Sep 27, 2022

Key Financial Trends for 2021

  • By Andrew T.,
Key Financial Trends for 2021

The last year (2020) was very much uncertain for the finance industry as the pandemic ripped all the predictions by the springtime. As the New Year (2021) has approached, the uncertainty condition in the finance industry still persists but several trends are believed to progress in these hard times.

Some of these trends to look out for the finance industry in the New Year are as follows:

Customer Journey Evolution

The banking sector is now focusing on customer experience after the delivery of online services to customers due to the pandemic. This growing trend is letting the customers have their personalised services according to their individual needs. The modern customer needs the services according to their personal requirements and easily accessible at their fingertips.

The technology can benefit to meet these demands of customers. With time we can see the AI entering the finance sector to fulfil and grow the sector to improve the customer’s experience.

Collaboration over the Competition

The various firms are working together to provide a wider variety of services and products to their customers. They are thinking to achieve more by collaborating and not competing in the sector. This sector can grow very much through the application and development of open banking throughout the industry. Open banking lets the firm grant access to the financial data of the customers using their applications, gathering and collating the data together for developing and delivery of unique solutions for the customers. Cleo and Plaid are an example of applications utilising open banking’s potential and delivering into sleek and smart products.

NeoBanks Struggle

The high street banks were the only banks to hold the maximum number of customer accounts, but this got changed up in this pandemic situation shaking this harsh reality. The big banks such as Monzo and Revolut also struggled in the pandemic and were struck with considerable losses and their plans to achieve a sum of profit got extended in future.

Digital Currency

The digital currency can be the new era currency as the Bank of England published a paper introducing the Central Bank Digital Currency (CBDC). This currency is a new form of digital payment instrument which can be used by households and businesses. This was introduced or accepted because of declining cash in the market and increase of private cryptocurrencies such as Bitcoin.

Central Banks were very slow to make changes in their policy but this change in norms is widely accepted as a currency throughout the sectors.

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