We don’t know what 2022 has in store, but we’re keeping an eye on some key trends that are sure to shape the future of banking. Here’s what you need to know.
If the past 18 months have taught us anything, it’s that nobody knows for certain what the future holds. COVID-19 left no industry undisrupted in 2020, but banks faced particularly sharp declines and rapid changes. In fact, while almost half of the world’s major industries recovered seven months after the markets hit rock bottom, banking remained 19% below the pre-pandemic high.
Now that 2021 is winding down and companies have had a chance to re-adjust to the new normal of doing business, it’s time for banks to regroup and reevaluate. Here are four key trends that financial institutions should pay attention to as they gear up for 2022.
4 trends defining the future of banking
1. Digital-only banking
This trend has been a long time coming. Banking has been predominantly people-led for decades, but now the elements that made banks essential in the past—like bank balance sheets, interpersonal relationships, and access rights to payment rails—are either completely gone or can be digitized. As digital solutions, neo-banks, and “digital attackers” rise in popularity, brick-and-mortar banks should consider fortifying their digital-only options.
“This forced very rapid digitization, often using no-code tools, that helped eliminate manual and paper processes.”
“Pre-COVID, banks still moved a lot of paper. There were still a lot of physical processes. Then within several weeks, a lot of that—pretty much all of it—had to move online and had to move into a virtual model,” explained Chris DeBrusk (Partner, Oliver Wyman) at the recent Unqork Create conference. “This forced very rapid digitization, often using no-code tools, that helped eliminate manual and paper processes.”
A no-code platform like Unqork can help you quickly and easily build digital banking systems! We offer a Loan Origination turnkey application that expedites the review and approval process by aggregating an applicant’s information. Plus, our digitized solutions for client acquisition and digital onboarding help you build better customer experiences from the very beginning. You can also build management solutions on Unqork that help you flexibly handle all internal approvals, operations, and data-gathering processes.
2. Collaboration, not competition
In a competitive landscape full of digital-first startups and disruptors, many well-established firms feel pressured to prove they can offer clients anything and everything. After all, research has shown that 69% of millennials and 76% of Gen Zers prefer to work with a single financial institution. The only way to offer more services is to connect with other firms, and many financial institutions are now following this “win-together” mentality. PwC predicts that 82% of incumbents will increase their number of partnerships with newcomers in 2022 and beyond.
Integrations are key to building partnerships, connecting services, and giving clients more of what they want in one place. Unfortunately, integrations are often time-consuming and labor-intensive when using code-based web applications. On Unqork’s unified no-code platform, connecting to third-party systems and applications is easier than ever! You can even seamlessly integrate modern solutions with legacy systems at your own pace. Unqork’s enterprise-grade API functionality also makes it easy to securely link multiple services (and even other APIs!) into one single hub for convenience and easy compliance.
See for yourself how easy it is to set up integrations within Unqork.
3. New ways to pay
This trend is closely linked to digital-only banking. Online purchases are slated to increase in value to over $2.7 billion in 2022, and possibly even tip the value of e-commerce over $5.4 trillion in 2025. New ways to pay come with all of this shopping, from mobile wallets to mobile payments to contactless card payments. As this trend continues, it will become more important than ever to keep transactions safe and verify the identity of your clients.
At Unqork, security is at the core of everything we do. All our data is stored with MongoDB Atlas, ensuring AES256 encryption and TLS.12 HTTPS encryption for data at rest and in transit. We also leverage a highly available infrastructure designed to eliminate single points of failure, which are spotted through our failure detection capabilities that exist within each tier of your application.
Our no-code platform can also boost KYC (“Know Your Customer” or “Know Your Client”) capabilities through our Customer Onboarding Solution. This solution helps accelerate onboarding by digitizing workflows, minimizing repetitive data entries, and offering self-service portals that customers can use by themselves.
4. Self-Service Applications
Self-service applications have taken the world by storm over the past 18 months, and the finance industry is no different. The number of digital bankers will exceed over 200 million in 2022! In order for financial institutions to gain and retain customers, they must offer self-service banking options.
On Unqork, you can launch, build, and deliver digital self-service applications to manage payments, claims, and service transitions in as little as 8 to 12 weeks. You can also create a digital front door with “no wrong entries” to help clients quickly and securely connect with the right people for their needs. All consumer information is uploaded and applied digitally with all the right rules and regulations already in place.
Future-proof your enterprise with no-code
In today’s world of uncertainty, digitization, and rapid shifts in customer demands, no-code and banking are a perfect match. Using an enterprise no-code platform like Unqork helps you adapt to change and stay ahead of the competition. On Unqork, the only no-code platform built for the enterprise, banks can quickly and reliably supply their customers with the tools they desire. With seamless integrations, ready-made onboarding solutions, and strong security to back it all up, Unqork is here to support all your digital banking transformations for this upcoming year and many years to come.