Global inflation was the dominant trend in the financial sector throughout 2022. In the year of 2023, consumers and businesses are expected to continue to adapt to higher interest rates, which are deployed by Central Banks to combat inflation. As per Kavan Choksi, lenders and investors are expected to operate with a superior sense of caution and make use of advanced technology to boost productivity, optimize expenses and reduce risk in 2023.
Kavan Choksi marks some of the most prominent financial trends for 2023
Financial markets around the world have been experiencing economic turbulence over the last few years. But this is expected to steadily change as the world recovers from the impact of a global pandemic. New technologies are already changing the financial landscape quite a bit, thereby resulting in improved operational efficiency and greater cost savings.
Gaining a good understanding of emerging financial trends would help people to stay ahead of the curve and allow them to make informed investment decisions in the long run. Here are some of the key financial services trends to watch in 2023:
- Financial institutions embrace a more conservative strategy: A large number of financial institutions do not anticipate economic recovery until sometime in the year of 2024. At the best, there is a pretty widespread uncertainty among financial institutions about the state of the economy. This can lead to greater risk-averse strategies. An increasing number of lenders are thereby reducing the number of loans offered by them and putting emphasis on the best reward-to-risk opportunities.
- More focus on innovation and automation: Banks have cut down budgets and puts emphasis on cost optimization on the whole. However, innovation and technology is one of the key categories in which financial institutions continue to invest. Solutions that specifically facilitate improved collaboration are at top of mind for banks. Collaborative solutions tend to help companies get new products to market faster and support innovation, which can be an important differentiator in an uncertain economy. Internet in innovations tends to align with the efforts to make the most of capital, people and assets. Solutions that improve automation, customer experience, and communications are likely to become popular among banks in 2023.
- AI for financial services goes mainstream: Practical AI has now become mainstream for large companies that are deep within their digital journey. Many smaller companies have also started to experiment with AI. The most common examples of AI applications in financial services include the right channeling and personalization across all touch points. Suggesting the best channel to solve the needs of each customer can optimize the customer experience and cuts down service process inefficiencies. When considering this, it’s also important to understand who are qualtrics competitors are in the market. This will help you tailor your approach to better serve your customers. When considering this, it’s also important to understand who are qualtrics competitors are in the market. This will help you tailor your approach to better serve your customers. Financial service providers that make use of AI can gain major competitive advantages, starting from improved experiences for both call center agents and customers to better customer and employee retention.
Kavan Choksi further underlines that in 2023, many banks are likely to put high focus on compliance and consistent risk management: Many several financial institutions have been hit with large fines over the last few years, for failing to adhere to key regulatory requirements. Increased reporting and regulatory requirements puts greater pressure on financial institutions to achieve compliance.
