Genome Blog / articles / Banking top trends for 2023
Aug. 5, 2022
The banking industry is constantly growing and introducing new financial solutions enhanced with the latest technologies. Only a few years ago, contactless instant payments and online banking as a whole were the most innovative features in numerous international markets.
In 2022, despite all the economic hardships, the banking industry was still developing and creating new bank opportunities for users. Now, we will try to look into the future and analyze the global banking trend for 2023. Learn more with Genome.
Top banking trends in 2023
Some of the future major changes in finances have to do with the following:
Welcome the cryptocurrency revolution
Cryptocurrencies are the new digital money of the 21st century. Despite the volatility of this market, more and more people are buying and trading crypto coins. Already in the near future, cryptocurrency payments will likely be implemented in our daily lives. No wonder many financial providers and fintechs, in particular, already explore bank opportunities in this sphere. Some providers have already introduced online wallets for both traditional money and crypto just within one app. And this trend will only be growing within the next few years.
Super-apps are already here
A digital wallet is no longer just a mobile application to transfer money online. The banking industry is always expanding, and so are all the financial features in your app. To make all the transactions and payments even faster, you can now book housing, order food or flowers, and buy plane tickets in a few clicks with online banking. Such an approach saves time and allows you to do daily chores much more efficiently because, for example, you don’t need to save your card details in different apps all the time.
Environmentally-friendly financial services providers
Banks are trying to go hand-in-hand with their customers’ views and preferences. That is why we now have more and more environmentally friendly providers to choose from. Using a virtual card instead of a plastic one is not the only option for how one can make a contribution to preserving natural resources. Some banks, for instance, offer biodegradable, recyclable cards; others plant a tree for each new customer, etc. The variety of such financial services depends on the country, but taking care of nature is a huge trend that is also changing the financial sphere.
The IT sphere boosts almost every industry, and banking is no exception here. Mobile applications, online banking, instant transfers, virtual cards, and many other features are only possible due to technological innovations.
Genome’s also using sophisticated technologies to take care of the most important – our clients’ security when managing their finances. One of our most recent improvements is the Genome token – a small device verifying our business users’ outgoing payments. This solution was created to prevent fraudsters from taking over your online wallet, as well as to avoid transfers made by mistake.
Because of high competition in online banking, users are looking for providers that will respect them and won’t try to charge them secretly. As a result, the winners are the banks showing all the fees in advance and notifying clients about all the charges.
Financial institutions that still have hidden fees risk losing the trust of their customers. Fee transparency is also a crucial thing in the modern, fast-paced world because users don’t want to spend hours looking for the pricing. On the contrary, they are looking for easily available, not hidden information, no matter if it’s regarding fees, transfer timeframes, or card limits.
AI and ML
Artificial Intelligence and Machine learning are changing the financial sphere dramatically. When it comes to online banking, AI, and ML, first of all, simplify communication with clients through chatbots. Instead of hanging on a line waiting for a free agent, you can now solve all the minor issues by going through automated responses on chat in no time. AI and ML already create tailored offers based on customers’ unique experiences and preferences. In the future, all these processes will become even more automated to ensure a smooth user experience and high satisfaction rates.
Pay anytime, anywhere
The Internet has made online payments not an option but a necessity. People are now working, studying, and shopping online. They need to be able to make purchases on the go from anywhere. Luckily, nowadays, one can buy goods and services using multiple devices, including even smartwatches. Card payments are, undoubtedly, quick and simple, just like instant transfers. However, regular transfers still take some time because of the security checks mostly. Maybe, in the future, they will also become quicker, and you won’t need to wait for days to move your EUR from Germany to some other country outside of Europe, for instance.
Cross-border digital players
Globalization has united the majority of countries of the world into one huge network. If we’re now shopping online abroad or traveling to another part of the globe, we also need our banks and providers to keep up with this tempo. This has to do not only with the speed of international transfers but also with the currencies supported within digital wallets and even with opening accounts online. Banks that operate only in one country cannot compete with large fintechs that offer services in the whole EU, for example, and support numerous currencies (USD, EUR, GBP).
Customers are a top priority
A customer-oriented approach is what makes any business in any sphere stand out. This principle works for online banking too. No one is seeking just another bank with a regular online wallet to transfer money online. With so many options out there, people are looking for some special offer that will make a lasting impression. Of course, the range of financial services is more or less the same, but luckily, an individual humane approach is what defines the bank of the future. Prioritizing clients is not only about excellent customer support or discounts. It’s also about advising what’s best for each individual based on their needs and educating them.
Employee competition in the banking industry
Employee competition drives any sphere, including a financial one too. In the modern world, employees need to adjust to the ongoing changes, be creative, and come up with new, better solutions every day. No matter what department we’re talking about, employees in the world of online banking are the foundation for the development of the whole industry. They are the ones who offer small improvements on a daily basis and, by this, make the lives of clients so much easier. Unsurprisingly, the workers with their views on the issue will be the most valuable ones shortly. Such people can offer a solution rather than just fulfill their responsibilities and follow the rules with no initiative.
What will be the future of banking?
At the moment, no one can say for sure what online banking services and financial mobile applications will look like even in 2 years. The banking industry is nowadays directly connected to technological innovations. It means that the development of modern technologies forces changes in finances. One of the best examples of such an interconnection is the implementation of contactless payments via such digital wallets as Apple Pay and Google Pay. We wouldn’t be able to purchase goods and services with our smart devices if there was no technology for this.
What are the new trends in banking?
Currently, the banking industry is under the profound impact of technological innovations. We can notice the development of super-apps with all the features and functionality, almost instant payments possible anytime, anywhere, and cross-platform access to your accounts. All these factors combined take our daily financial transactions and online banking to a whole new level. One more trend worth mentioning here is close attention to environmental problems. That is, numerous banks are trying to become more environmentally friendly, respecting the concerns and views of their clients.
What are the latest banking innovations?
One of the main banking trends is the use of advanced technologies, including AI and ML. These innovations change not only how financial mobile applications look and function but also modify user experience. For instance, people now can transfer money online almost instantly, pay in international markets in any currency, buy tickets and make bookings directly from their bank accounts. Online banking has almost completely replaced traditional brick-and-mortar financial institutions. And many more changes will be implemented already in the near future, so it’s high time to reimagine how we see our financial services providers.
What is the most significant trend affecting the banking industry at the moment?
Online banking trends and their impact on the industry vary from country to country. The largest trend now is probably AI and ML technologies implemented in financial mobile applications. Such an innovation shapes a whole new customer experience. AI chatbots are now helping users to receive answers to their questions much faster and more efficiently. Due to the ML, clients can now find the necessary information much faster and educate themselves right in their mobile banking application.