As we move into the new decade, Tim Yu our Digital recruitment specialist, talks through the latest digital trends in Payments, FinTech, Banking and wider Financial Services.
As the typical millennial consumer is seemingly moving away from credit cards, we expect to see a continued rise in Buy Now Pay Later (BNPL) solutions. Recent trends have shown an uptake of customers who want to take more control and ownership of their finances. This has ultimately led to alternative payment options, outside of credit, becoming attractive for consumers.
Due to the success of ClearPay (AfterPay), and numerous other BNPL providers entering the market in recent years, multiple companies are launching and scaling out their platforms/solutions in an attempt to take market share away from the payment network giants like Visa, Mastercard and AMEX.
Furthermore, as an increasing number of startups and innovators continue to enter an already highly saturated market, questions continue to revolve around scalability and commercialisation. For those involved in the wider product roadmap process, there are growing expectations of consumer centricity and improving the ability to solve customer pain points across various touchpoints. Streamlining user experience will continue to be a major focal point, so having a best in class customer journey map in place will be a priority for many brands.
Innovation in the payments sector, focusing on a seamless and integrated customer experience will continue to develop. FinTech integration, external acquisitions and corporate partnerships are all expected to continue growing over the coming months. Whilst customer acquisition has been a focal point for these disruptors, the question of commercialisation and ongoing revenue/cash flow still remains for many.
The tier 1 banks are still recovering from the post-2008 tightened regulations and 2012 penalties, and recent media spotlights on the banking sector have left many banks struggling to maintain brand trust with their consumers. Given the decreasing level of confidence felt towards the banking sector in recent years, digital online shadow/neo banks such as Monzo, Revolut and N26 have gained a greater foothold as customers’ perceptions of traditional banks appears to have waned with respect to best value for money.
As millennials and generation x become the new target audiences for many banks, digital experience is now shaping many banking product decisions, with specific relevance to customer centricity, alongside identifying key touchpoints and pain points for the typical online consumer.
With banks continuing to transform from a digital perspective, online consumers’ relationships and engagement levels with their banks will continue moving towards various digital channels through self service, mobile and online banking, rather than a traditional reliance on the branch network and customer contact centres.
Wider Market Trends
The rise of digital has led to channel specialisms with specific regards to marketing, product and project functions. In the past decade, we have seen shifts in business structures, with increased investment into digital functions that now sit between IT, technology and marketing departments.
Investing in numerous AI & Automation projects alongside streamlining the online customer experience was a common theme throughout 2019 and we expect it to continue for this year, and beyond.
Entrepreneurial ‘incubation/innovation’ labs within financial services firms are continuing to build their own ecosystems to attract the best and brightest in growth sectors, including digital and product innovation, AI, blockchain, data and analytics functions.
Let’s hope we see another ‘roaring 20s’ this decade in digital, as there is plenty of innovation to look forward to. How is your business reacting to these trends?