As we all prepare for 2022, here are our Top 4 Takeaways from this year’s event:
There was a lot of discussion at this year’s conference about how Crypto/BlockChain will affect traditional banking. While many we’re still uncertain about the future of crypto, one thing was clear; banks need to begin adapting. Adapting to include cryptocurrencies and managing the risks that come with them is an opportunity for banks to capitalize on this sector of asset management and has the potential to expand customer reach.
- Transition to CloudBanking
Many industry leaders pointed out that there has been an increase in people transitioning from traditional core banking to banking services providers (BaaS). This transition is a big deal for traditional banks since they’re typically more conservative in nature and rarely willing to allow customer data outside of the “four walls” of the bank. Traditional banks now need to become more educated in core processing alternatives to remain competitive with emerging banking alternatives.
Many banks are currently looking for ways to attract customers that are considered ‘underbanked.’ As more market opportunities continue to emerge and as things get more and more competitive, banks need to figure out how to address the “underbanked” so that they can take part in financial services. New risk management strategies are also a large part of the discussion as it may be difficult for financial institutions to attain documented financial information on underbanked individuals.
- Customer Experience
Investing in the overall customer experience is a crucial element for retaining current customers as well as attracting new ones. Banks are now moving toward more low touch, high-speed onboarding of customers across the industry and becoming less intrusive when verifying clients. This will make getting started with a new bank a lot smoother of a process on both the customer and the bank’s end in the years to come. COVID-19 has also forced banks to increase their digital financial services offerings to their customers. It’s projected that banks are going to continue the trend toward digital interaction with clients and are looking to expand digital offerings, in addition to improving already digitally-focused solutions.