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Emerging trends in banking

Coping with emerging trends in retail banking 2020

Although many have predicted the doom of traditional retail banking with the rise of new entrants especially in fintech that focuses on superior customer experience, we believe that traditional banking companies still have a bright future. The emerging trends in retail banking such as AI and RPA are aimed at enhancing customer experience and matching performance with that of innovators in the banking industry. Apart from these, we can also expect several transformations in the approach and operations of banking companies. Infiniti Research has worked with dozens of banking companies across the globe and played a pivotal role in helping them to adopt agile business strategies to survive the dynamic market conditions. Based on our observations and expertise, here are some of the emerging retail banking trends that players need to be prepared for in 2020.

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Emerging trends in retail banking 2020

Emerging trends in retail banking

Reorganizing around customers rather than products or channels


In 2020, an interesting emerging trend in retail banking that we can expect to see is that banks will gradually move their focus away from products and services and begin organizing themselves around creating exceptional customer experiences. They will aim to develop the ability to view customers as a single unit by recognizing their uniqueness and tailoring offerings to suit their needs rather than being ‘pushy’ to buy banking products or avail different services.

The growth of social media

Social media is not just one of the emerging trends in retail banking, but it has become widely popular across industries. In 2020 and beyond, retail banking companies will embrace social media platforms as a primary source to connect, engage, inform, and understand their customers. It is also expected to become an important platform where customers research banking products/ services and make a purchase decision. Mastering social media capabilities will be a core competency for retail banking companies to cope with the emerging trends in retail banking.

As the pace of change is increasing in the retail banking space, companies must ensure that they are well positioned to align with the emerging trends in retail banking. Get in touch with an expert to learn how we can help you stay updated and cope with the retail banking trends.

Cybersecurity in building customer trust

Security of transactions is one of the most crucial factors that banking customers consider while choosing their banking partner. To avoid cybersecurity glitches that have occurred in the past, we can expect to see several top banking companies investing heavily into preventing cyber-attacks. This year onwards, you can expect to see leading banks develop cyber-security strategies that are aligned with their business objectives, risk-management protocols, and regulatory requirements. Since several retail banking companies lack the ability to tackle this issue, they might partner with third-parties to provide cyber-security assistance.

Two factor authorization to become common in transaction authorization

Although biometrics is believed to be unique, it can often be replicated and can result in fraud. As a result, two factor authentications will soon become mandatory and one of the most notable emerging trends in  retail banking industry. This means though retail banks will allow fingerprint or voice recognition in transaction authorization, it will remain tied to a replaceable physical device such as a smartphone.

Know more about our services for companies in the retail banking sector.

The Evolving Retail Banking Landscape in Canada

Retail banking

Over the past couple of years, Canadian banks have set a global standard for their stability and best practices. However, the pressure on retail banking companies and other financial institutions in Canada remains high. This is making innovation and customer satisfaction more important than ever before for players in the retail banking sector. Innovators in the retail banking industry are moving towards a seamless, one-stop-shop approach to service and engagement via digital platforms that bring products and services together to provide a unified customer experience. Interestingly, technology is not the only factor that’s disrupting the industry; it is also characterized by the rising need for customer-centric experiences, and this is driving every transaction and touchpoint for companies in the sector. Here are some critical retail banking trends that experts at Infiniti expect will lead the momentum of the financial sector in Canada.

Canada’s retail banking sector will see several opportunities to capitalize on and challenges to dodge this year. Not prepared with the right strategies to thrive? Request a free proposal to know how our solutions can help you keep a close watch on the market and formulate effective strategies to succeed.

Retail banking trends in Canada

Unbundling services

Canada will soon be exposed to open banking regulations that will fragment traditional retail asset and liability gatherings. Open banking refers to common interfaces among banks and third parties to facilitate more competition and also create new business opportunities. Although retail banking companies had sought a vertical approach that offers services from top to bottom over several decades, now several new entrants in the retail banking industry want to be ‘horizontal’ and dominate an attractive specialty.

Planning to Invest in Canada’s retail banking industry? Get in touch with our experts for more insights on the benefits of leveraging our solutions for better decision-making and choosing the right market entry strategies.

Rising interest rates

Interest rates are gradually rising from historic lows and consumers are soon bound to be challenged by debt levels. The retail banking industry will reflect the changing environment with an increased focus on the impact of rising interest rates, transparency in lending, and innovative new value propositions. The continuing rise in rates may result in personal loan offers to decline, however lending solutions such as installment loans and point-of-sale financing will shift the market towards time-sensitive credit sources.

Platformification

Innovation is vital for retail banking companies to effectively meet consumer demands. The financial services industry in Canada now largely revolves around the digital age and rising consumer expectations of convenient and frictionless digital access. As a greater number of consumers seek streamlined solutions, retail banking companies in Canada will soon shift their focus to providing ‘one-stop-shops’ that bring both products and services on a single platform.

Learn more about Infiniti’s solutions for companies in the retail banking industry.

financial services industry

Enhancing Market Share by 31% for a Retail Banking Industry Client – Market Research Study

Retail Banking Industry Overview

Despite several uncertainties in the financial sector, the retail banking industry in the US has been experiencing positive growth. However, the industry is not free of challenges. Companies in the retail banking industry are facing a new set of challenges over the past decade including rising competitive pressures, organizational obstacles, and customer experience management hurdles. Moreover, with millennials and Gen Z consumers becoming the highest-earning groups soon, companies in the retail banking industry are compelled to adapt their solutions to match young customers’ digital preferences and needs.

RETAIL BANKING INDUSTRY

Recent studies show that around 70% of companies in the retail banking industry have adapted a customer-centric business model. So, have you revamped your traditional banking models to meet the demand of the rising population? If not, our market intelligence experts can help. Request a FREE proposal.

Business Challenge

The client is a retail banking company based out of the United States. The rising competition from community banks, FinTech organizations, and national banks made it difficult for the client to acquire new customers. Also, with the amount of turbulence in the U.S. political landscape, navigating the regulatory and compliance landscape was becoming challenging for the company. Furthermore, the client faced difficulties in creating a personal connection with customers in an increasingly digital world.

As such, the client approached the experts at Infiniti Research to leverage their expertise in offering market research solutions. With Infiniti’s market research solution, they wanted to keep pace with the retail banking industry trends and innovations to serve customers better and build more advanced information security systems. Furthermore, they wanted to win market share and improve customer experience by delivering personalized banking services.

Traditional, time-intensive market research cannot help you to keep up with the needs and demands of a more demanding, smarter world. Contact us to know how our custom market research solutions can help you gather data-driven insights into a new or existing market.

Solutions Offered

As a part of the retail banking industry analysis, the experts at Infiniti Research conducted a competitive intelligence study. Factors such as competitors’ services, communication channels, customers, and pricing structures were taken into consideration. Also, our experts conducted a comprehensive market scanning and monitoring analysis. This phase of the engagement helped the client to identify the retail banking industry size and understand the regulatory landscape in the US.

Furthermore, a customer intelligence study was conducted to help the client understand their customers’ needs and devise personalized service offerings for them. Also, by understanding the latest market trends and innovations, the client was able to change their processes in order to adapt to the fast-changing marketplace.

Results Obtained

With our market research solution, the client was able to optimize their processes, reduce cost, and better serve customers. Also, by keeping pace with the market transformations and trends, the client was able to speed-up decision making and sustain a leading edge in the US retail banking industry. Furthermore, by understanding the entire customer lifecycle, they were able to drive better customer experience, increase customer loyalty, and reduce customer churn.

The company in the retail banking industry was even able to eliminate cyberthreats by building a more advanced information security system. With Infiniti’s market research engagement, the client was also able to devise personalized service offerings for their lucrative customer segments. In addition, the company was able to enhance their market share by 31%.

To sustain a leading edge in today’s competitive marketplace, companies in the retail banking industry will need to keep pace with the market changes and differentiate their service offerings. Request for more info to gain detailed insights into the US retail banking industry.

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