Financial Services
Financial Services
Financial services
Introduction
• Financial services refer to
services provided by the finance
industry.
• Insurance Services
• Corporate Services
1. Banking and Digital Payments: Financial services include traditional banking like savings and checking
accounts, along with digital payment options like mobile wallets and apps to make electronic transactions.
2. Investing and Wealth Management: You can invest your money in things like stocks, bonds, and
property. Wealth management services help people manage their investments for the future.
3. Insurance for Protection: Financial services provide insurance to protect against unexpected events,
such as health issues or accidents. It offers financial security when things go wrong.
4. Borrowing and Lending: You can get loans or credit cards to access funds for things like buying a home,
starting a business, or managing expenses. Financial services offer these lending options.
5. Planning, Security, and Support: Financial services help you plan your financial future, keep your money
safe, and provide customer support when you have questions or need help with your finances.
Effect of Technological Trends
• Agile and adaptive banking
• Hyper personalization in the banking industry
• Artificial intelligence in the entire banking industry
• Open banking and embedded finance
• Payments 4.X as a trend in banking
• Hyper-automated banking with Robotic Process Automation
(RPA)
• Low-code or no-code platforms
• Buy Now Pay Later (BNPL) 2.0
• Regulatory Technology (RegTech)
• Metaverse in finance
Technological Trends
• New technological developments are redefining our
approach to finance.
• 2. Adapting for Survival: Traditional financial firms like banks and insurance companies have
to be flexible and nimble, meaning they can change and react quickly to stay in business.
• 3. Big Changes Coming: A research study suggests that by 2030, around 80% of traditional
financial institutions might not exist anymore. That's a huge change in the industry.
• 4. Going Agile to Improve: The study also found that many banks and FinTech companies
want to improve their financial services by using agile methods. This means they are trying
to become more flexible and quick in how they do things to make their services better.
Hyper personalization in the banking industry
• People want personalized digital experiences, even in banking. When banks
recognize your past interactions and predict what you might need in the future, it
keeps you happy and loyal. This personal touch not only makes customers happy
but also helps banks make more money. By teaming up with FinTech companies,
banks can offer these personalized services to users.
• Today, people, banks, and FinTech companies are using special
tools called APIs to share information. The goal is to offer
personalized experiences to customers, no matter where they
are in their digital journey. This trend is likely to continue, and
we'll see banking services integrated into various aspects of our
daily lives.
Artificial intelligence in the entire banking industry
• Another of the key banking technology trends we can expect to
see in recent times is the increased use of artificial intelligence in
banking.
• What is the reason behind such rapid growth and why are
these technologies coined as financial services trends?
• Similarly to AI, ML, and open banking, the financial services
industry has been using hyper-automation for a long time.
• The institutions can tap into Big data analytics, thus generating
new revenue streams and making more informed decisions
after getting insights from AI, ML, and RPA.
Low-code or no-code platforms
• The fiercely competitive industry environment in the e-
banking sector requires openness and access to modern
methods to build digital solutions.
• This compares with a share of less than 25% in 2020. The trend
is mature enough to support such processes as customer
onboarding and offer a wide range of add-on products.