- by Net Pro Referral
- 13 Jul 2018
Financial Services Industry Trends
Until the late 20th century, the financial services industry was associated with few well-defined industries that used to deal in money. These included banks, loan associations and brokerage houses. However, after 1970 as technology became too common and integrated deeper into customers’ lives, a wide range of other firms start becoming the part of the financial services industry such as online banking, insurance, mutual funds, etc. Today, it is one of the largest industries in the world that plays a big role in economic performance. Let’s take a look at the current financial landscape.
Global Financial Landscape 2017-18
There is no doubt that the financial landscape 2017-2018 has been quite unstable. During this time period, we saw many colossal political, economic and administrative changes that affected the financial services industry growth rate.
According to experts, issues like tech cold war between the United States and China, Brexit negotiations between European Union and the United Kingdom and other global political upheavals around the world will continue impacting financial services in the coming years.
However, according to the renowned global management and technology consultancy, Brickendon, in spite of political and economic disruption, blockchain industry, robotic process, data automation will be few emerging technologies in the financial services industry.
Let’s have a look at emerging trends in financial sectors.
For the last few years, we have been reading much about the use of blockchain in the finance sector. There are various types of financial services where blockchain technology can be best used such as banking, insurance, brokerage, etc. In 2019, we will continue to see its usage in these sectors and firms. Additionally, there are many other industries that are analyzing how they can reap the benefits of the blockchain. The technology seems quite impressive in reducing operational costs.
Robotic Process Automation:
It will come as no surprise to see robotic use is rising in the financial sector. RPA (Robotic Process Automation) that makes use of software robots to mimic human operations has shown ample of potential to speed up various financial processes. Most probably in late 2018, you will see machine learning and robotic systems are replacing a large number of employees as it reduces the need for human participation. However, it is also true that it will help you manage and retrieve the information required to do the job effectively. Its usage will eliminate delay and errors in the various back-office functions.
So, if you are looking for opportunities in the financial services industry these are few essential things you should learn for sure.
You can see yourself how digitalization is revolutionizing the financial sector. As businesses are more focused on offering a good user experience nowadays, it has become necessary for financial institutions to offer efficient and personalized services to their audience. The automated user interface seems exceptionally effective in helping it.
The coming years will be all about the digitalization. It will provide convenience to both employees and customers and help in saving time. By embracing digitalization, financial institutes can bring improvement in their customer service to a great extent. It can help them reduce human errors and build customer allegiance.
Changes in Political Environment:
As we said in the beginning, the changes in the political climate will continue affecting the financial sector. The withdrawal of the United Kingdom from EU (European Union) will be top headlines. Banks and financial institutes will keep a close eye on the UK’s departure from the European Union and will make future planning accordingly.
Also cited as RegTech, regulatory technology is going to be a big thing in the financial industry in 2018-19. For those who don’t know, this technology puts information technology into use to improve regulatory processes. Regulatory Technology may help in reporting, compliance and regulatory monitoring.
It can benefit different industries associated to finance. Over the past years, it has developed as an entity leveraging state-of-the-art data automation and information management technologies.
It is another emerging trend in financial sectors you will see speeding up in 2018. This new technology aims at making financial services more accessible to the public. It uses an advanced data analytic technique to eliminate rogue trading activities within the banking sector.
2018 will be a big turning point for the financial services industry growth rate. As we have seen popularity in the internet and mobile banking in the past few years. We can expect an excessive use of artificial intelligence and robotic systems in banking and other institutions now.
These are few of the financial services trends that are going to dominate in 2018-19 and the coming years.