6 Predictions for Banking in 2022 | Banking Advice 2022

6 Predictions for Banking in 2022 | Banking Advice 2022


Top 6 Predictions for Banking in 2022. What’s your advice for banking this year? You will find the answer in the article of HDBank Career.

The coronavirus pandemic has turned the world upside down, and some aspects of the way consumers conduct their financial lives may be changed forever. However, if there is any sign of it all, some of those changes will be positive as we head into next year.

6 Predictions for Banking in 2022 | Banking Advice 2022

From policy innovations to advances in digital banking, here’s what banking experts predict for 2021.

Biden administration will invoke new banking policies

Over the past four years, a number of major policy changes have been enacted that have impacted the banking industry. Overall, the new Biden administration is likely to more closely monitor the financial services industry at the federal level, said Catherine Brown, an adviser to investment and consulting firm Klaros Group.

However, the economic problems caused by the pandemic will continue into 2021. The administration will likely immediately focus on providing additional financial support for individuals and small businesses, followed by a comprehensive infrastructure package, she said. Priorities will likely include undoing some changes made by the Trump administration, such as moves to stop the Consumer Financial Protection Bureau and reversing short-term lending rules.

Banks will be creative about incentivizing savers

In the face of financial turmoil caused by the pandemic, the Federal Reserve has stepped in with emergency measures to keep the economy afloat. That includes lowering the federal funds rate target below 0.25%, the lowest level since the Great Recession. The Fed said it intends to keep interest rates near zero until at least 2023.

That’s great news for anyone looking to borrow money, but savers have seen their interest rates drop to almost nothing. As a result, banks will have to find other ways to incentivize deposit and prize-linked savings as one of the options that will grow in 2021, said Adam Moelis, co-founder of Yotta Savings.

“Retail banking customers will be looking for new, innovative ways to earn interest on their savings.… What you will see banks doing is enhancing the savings experience, so instead of pay people a meaningless interest, they will compound the interest, Moelis said.

Contactless payments will be more popular than ever

According to Allison Beer, head of digital at Chase Bank. “We expect consumers to continue to use digital payments more often in the new year,” she said.

In fact, according to data collected by Chase, 30% of peer-to-peer payment users have signed up within the last six months, while 45% of long-term users are relying on this form of payment for more than a year . formerly. The use of tools like PayPal, Venmo, and Zelle will continue to increase in 2021 as consumers and small businesses become more comfortable with the idea of ​​going cashless.

The customer experience will be very virtual

It’s not just payments that have gone digital. With social distancing a key measure to combat COVID-19 exposure, businesses have had to get creative about how they interact with customers – including banks.

“As more people, both consumers and commerce, are doing business from their homes, banks and financial institutions will continue to enhance the online experience so that it replicates the in-store experience.” Priya Iyer, CEO of Vee24, a customer engagement division, said the platform.

According to Iyer, services like live video chat and collaboration technologies like high-performance co-browsing, secure form filling, and secure file transfers will become ubiquitous in the coming year. “These tools enable digital holdings in complex processes like applying for a mortgage or commercial loan, helping to reduce errors and friction for both customers and bank representatives.”

Physical branches will become a thing of the past

With a heightened focus on mobile apps, contactless payments and other digital services, banks will be better able to satisfy their customers in a virtual way. But even if a successful vaccine for COVID-19 is developed and distributed, the convenience and speed of virtual banking will make it less likely for consumers to visit physical bank branches because of their financial need. their main.

According to a PwC Survey During the spring, the pandemic caused about a quarter of consumers to prefer online banking to a branch, accelerating an already existing trend.

“With self-service technology covering most of their needs, the average customer can go to the bank without a physical branch,” Blake Morgan, a customer experience futurist, wrote at Forbes in March.

Identity theft will be rampant

While the rise of digital services makes banking more convenient, secure and accessible for many, it also opens the door to more fraud. Giselle Lindley, principal fraud advisor for ACI Worldwide, a payment services firm, said: “Because more Americans will make their financial lives online in 2021, it is also likely that there will be increased identity theft due to data breaches and social engineering scams.

“Many people are experiencing social isolation and unemployment, and are therefore vulnerable to emotional fraud, fake job advertisements, and offers of support or stimulus payments,” she said. speak. “Others are simply spending more time on online entertainment, where scammers are lurking with fake investment deals and gifts, all with the aim of convincing victims to unquestionably hand over financial details and other sensitive personally identifiable information.”

Good news? According to Lindley, increasing pressure will come from consumer protection regulators on financial institutions to be responsible for protecting customers from fraud and liability for losses.

Overall, we hope this article has provided you with useful information about 6 Predictions for Banking in 2021. Let’s read more related posts in banking.

Read Also :
Join Telegram group
Previous Post Next Post