Many see 2020 as a year “stained” with economic hardships and social alienation. But in the financial technology sector, 2020 is just the opposite. 2020 has been an incredible year of innovation: with the acceleration of banking digitalization, and numerous new products and services to aid economic recovery and the new reality of virtual living and working.
This new context of a virtual world has redirected the digital strategy of banks and their traditional banking business models. The rise of digital banking through the web and mobile digital channels has optimized these platforms and changed the customer engagement strategy. It has also indirectly lead to more financial inclusion, now the unbanked and underbanked have even easier and cheaper access to financial tools.
Key Learnings from our 2020 Pulse Report
Every year COBIS publishes a Pulse Report highlighting the financial technology trends with a focus on Latin America. However, this year’s results reflect the same analysis we have been observing throughout the world, a need for: an increase small and medium business (SMB) lending; further digital payment development(digital wallets, instant payment apps, etc.); and more innovation in the creation of financial ecosystems(that promote e-commerce). These observations demonstrate that although there has been a global acceleration in digital innovation, there is still have a long way to go. And on the bright side, the future of the financial technology sector is even more promising, as the financial customer and realities of the financial environment continue to change, the financial technology sector will have the opportunity to introduce new profitable products and services.
Customer-Centric Innovation is Key
As children we were always told to focus on the why. So, what is the why of all this innovation? The customer. They are the faces behinds SMBs, payment apps, financial ecosystems, and financial inclusion: their needs and wants are what ultimately drives financial growth. To make things more complex, the new customer profile is more demanding than ever before. Here are the three main need areas of today’s financial customer: (1) omnichannel accessibility: people around the world have embraced digitization, using cellphones, computers, and other digital devices to access financial information and make banking transactions; (2) constant availability: a new need for 24/7 support and access to perform their banking needs; and lastly, (3) flexibility and reliability: financial tools must be accessible from anywhere, online or offline, whether in skyscraper in Latin America or in a safari in Africa.
What can Financial Businesses Do?
More digital transformation investment can make the needs of today’s customers a reality. But this is not enough. Financial entities need to see this as a continuous process, for as they “catch up” to the evolving needs of the customer, technology also advances (for example quantum computers and AI realities). Therefore, what providers really need is financial agility, in order to consistently meet the needs of the customer. At COBIS, we have coined this term to explain our holistic offer: a combination of the best technology available, technical and professional expert support, and proven work methods to enable your innovation and business outcomes, and most importantly to empower your future as a leader in the field. To learn more about our solutions, we invite you to visit our website.
Looking to learn about other key financial technology trends? Here is our latest blog.