7 important finance trends october 2022 with Mark Finance:
2022 will be both a challenging and an exciting year for financial institutions. Innovative new technologies are redefining the sector, shaping the services that financial organisations offer, the ways in which they interact with consumers, and the ways in which they apply new sources of data across departments.
The evolution of financial services is set to continue. Let’s examine the 7 top trends for financial organisations in 2022:
Buy now, pay later (BNPL) will continue to grow:
Buy now, pay later (aka BNPL) has radically altered consumers’ behaviour by allowing them to buy goods online and pay the cost back in a series of instalments. In other words, they can buy goods and services that they can’t afford—at least, not at that time. That’s why it has become so popular, growing at an annual rate of 39%. Indeed, the market as a whole is expected to be worth over $260 billion by 2025.
Open banking will dominate the future:
According to Statista, the number of global open banking users “is expected to grow at an average annual rate of nearly 50 percent between 2020 and 2024, with the European market being the largest”. Considering how open data benefits consumers as well as financial players, it’s easy to understand why this trend will become increasingly popular moving forward.
Cloud-native systems will replace legacy alternatives:
Leading financial organisations continue to embrace cloud-native systems. For example, in 2020, HSBC signed a long-term deal with Amazon Web Services to move their existing legacy functions over to new cloud-based alternatives. And then there’s Deutsche Bank, which partnered with Google to deliver a cloud-native “fully-managed environment for applications”.
Artificial intelligence (AI) and machine learning (ML) will increase in importance: Artificial intelligence (AI) and machine learning (ML) make organisations more efficient and more effective. These technologies gather, sort, and analyse enormous datasets in seconds—and are almost error-free. Financial institutions can spend their time acting on these data-driven insights, instead of wasting unnecessary time and effort manually digging through the data itself.
Cybersecurity continues as a top priority:
Cybersecurity has always been crucial for financial institutions. However, with the number of data breaches up until the 30th of September 2021 exceeding the total number of events throughout 2020 by 17%, it’s clearly more of a concern than ever before. These cyber attacks have a wide-ranging impact on organisations. In fact, 42% of businesses say that digital fraud prevents innovation and halts their expansion into new channels.
