Adopting new digital technologies can help your finance brand address and remove consumers’ pain points, quickly and easily. In turn, by making money management easier for consumers, you can improve your finance brands’ overall customer acquisition and retention process. Yet, according to recent research by Cornerstone, finance organisations aren’t as far ahead as they believe in their digital transformations. So, what emerging technologies does your finance brand need to know about in 2022?
Top 5 emerging technologies for finance brands
Adopting new technologies early can set your finance brand apart from the competition and help to address consumer pain points, like poor customer service. In 2022 the top five emerging technologies for finance brands include:
- Cloud computing
- APIs
- Robotic process automation
- Chatbots
- Machine learning
“ 70% of businesses say their current technology infrastructure is a barrier to digital transformation.”
Cloud computing
Cloud computing can enable your finance brand to be agile in the face of large-scale change, without incurring high costs. Systems like Google Cloud or OMI offer secure ways of reducing cost, managing risks and compliance issues, and improving revenue, depending on how they’re implemented. According to Deloitte, there will be a tremendous acceleration in cloud computing in the next 12-18 months.
APIs
Application Program Interface technologies began popping up in 2021 but will soon skyrocket in importance in 2022. API technology enables your finance brand to link your database with other applications or programs. API technology can transform your customer experience model. Some ways APIs can improve your customer experience include:
- Account authentication
- Payment processing
- ATM or branch location software
- Credit score checking
- Loyalty programs
- Link services to fintech apps
When employed innovatively, APIs have the power to increase a bank’s revenue by 20% when implemented.
Robotic process automation
Robotic process automation (RPA) is an emerging technology designed to help your finance brand focus on what matters, like innovation. RPA technology completes the lower-value, repetitive work that bogs down many employees. By moving this work to these software robots, your finance brand can improve all areas of your business. Benefits of RPA technology include:
- Accelerates transformation, with 63% of global executives saying RPA is a major component in digital transformation
- Increased revenue and cost savings
- Improved productivity
- Greater accuracy with 57% of Forrester survey respondents saying RPA reduces manual errors
- Increased focus on valuable work
- Happier employees. 57% of executives say RPA increases employee engagement.
Chatbots remain one of the top emerging technologies
Chatbots are beginning to become the norm. If your finance brand hasn’t yet implemented them, you’re losing out to the competition that is. While 56% of banks and credit unions have created a digital transformation plan, only around 25% of them have implemented chatbots.
AI technology can help your customer service operate quickly and seamlessly, as it’s a way in which simple customer queries can be answered fast. In fact, 74% of users prefer to use a chatbot when looking for simple answers. They can also support the customer journey and help to convert leads, with 41.3% of consumers saying they use chatbots to make a purchase.
Machine learning
Financial organisations around the world are seeing the benefits of machine learning, with the percentage of finance brands implementing it in 2022 predicted to triple. By implementing a machine learning algorithm, that can analyse and learn consumers’ habits and behaviours, your finance brand can create tailored content and services that convert customers.
At the heart of it, machine learning optimises the customer journey empowering finance brands to offer greater customer service, cross-sell and up-sell their products, and build a highly personalised customer experience.
Barriers to implementing emerging technologies
With 70% of businesses saying their current technology infrastructure is a barrier to digital transformation, finance brands wanting to implement emerging technologies need to look at what they’re doing now that could hold them back. To see the full benefits of integrating emerging technologies, your finance brand may need to do a complete overhaul of your current technology setup. While this can be a daunting task, not doing it now will see your organisation be held back in the future while your competition flourishes.
These emerging technologies are on the path to becoming mainstream and it’s critical your finance brand implement them sooner rather than later if you want to remain competitive.
