Financial services have demonstrated their ability to successfully manage unprecedented levels of uncertainty over the past two years. Maintaining business as usual under extraordinary and unknown circumstances required the rapid deployment of digital tools to address virtual sales, improve collaboration, and upgrade enterprise networks and security. Through a combination of courage, determination and a willingness to innovate and embrace new technologies, the industry has emerged on the other side of the pandemic stronger than before.
Looking ahead, 2023 promises more regulations and transparency requirements due to geopolitical and economic challenges, including the war in Ukraine, demand for more sustainable practices, rising inflation, continued supply chain disruption, and the possibility of a regional or even global recession.
Lessons learned by BFSI leaders since 2020 must be applied to address these challenges and identify opportunities; using smart strategy and execution, focusing on technology, risk, regulation and purpose. Leaders will leverage cloud capabilities for more core and non-core workloads. Combined with legacy decommissioning, this change will reduce businesses’ operational costs and allow them to remain agile and responsive to rapid market changes. The use of automation will also increase, improving business efficiency and enabling the creation of smart processes. This will be key to surviving a year that is likely to be characterized by thin margins.
In addition, new technologies including big data, artificial intelligence, machine learning, deep learning, the metaverse and other complementary technologies such as robotic process automation (RPA) will be increasingly adopted in the financial services and payments industry.
The “new normal” could fully emerge in 2023. We will have the opportunity to define a future where profit and purpose are intertwined. To move the financial services industry forward, leaders must be poised and prepared.