Digital trends reshaping the Banking and Insurance Industry in 2020

Banking and Insurance are now faced with innovative technologies that revolutionize the financial system.

Digital trends reshaping the Banking and Insurance Industry in 2020

Banking and Insurance are now faced with innovative technologies that revolutionize the financial system. The future is characterized by service urgency and instant functionalities, increased security, and virtual currencies. Furthermore, financial organizations minimize the direct interaction between employees and clients with remote applications that make it simpler than ever to have banking and insurance necessities covered without even reaching a branch.

Economic uncertainties and intense competition are strong disruption factors in this sector. More and more businesses are striving to innovate and strategize to be one step ahead of the game and continue growing. Digital transformation is their chance to operate more efficiently, invest in the right technologies and ensure sustainable growth and business model.

In this article, we will look at some of the digital trends reshaping the Financial Organizations that rethink the concept of currencies and offer customer-centric experiences and benefits to their clients.

1. Self-service and instant functionalities will reshape the industry

The conventional banking and insurance scene is set to instantly shift in the coming years as the adoption of emerging technologies increases operational efficiency, enhances speed-to-market and deploys 24/7 services and individualized solutions.

Self-service solutions such as mobile and online banking are a hit as customers want to stay connected anytime and anywhere and detach from the classical 9 to 5 schedule to access their finances. More than that, digital wearable devices and smartphones make it increasingly feasible to offer personalized experiences and services to clients.

2. Cloud services are the foundation for an agile business world

Cloud is the platform that enables agile application development. Cloud-based infrastructure is how banking and insurance business deliver flexible, on-demand access to their resources. These new digital business offerings imply that organizations must scale their infrastructure to adapt to changing market expectations, manage priorities, reduce risks, and stay competitive.

Main operations of financial services are deployed to the cloud and automated services. Industry leaders start using cloud computing to leverage disruptive advances like the blockchain, AI or IoT.

3. AI and Cognitive Solutions for changing customer requirements

Emerging technologies such as AI and robotics are helping financial organizations address challenges like regulatory requirements, the need for instant results and data protection policies.

Industry leaders already integrate the benefits AI in their operations. Cognitive Solutions like chatbots, round-the-clock customer services and anti-fraud compliance are just a few of the benefits of improved operations with AI. Furthermore, the increased efficiency due to optimizing highly resource-demanding manual workflows with fully automated cost-efficient robotic operations are offering better customer experiences.

4. Blockchain and cryptocurrencies depower classical financial operations

Cryptocurrencies such as Bitcoin, Ethereum and Ripple are an increasing trend and playing their role in depowering cash-based operations even more. Technologies such as blockchain are already shaking up the foundations of traditional banking and insurance business models.

Furthermore, smart contracts and digital payments offer the great advantages of eliminating intermediaries and speeding up underlying processes. Pre-built blockchain services offer organizations a head start on increasing their operational efficiency and optimize bookkeeping transactions and upgrade security requirements.

5. Security and data protection regulations increase

Financial institutions need to reexamine the fundamentals underpinning their core operations as customer preferences, demographics, and lifestyles change. As financial businesses must keep up with the need to transform, incorporating functionalities like one-click payments, password-free biometrics, and conversational interfaces must also include security and data protection solutions.

Security and sensitive data protection are an important aspect of how financial institutions operate. New approaches to include levels of protection for their services such as biometric authentication like iris or fingerprint recognition are already being implemented worldwide.

Final thought

Innovative technologies in the financial sector are now revolutionizing the banking and insurance industry. As a result, organizations must learn to overcome technology-driven disruptions and modernize legacy processes to meet changing customer requirements.

That is why more and more businesses are putting a new focus on innovation and many financial institutions re-deploy savings from efficiency initiatives and reconsider operating models by evaluating emerging technologies to stay relevant in the future.