4 key trends in FinTech & financial services to watch in 2021
By Pavithra R
No one can deny the fact that COVID-19 has accelerated the digital transformation trends in the financial ecosystem. The pandemic has rapidly increased the number of people engaging with their FIs digitally, and the breadth and quality of the experience have gotten much more important, seemingly in an instant. Fiserv, a leading global provider of financial services technology solutions, has outlined 4 key digital transformation trends to watch in 2021.
The key trends pointed out are:
1, Blending the consumer experience across multiple channels: The pandemic has cast into stark relief the need for people to bank how, where and when they want. This has resulted in bridging the old barriers between physical and digital at an accelerated pace.
Currently, FIs are navigating the challenges of the pandemic and the abrupt shift to digital. However, even after the pandemic, the branch will be part of a comprehensive experience in which more care should be taken with respect to the consumer rather than the specific channel.
The branch remains fundamental. But creating a comprehensive experience requires finding ways to make the in-person experience a true complement to digital engagement.
2, Open Banking and integration: Open APIs play a crucial role in delivering smart, secure, agile and relevant experiences to consumers. Open banking extends data and banking as a service to give consumers the ability to move and manage money where, when and how they want.
Open banking also enhances consumer loyalty through personal financial management services or other partnerships. Enabling consumers to bank the way they want is the priority now and after the pandemic. Open banking can enhance this flexibility and help FIs unlock capabilities that lead to richer consumer experiences.
3, Data Insights and analytics: None of the above-mentioned experiences can happen without the ability to harness the power of data. Gaining insight from data is critical to enhance the consumer experience and to provide innovative offerings.
Strong data analytics will continue to be a top priority as FIs seek to better understand consumer trends and expectations. That understanding helps heighten engagement with consumers and, in turn, build loyalty.
4, Building a foundation in the cloud: For digital transformation to reach the full potential, the right infrastructure is essential. Open-banking partnerships, powerful consumer behaviour insights and instant transactions from any device all depend on the enabling technology.
With the cloud, FIs are finding the agility they need to be built into their platform, allowing them to gain richer insights, support a wider ecosystem and deliver a better digital experience that aligns with their transformation strategies. FIs will continue turning to that tech enablement in the cloud. It is considered the key to being ready for the next decade of evolution in financial services.
Also, read US Financial Services Technology Market Report.
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