Table of Contents

Banks today are no longer the financial institutions they used to be. In fact, the last two years have been a transformative journey for the entire banking sector. From banking apps turning to smart digital assistants and the continued ascension of neobanks, the whole industry is moving toward a more customer-oriented journey and advanced technologies.

The year 2023 will be no different! We might even witness better execution of the digital banking trends from last year.  So, continue reading as in this article, we’ll explore the major trends shaping the banking industry. What new things could be added to the customer-oriented banking approach and what would that mean for you and your business? 

Digital Banking Trends: 2022 In a Synopsis

No doubt the year 2022 was marked by major changes for the entire banking sector. Looking back, four trends showed significant prominence, so here’s an industry-wide average of the most critical banking trends that ruled the sector last year:

  • Increased focus on digital transformation with over 48% 
  • Over 44% of banks focused on simplifying the customer journey 
  • Improving big data analytics capabilities (38%)
  • Expanding digital product and payment capabilities with an average of 36%

Looking at these figures, it’s evident that the past year focused on exploring digital concepts. However, the entire industry was kind of behind in increasing customer acquisition rates and streamlining banking experiences for account holders. Could that improve this year?

Banking Trends That Could Be Ruling the Industry In 2023

Now that we have an overview of the digital banking trends in 2022, let’s look at the exciting trends for 2023 we might witness:

Open Banking Could Be On the Rise

Open API banking is still in its early phases. Still, it can potentially change the way financial institutions function. Banks can exchange data with fintech or other third-party service providers thanks to open APIs. APIs will become a powerful instrument for banks to develop new channels in cross-selling goods and services, as the lines between financial service providers and banks continue to blur.

However, as open APIs impose significant security challenges, financial institutions must ensure they can offer consumer data protection without impeding API activity. So we have to wait and see what will happen.

Financial Institutions Might Meet Their ESG Targets More Holistically

With several banks already pledging to achieve net-zero carbon emissions, the green banking movement has been in the works for years. The year 2023 could push this concept into momentum as banks begin to investigate how they could handle their ESG objectives in a more comprehensive approach. 

In fact, this year could be a game changer on how financial institutions not only cover their operations but also support customers during green initiatives. With this in mind, many banks will implement solutions in 2023 that are more effective at assisting consumers in adopting sustainable lifestyles. 

Blockchain Could Go Mainstream

The past few years have witnessed an increasing dominance of blockchain technologies, with numerous potential applications for businesses. Since blockchain has been a huge part of the banking trends in 2022, we expect it to move beyond transactions and money transfers this year. Financial institutions are anticipated to migrate their KYC and client operations to decentralized platforms in 2023 due to the growing use of digital identities. 

In addition, more blockchain-based systems for processing transactions are anticipated to hit the market in 2023. So will banks and blockchain technology merge?

Neobanks Could Take Over Individual Branches

Banks mostly rely on their physical branches for client interaction. Additionally, while these branches are densely populated in metro cities, they are scarce in rural regions globally. This is where neobanks enter as they act as modern banks with no physical branches and a 100% computerized infrastructure.

Even though the majority of neobanks have yet to demonstrate profitability, they are growing quickly. As a result, experts believe they’ll disrupt the banking industry, forcing established institutions to make technological investments and rework their workflows to give customers a quick and smooth digital experience.

Banking Apps Could Transition To Digital Assistants

In 2023, banking applications could stop being used as simple self-service tools, improving platforms for customer relationship management by offering individualized counseling services. 

The banking software will transform into a “smart digital assistant” that can “understand” the client’s wants based on their credit history and behavior. For example, before the consumer realizes it’s time to make a monthly payment, the proactive, intelligent assistant will communicate with them and suggest potential actions. Thanks to the immense development of AI, virtual assistants could even respond to consumer inquiries via voice or text dialogues that mimic emotions. 

The Banking Experience Is About To Change Forever

In conclusion, banks are constantly changing in response to ongoing and profound technological developments. Covid-19 has disrupted every sector globally and caused organizations to rethink their business methods, and this year we will continue witnessing such digital changes. 

While we can’t predict the future, there’s no doubt that this year will be an exciting one for the whole sector. And perhaps the best is yet to come! 

    Book a Demo

    We will get back to you as soon as possible


      Enter your details and schedule a time to meet.