2021 has been a challenging year across the financial services industry, but these challenges have also continued to drive long-overdue modernization and digitization when it comes to the technology banks rely upon to do business. J.P. Morgan-backed Mosaic Smart Data predicts the following technology trends are set to continue reshaping the landscape for banks across the globe in 2022.
Decision intelligence will become increasingly critical: In unpredictable market conditions, the ability for banks to use the information at their disposal in order to decide upon the most relevant trading opportunities for their clients, at the right time, has become both a key competitive differentiator and driver of profitability. At the core of decision intelligence is the ability to process and use transaction and external data efficiently, and then apply advanced analytics and AI to support, augment and automate decisions.
Advanced technologies will be further democratized: New technologies to support digitization – such as artificial intelligence, machine learning and data analytics – are being delivered via the cloud by fintechs, significantly lowering the barriers to entry and enabling tier 2 and 3 banks to compete with global tier 1 banks.
Banks will seek solutions that provide a holistic view of their data: All analytics programs must begin with putting fundamental data foundations in place. Without the right preparatory work, valuable insights may remain inaccessible. Aggregating, standardizing and enriching data sets are the foundation of any successful analytics program. From there, advanced analytics tools can then begin to deliver value.
Clients will expect “hyper personalization” of services and information: In the coming years, this will become table stakes for bank-client relationships. By providing personalized, relevant insights and research, banks can demonstrate they truly understand their client, ultimately leading to deeper relationships and more profitable trades.
Drive for greater efficiency and ROI: With budgets and margins under real pressure even at top-tier investment banks, ROI has become a more crucial factor in any decision related to technology, and the unpredictable cost and resource demands of in-house technology projects have contributed to an increase in the levels of outsourcing. Against this backdrop, fintech platforms that perform the same functions more effectively and at a fraction of the cost will continue to rise in popularity in 2022.