Why BFSI professionals should stay abreast of trends in banking

The new-age banking, financial services, and insurance (BFSI) sector has undergone major transformations by becoming more technology driven. Revolutionary advances in banking and finance, such as omnichannel banking, AI, and Blockchain-powered financial services, are redefining BFSI operations by putting clients at the forefront of their present and potential goals. The future viability of BFSI professionals and their employers hinges on their knack for effortlessly keeping up with evolving trends. BFSI experts offer inventive approaches, pinpoint and manage client concerns, reduce possible risks, and avert legal and financial repercussions by comprehending the most recent technologies, consumer behavior, and regulatory requirements. 

Shift in the banking industry 

Over the years, the banking sector has seen substantial shifts as a result of breakthroughs in technology, altering consumer preferences, and shifting regulatory needs. Banking used to be predominantly a brick-and-mortar industry where clients would visit actual locations to transact business and acquire financial services. The role of technology in the BFSI sector has proved to be a boon. Customers can now access a variety of financial offerings from anywhere, thanks to the emergence of mobile and online banking. Additionally, personalized services, fraud detection, and risk management have all been made possible by the adoption of artificial intelligence and machine learning, which have radically altered the banking sector. Consumer behavior is undergoing shifts and as a result, digital-only banks and fintech businesses are becoming increasingly prevalent. 

Also read: How analytics in banking and finance opens doors to lucrative job roles in banks

Trends in banking that BFSI professionals should be aware of

The shift to digital technology has led to a new phase of competition among seasoned financial service providers. Banks are being pushed harder to become “digital first” enterprises to thrive. Discussed below are a few emerging trends in the Indian banking sector for 2023.

• Seamless integration 

This trend entails the seamless integration of divergent industry systems, technologies, and procedures to create a unified and interwoven ecosystem. Banks may dramatically improve operational effectiveness, upgrade customer experience, and fuel ingenuity by integrating key elements including core banking infrastructure, client relationship management systems, payment platforms, and digital channels. This integration empowers banks to draw informed choices promptly and provide customized offerings via real-time data transmission, better workflows, and automated procedures.

• User-friendly experience 

Recognizing the rising expectations of tech-savvy customers, financial institutions have invested in creative technologies and streamlined operations to improve customer convenience and accessibility. Banks are aiming to build smooth experiences that respond to the individual needs and interests of their clients, from easy mobile banking apps to personalized digital offerings. Even customers don’t want to step out of their homes since digitalization has solved all physical barriers. It has enhanced customer experience and this trend will be prevalent across industries.  

• Open banking 

Open banking comprises the secure exchange of client data with authorized third-party providers via APIs (Application programming interfaces), facilitating the development of novel banking services and products. It encourages competition, stimulates innovation, and elevates customer preference by enabling users to provide authorization for their financial data to be shared. Open banking encourages collaboration among conventional banks and fintech startups, fostering relationships and sharing strategies that meet changing consumer demands.

• The use of big data & analytics 

Big data and analytics have become indispensable assets for banks, enabling them to attain flawless operations, mitigate pitfalls, and provide exceptional customer-centric solutions. This potent mix has resulted in significant changes in how banks function and aid their consumer base. Financial institutions may unearth important insights by exploiting the massive amount, velocity, and diversity of data accessible, allowing them to formulate intelligent choices and propel business achievement. 

• Advanced banking apps 

The proliferation of revolutionary banking apps is now a prevalent trend, providing users with unprecedented financial autonomy. These cutting-edge offerings provide a comprehensive set of features, allowing users to execute a variety of banking procedures at their leisure and without requiring considerable assistance. Individuals may easily access and manage their bank account balances, past transactions, and detailed statements on their gadgets, thanks to intuitive user interfaces. Real-time notifications play essential for notifying users of any account activity while ensuring full openness and oversight over their financial matters. 

• Blockchain technology 

The decentralized and inert architecture of blockchain technology assures high levels of transaction transparency, security, and performance. Banks can use blockchain to simplify and accelerate procedures such as cross-border payments, trade financing, and identity verification. The elimination of intermediaries not just lowers expenses but also minimizes the danger of fraud and improves data integrity. 

Why BFSI professionals should keep up with trends

The future of the BFSI sector in India is promising as firms work to speed up their digital transformation initiatives to meet the needs of an increasingly tech-savvy clientele. Following are a few compelling factors that require BFSI employees to be abreast of the most recent shifts in the sector:

• Changing job landscape 

Professionals must keep up with developments to stay up-to-date and competitive in the BFSI sector’s changing employment landscape. The trends that call for professionals to stay educated include technological developments, shifting consumer tastes, and changing regulatory needs. Individuals who don’t stay current with trends run the risk of becoming outmoded and may have complications finding employment. Those in the BFSI industry who keep up with trends can use technology to improve operations and cater to shifting client expectations.

• Digitalization in banking 

Digitalization has completely reshaped the banking industry by facilitating banking process automation, boosting client experiences, and raising efficiency. The availability of financial services around-the-clock, thanks to online banking, banking apps, and digital wallets has enhanced consumer satisfaction. Digitalization has also improved operational efficiency by automating tedious operations, minimizing paperwork, and enabling quicker transaction processing, thus resulting in increasing banks’ productivity. BFSI professionals who stay current with the latest advances can leverage technology to optimize their workflows and offerings, increasing their worth to their employers.

• Improved job opportunities 

Fintech and the rise of digital banking have completely changed how banks function and interact with customers today. This has given rise to the need for competent individuals with expertise in AI, data analytics, cybersecurity, and customer experience management in the banking sector. Specialists in risk administration, compliance, and regulatory affairs are also sought as a result of the expansion of foreign markets and the multifaceted nature of financial rules. Overall, these new trends have produced a wide range of employment opportunities and career options, providing BFSI professionals with chances to contribute their knowledge and spur invention in the banking industry.

Read more: The most in-demand FinTech jobs and skills in 2023

• Increased competition 

BFSI sector growth in India is propelling as the BFSI industry is seeing greater competition from both traditional and non-traditional entities in the current global economy. BFSI personnel must keep up with the most recent developments and advancements in the sector to be competitive. The inability to adhere to trends can cause businesses to lag behind rivals and lose market share. Staying up with trends further demonstrates an eagerness to grow and evolve since companies in the BFSI sector are increasingly seeking employees who can bring novel perspectives and concepts to the table. 

Also read: How can TAPMI’s online MBA-BKFS candidates switch to managerial roles in the banking sector?

Pursue an online MBA in BKFS from TAPMI 

The online MBA in Banking and Financial Services program offered by TAPMI through Online Manipal  is open to working professionals who want to enhance their skills and expertise in the financial services sector. Working professionals could stay on the leading edge of the current advances, thanks to the flexible curriculum layout. The program provides four industry-focused elective baskets-  Banking, capital markets, advanced corporate finance, and analytics for banking and finance to assist working professionals in advancing to leadership and managerial positions in the BFSI sector. The program is specially tailored to suit working professionals who are looking for the necessary push to enter leadership roles in the BFSI sector. The course will assist working professionals in gaining mastery over key facets of the BFSI sector, including advances in the new-age banking environment, cryptocurrencies and blockchain technology, and the banking industry’s digitization.