Each new year is often met by plans for change and personal resolution, but the corporate world also takes part in exploring opportunities every time the calendar changes. As technology continues to influence and change the status quo of operations, expansion possibilities exist for companies that want to become relative and consumer-oriented. Changes in government regulations also demand flexibility and adaptation, and while no industry is immune from these alterations, the financial industry often has the most at stake. There are four areas of financial services that are undergoing changes, some of which may affect both your personal and business credit universe.
1. Easier Access to Credit
After the Great Recession of 2008, many wondered how the millions of consumers affected by financial ruin could bounce back and enjoy the benefits of on-demand financing. Statistically, almost 121 million Americans have been categorized as having a poor credit history, with about 45 million individuals being labeled as credit-invisible (having no credit history). For a while, the credit industry has withheld approval of financing for many who did not meet superior credit qualifications. However, the team at Experian has launched the Experian Boost application to give more consumers a chance at approval. Through their new platform, individuals can use their utility bills or phone to help boost their credit scores, putting them on the radar with more financial institutions and credit lenders. There has also been a change in how credit data is assessed, with things like rental payments and public data also improving the financial standings of the average consumer. As the credit industry continues to move forward, the key idea is inclusion, when it comes to developing or presenting a credit profile.
2. Digitization and Instant Banking
The behaviors of consumers are changing with their newfound access to tech and the internet, and the over-arching theme of consumer trends is instant gratification. Between mobile devices, tablets, interactive televisions, and computers, consumers prefer to do just about everything from the comfort of their screen and on their timetable. As it relates to finance, there is increased competition for personalized and digitized solutions to trading, sending or receiving funds, bill pay, and credit opportunities. This trend moves beyond the shores of the U.S., with global institutions like GBTI Bank experiencing the pressure to move money quickly and seamlessly between countries, companies, and all those in between. Digitizing and relying on e-documents and bitcoin are just of few of the demands being made of international institutions. Consumers want personalized access and service delivery, but they want it now and with guarantees of safe transactions.
3. Seamless Integration of Innovative Devices
The integration of new technology and software has been trending for some time, but the new focus is going to be on the transitions and what can be gained by moving from legacy systems to more advanced operations. The use of artificial intelligence within improved business software packages will bring big data to the forefront. However, moving between the past activities and the future possibilities is challenging, as there will be so much new information on the scene that it can be hard to know what is a priority and what can be shuffled to the digital shelf. Access to more complex data with involved analysis improves risk management assessment and new market insights. However, as each new set of data presents areas for further exploration, a company can get bogged down and overwhelmed by the time and money it will take to follow each path. This possibility requires companies to pursue a more compressed version of the industry intel, and tech trends are calling for more software options that can tighten the analytical life cycle and provide a more direct focus for company decision-making.
4. Managing Financial Safety
The increased dependence on connectivity for transactions across the world can become a playground for those who thrive on exploiting financial weaknesses. New trends are looking to biometric authentication as a way to secure information and devices. However, the hackers aren’t far behind, as one study reports that biometric hacking is expected to increase in the coming year. The sensors that validate the security checkpoints can deteriorate and be manipulated, and hackers will learn to make quick work of any flaws in the hardware or devices used for authentication. Whether it is the personal information harbored on a mobile device or the electronic work of finance, safety precautions are a priority. Cryptocurrency and exchanges through bitcoin will continue to rise as companies and individuals seek financial protection. Financing institutions and lenders always have to worry about regulatory changes, and the occasions of data breaches that have been reported have given some lawmakers a new platform for consumer security but also corporate compliance data oversight.
As a consumer or corporate executive, it is important to follow the financial trends of the country. These trends could impact your ability to refinance your home, take out an investment loan for corporate expansions, or continue to do business and exchange funds with companies or banks overseas.