of the customer—in order to maintain their market share. Banking competition and more online visibility force financial institutions to become more purpose-driven and put their consumers first. It won’t be easy, but they don’t have a choice in the matter.
5. The digital brain gets a caring heart
Many banks have become technically accurate but emotionally bereft as a result of the digital revolution. When you include in-branch closures as a result of COVID-19 (not to mention the financial impact on individuals and companies), it’s clear to see how customer relationships are getting strained, if not destroyed. However, although technology such as the Oracle digital banking experience has played a role in the breach, it may also play a role in the solution by assisting in the prediction of a customer’s purpose and wants. This may assist banks in providing more individualized, sympathetic service and guidance in order to develop long-term, trusting relationships with customers.
6. Digital currencies head for college
To yet, digital currencies have been very volatile and have shown little regard for historical precedents and customary practices. An online rumor has had an impact on some people. Or, to put it another way, they are adolescents. Their first year of college will take place in 2022. The titans of finance have acknowledged that they are here to say something, and central banks are becoming more aware of the possibilities of central bank digital currencies as a result of this recognition. This year will also see a greater emphasis placed on regulations. The excitement around digital currencies is starting to fade away, according to experts. This year will clarify their potential contribution to the global financial system.
7. Smart operations put zero in their sights
As artificial intelligence and machine learning begin to outperform human skills in some jobs. We are on the verge of experiencing a paradigm change. In 2022, banks will be able to rethink their companies for a future in which revenue does not necessarily correspond to personnel by using these technologies in middle- and back-office activities.
8. Payments: anywhere, anytime … and now anyhow
Nowadays, customers take it for granted that they may make payments (and receive payments) from anywhere and at any time. The advent of open payment networks has brought us closer to allowing people to pay in whatever method they desire as well as accept payments in any currency. This shift, which is being push in part by regulators and in part by entrepreneurs. Will put significant pressure on financial institutions to rethink their payments offers.
9. Banks get on the road again
Banks, like many customers who have grown tired of lock down, will once again experience wanderlust in 2022. And hunt for expansion opportunities both outside and domestically. On the other hand, they are unlikely to undertake typical mergers and acquisitions. This will look different in each area. But we believe that Asia will be the most exciting region in the banking industry in the foreseeable future.
10. The war for talent intensifies
In the midst of the pandemic, which caused a disruption in the supply chain for banks’ most valuable asset: talent, digital quickly rose to the top of every CEO’s to-do list. Although the unmet need for technical specialists is a substantial source of worry. It represents just a tiny part of the talent that banks desperately want. Leading banks are beginning to see that a fundamentally new style of thinking. And functioning is require in order to regain their status as preferred employers. Those capable of identifying and implementing the extensive adjustments necessary will have a far greater chance of competing in an increasingly turbulent economy than others.
Since the dawn of time, banking’s core business strategy has been unchanged: “don’t disturb the peace.” After two years of a worldwide epidemic, it’s evident that this strategy might lead to bank failure. Banks may look different in a decade, but their CEOs will be doing something different than they are now. To top it all off, they’re going to do it in an entirely new method, with the OBDX.