The financial services industry is one that is constantly changing, especially with the advancements of technology and the rise of digitisation. 2021 has seen many major transformations in the space, with a few certain trends leading the charge.

Keep reading to learn what these trends are and how the financial services industry is currently changing.

Contactless and cashless finances

The 2020 coronavirus pandemic has changed the world to accommodate for social distancing and minimised direct contact. In the financial services industry, this has directly resulted in the rise of contactless and cashless finances. According to a forecast report by the Market Research Firm, the global contactless payment market size is expected to grow by $8 billion between 2020 and 2025, at a rate of 11.7% compound annual growth rate.

This trend affects not only individuals making payments, but also businesses. As more and more traditional financial players (such as banks) and other independent financial service companies introduce contactless and cashless features to their services, both individuals and businesses are looking to capitalise on the convenience and accessibility of such new facilities. In fact, many businesses are opting for contactless and cashless services such as virtual corporate cards for business purchases.

Work-from-home solutions

The financial services industry is also experiencing changes in internal operations, with the 2020 coronavirus pandemic shifting in-office work to work-from-home systems. Although no longer working together face-to-face, some employees have found increased productivity working from the comfort of their own home.

Not only has this many many corporate businesses in the financial sector providing VPNs for their employees working from home, many have also budgeted for ergonomic at-home set ups for their employees. Work-from-home solutions have risen to the forefront, especially for businesses in the financial services sector requiring high-speed connectivity, responsive computer systems and large storage spaces.

Incorporation of robotics and AI

Robotics and AI (artificial intelligence) are expected to be further incorporated into the world of financial services. This is especially the case as banks and other financial sector players digitise their systems to meet the growing needs of clients while also maintaining healthy profit margins. Robotics and AI also assist businesses in the financial services industry to meet their increasing legal obligations while still operating efficiently.

Robotics and AI are used commonly to power chatbots on financial sector business websites, as they help provide round-the-clock assistance to customers in a more personalised way. AI and robotics can also help with analytics and protection, to detect fraud and enforce any other regulatory compliances. Robotics and AI have triggered other innovations in the industry, including voice commerce, AI advisors and biometric-based authentication features.

Technology transforming the financial services industry

As technology continues to advance in ways never predicted before, the financial services space is also changing to incorporate more of such technology to grow effectively as an industry.

There are many trends involving technology which are transforming the financial services world today, including contactless and cashless payment finances, work-from-home solutions and the incorporation of robotics and AI. It is important to keep an eye on these trends as they are sure to influence the future direction of the industry, and many others as well.