Financial Services Industry Trends

Barry L. Bulakites

December 19, 2022

Financial Services Industry Trends

Financial services industry trends include customer experience (CX), mobile-first design, and high-interest rates. These are important topics for many companies because they can help them stay ahead of the game and keep their customers happy.

Mobile-first design

Developing a website for mobile devices has become increasingly important. With more and more users turning to their phones to browse the web, a website with a responsive design can reduce user operations while still providing an enjoyable experience. However, you should rely on something other than this strategy to drive traffic. Engaging with your mobile audience is crucial to get the ball rolling.

A well-constructed mobile app can help you understand your customer’s needs and preferences. This will allow you to serve them at their most opportune times. In turn, this can lead to increased revenue channels.

For example, did you know that 54% of all internet traffic comes from mobile devices? To increase your chances of converting visitors, you must give them a great experience.

Blockchain technology

Blockchain technology can help the financial services industry improve processes, reduce costs, and eliminate fraud risks. It also could lead to new products and services. But there are some challenges to integrating this new technology into the financial sector.

For example, banks rely on intermediaries to maintain a record of loans. If something goes wrong, the bank is liable for substantial expenses. Similarly, consumers depend on third parties to process their transactions. However, the information passing through these intermediaries is susceptible to interception.

Traditional finance also relies on centralized databases. These databases are costly and need regular maintenance. In addition to that, the duplication of information creates delays in the transaction process.

To address this, financial services providers are looking for an all-in-one solution. As a result, several fintech solutions are emerging. These include P2P platforms and internet finance platforms.

High-interest rates

Interest rates are a key component of most Americans’ finances. They can impact savings, credit cards, and mortgages. As rates rise, consumers may see a decline in spending and businesses may tighten their belts. In some cases, a rising rate can be a positive. But in others, it may be negative.

One reason for the rise in interest rates is inflation. The inflation rate is increasing, a sign of an economy still struggling. In some instances, the rise is a necessary step to temper inflation. Another reason is the high oil price. The oil price is fickle. A spike in energy prices will increase the cost of goods and services.

When the Fed raises its benchmark interest rate, longer-term interest rates rise. This means that investors get more interest on savings and certificates of deposit. The financial services industry is particularly sensitive to changes in interest rates.

Keeping up with regulations

It’s no secret that financial services have been under the gun from a regulatory perspective since the global financial crisis. This puts pressure on the industry to develop innovative solutions to mitigate risk. Keeping up with the latest regulations is no mean feat, and it’s no longer just about complying with the letter of the law.

To succeed, companies must invest in the right technology, such as cloud computing and big data, to help them keep tabs on their growing and sometimes volatile customer base. In addition, firms need to be aware of what they can’t measure in their daily business and know how to mitigate the unintended consequences of their efforts. Fortunately, there are solutions out there. For example, the country’s suite of offerings is just the ticket.

The customer experience (CX)

Financial services companies increasingly emphasize customer experience (CX) to drive growth. They believe that positive experiences keep customers loyal and that the more enjoyable a company’s CX is, the more likely they will continue using the product. They also want to improve efficiency, reduce friction points, and provide a more personalized experience.

The financial services industry has had a unique set of challenges regarding CX. The industry has recently focused on improving customer centricity and building secure, accessible, and seamless experiences.

To create an omnichannel customer experience, financial services organizations must invest in the right technology and employee training. They must also collect and connect data from all their touchpoints and make it meaningful and understandable for employees.