The pandemic has strained the entire industry like an elastic band, and there is a natural tendency to let it relax and return to "normal" as soon as conditions allow.
FREMONT, CA : Forecasting is a risky business, as anyone who did it this time last year knows. However, 2021 is likely to be remembered as the year we picked ourselves up after COVID-19, hopefully learning something in the process. In 2020, banks were required to make a year's worth of technology and business model improvements in just a few months. The demand for digital solutions as well as safe work-from-home systems has skyrocketed. The pandemic has strained the entire industry like an elastic band, and there is a natural tendency to let it relax and return to "normal" as soon as conditions allow. Following are 2021 trends one should look forward to.
Customers would be won by the strongest conventional banks and neobanks, while weaker incumbents and undifferentiated entrants will fail.
light of the Banking Apps
As banking moves from street corners to screens, the retail and commercial rivalry will heat up—and standalone apps will be squeezed out.
Traditional retail strategies will face challenges in 2021. To make a more convincing pitch, some banks would lean toward radically clear goods.
Getting the Credit
Smart credit quality control using micro-segmentation would become a winning differentiator as COVID-linked losses work their way through P&Ls.
Cash Will No Longer Be the King
In countries racing to go cashless, the pandemic will slingshot digital payments. However, eliminating cash would be a long-term project in most markets.
The Uncertain World of U.S. Regulations
In 2021, the effects of the U.S elections on the industry will be apparent. However, several reforms, such as the fate of Open Banking, are still up in the air.
A Green Inflexion Point
When central banks and regulators understand climate change's macroeconomic implications, 2021 will be a watershed moment in sustainable lending.
The Rise of The Digital Regulator
If the banking industry experienced an acceleration in 2020, regulators would experience a similar acceleration in 2021. Expect the emergence of a new form of a regulator.
No More Fluffy Clouds
Cloud computing is evolving into a continuum, with cirrus clouds replacing isolated cumulus clouds. The dangers of siloed thought will increase.