BFSI Trends in 2023
The banking, financial services, and insurance industry (BFSI) continues to ride the wave of innovation. Triggered by disruption, most financial companies have shifted to digital and immersive solutions, relying on emerging technology to meet the changing demands of customers.
Despite uncertainties and challenges faced by the industry, financial institutions are slowly gathering momentum in 2023. As BFSI companies strive to become experience-driven businesses, it is important to get a grasp on the latest trends that are currently reshaping the industry.
Let’s take a brief look at a few trends that could affect the BFSI landscape this 2023, as explored in a recent article by Mamta Rodrigues, Global President of Banking, Financial Services, and Insurance at Teleperformance:
Expect a rise in collections
As economies experience a significant decline, the threat of recession only grows. With this, collections will be a significant element this 2023 – and BFSI professionals must plan accordingly to support and implement collections strategies. “We do not want to come barging down doors, demanding collections. We must be mindful and acknowledge there is a journey to the process to avoid burning bridges with our customers,” Rodrigues advised. “We should prepare for remediation and plan to create unique payment plans that are personalized.”
Make way for open banking
Open banking is a system where consumers, banks, and other financial institutions can exchange information and data in a highly secure environment, offering transparency and improving service. It is tapped to transform the banking industry, because it can help consumers securely share their financial data with their financial institutions.
Open banking offers mobility and more personalized experiences. For lenders and financial institutions, open banking gives the opportunity to offer more flexibility, innovation, and other financial services. Open banking application programming interfaces (APIs) can utilize data gathered from consumer transactions to determine the right financial service or product. It also helps companies have a “clearer picture” of their customers’ assets and liabilities, as a result of the data securely gathered from banks.
The current state of emerging payments
The payments industry is constantly evolving; however, emerging payments in the form of crypto, “Buy-Now-Pay-Later” (BNPL), and Person-to-person (P2P) payments are currently experiencing a momentary pause. Yet, this doesn’t mean that financial institutions should stop navigating the crypto and blockchain revolution – according to a white paper, a top motivation for adopting digital currencies is to improve the experience. This being said, now is the right time to assess the many opportunities emerging payments present, build the right tools to harness the capabilities of emerging payments, and strategize a customer-centric model that creates frictionless experiences throughout the journey.
Learn more about Teleperformance’s digitally integrated business services tailored for the banking, financial services, and insurance industry! While you’re here, get insights on how to gain a competitive edge in a highly evolving payments industry by reading “The Key to Winning Customers as the Payments Industry Evolves,” a white paper by Harvard Business Review Analytic Services. Download it for free today!