Kristina Antonorsi Discusses Trends That Will Drive The Financial Industry in 2022

In 2021, the financial services industry was defined by a sudden acceleration in digitization and digital engagement. The impacts of the COVID-19 pandemic pushed this. Exchanges shut down their trading floors and moved to remote trading. Mobile banking transactions spiked, personal trading apps saw record transaction volumes, and call center personnel kept customer support going by working from their living rooms.

Kristina Antonorsi, an entrepreneur from Venezuela, believes that while the financial services industry could weather the digital tsunami and continue its operations, it has become clear that the winds of change are not transient. Financial institutions are now thinking strategically about their technical setup and questioning whether the tools that they have previously relied on are the right ones to use going forward. A few major themes will likely shape the financial services industry in 2022.

Modernizing Dated Core Systems Will Be Imperative

One of the most important trends is the need to modernize core systems. These systems need to be agile and scalable to meet the market’s demands. Failure to update these systems could lead to organizations being left behind in the competition.

Additionally, the demand for technology is continuing to grow. Kristina Antonorsi believes that as companies evolve into tech-focused entities, they create more allied roles that focus heavily on technology. These roles contribute to the overall growth of new technologies, increasing business productivity and revenue streams.

Further, growing consumer sophistication fuels the need for organizations to be digitally focused. Organizations can create more effective core systems relevant to their markets by paying attention to these trends.

Banking Goes Beyond Cash With Digital Engagement

Banking is going beyond cash with digital engagement, as contactless payments are already a way of life across Europe and Asia. Even in America, 27% of U.S. businesses reported increasing customer contactless payments due to the pandemic. Kristina Antonorsi believes this trend will continue in 2022, with 74% of global consumers saying they will use contactless payment methods even after the pandemic. Globally, the contactless payment market size is expected to grow from $10.3 billion in 2020 to $18 billion by 2025, at a compound annual growth rate (CAGR) of 11.7% during the forecast period.

According to a survey by " The Economist " Intelligence Unit, this trend is reflected in the financial services industry, with one-quarter of consumers planning to open their bank account online or via an app this year; according to "The Economist" survey, Intelligence Unit. According to other studies, 37% of U.S. millennials already use mobile banking apps, while only 16% used online banking in 2018, up 10% the previous year. Digital engagement will continue to increase among consumers and businesses alike in 2022 as more people look for complete ease of use when managing their finances digitally. 70% of global consumers who use finance apps report that they want them to automatically update on all devices they own (the number is around the same amount globally).

Insurance Becomes Personal

As we move into 2022, it's clear that the most successful companies in the financial services industry will be those that can personalize their products and services for their customers. Kristina Antonorsi believes that this means building a technology infrastructure that can quickly process vast amounts of data from various sources to provide real-time insights.

AI-powered data analytics will be essential for creating contextualized interactions with customers across the entire insurance life cycle, from sales and underwriting to claims management and support. So if you're looking to stay ahead of the curve in the financial services industry, make sure you're looking at ways to personalize your product or service offering.

Institutional and Wholesale Trading Moves Off Trading Floors

The wholesale trading industry is moving away from traditional trading floors and digital trading. This shift is being driven by new technologies that allow traders to work anywhere, regardless of their location. This change will require financial institutions to update their operational resilience plans to account for global and regional infrastructure failures.

Work-From-Home Must Work Across Financial Services

Work-from-home must work across all areas of the financial services industry to be effective. Throughout 2021, widespread stay-at-home restrictions challenged businesses everywhere to keep employees engaged, productive and connected. With the pandemic, as corporate offices became unavailable overnight, the entire financial services workforce—from traders to bankers to support personnel—relied on their at-home internet connections along with existing VPN and virtual desktop infrastructure solutions to do their work. While it got the job done, the ability to maintain a constant connection with the office was of little benefit if employees could not respond to requests or resolve issues promptly.

Embedded Innovation is the New Status Quo

Embedded innovation is the new status quo for financial services institutions. 2021 proved that agility and innovation, done right, is a game-changer, and the speed at which the industry transformed to help their customers through the pandemic is the speed at which they want to continue operating. To create a culture of innovation embedded into an institution's corporate culture, financial services institutions must work with vendors, regulators, and supervisors to create safer, cheaper, more inclusive, and more equitable financial markets. At Google Cloud, we work with our customers across financial services to help them prepare for the future through our technology, tools, and innovation partnerships.

Final Thoughts

The most successful companies in the financial services industry will be personalizing their customers' products and services. This means building a technology infrastructure that can quickly process vast amounts of data from various sources to provide real-time insights. AI-powered data analytics will be essential for creating contextualized interactions with customers across the entire insurance life cycle, from sales and underwriting to claims management and support. So, if you're looking to stay ahead of the curve in the financial services industry, make sure you're looking at ways to personalize your product or service offering.

This article does not necessarily reflect the opinions of the editors or management of EconoTimes