Need to Know: 5 Trends Advancing Financial Services in 2022
8/4/2022 RRD
Since the pandemic, the financial services sector has experienced enormous technological advancement that has helped propel the industry forward. This advancement has also introduced new complexities. One such example: the growing need to carefully monitor, understand, and leverage the preferences of tech-savvy consumers in an evolving financial landscape.
At RRD, over 600 businesses trust us with the secure delivery of their financial and transactional documents. This gives us some unique insight into the challenges and opportunities the financial services industry faces.
And speaking of insight, our strategists in this space recently shared the trends they expect will shape financial services institutions for the second half of 2022.
Trend #1: Growing consumer demand for mobile, self-service transactions drives tech investment
The pandemic increased the appeal of self-service offerings, with customers expecting a minimal touch, mobile-based solution to meet their financial needs. However, meeting this demand remains a pain point for the sector: according to a Microsoft and Worldwide Business Research (WBR) Insights survey 1, 63% of financial services leaders say they are challenged to provide enough self-service options for customers.
The financial services industry is likely to continue to invest in digital platforms, such as incorporating one-time transactions like mobile-guided loan applications as well as on-demand transactions tying payments to payment reporting and reconciliation, which translates to transparency for the consumer.
Trend #2: Attracting customers in a competitive banking space means meeting them where they are
A crowded banking industry creates tough competition for attracting and retaining customers. Knowing your customer and their channel preference is critical to success. One solution to navigating this challenge is leveraging multiple data sets to identify how effective one marketing treatment is from the next for each individual.
For instance, consumers may be more receptive to promotional materials they receive at their home mailbox instead of their already overflowing email inbox. The same could be true for receiving brand messaging through out-of-home (OOH) advertising or social media.
In fact, a survey 2 conducted by RRD found that Gen Y consumers were 65% more excited to receive direct mail in 2021 than they were in the year prior. For our banking clients, both emerging and well-established, we’re working with them to deploy personalized and strategic direct mail campaigns that complement digital marketing strategies, which can lead to increased response rates and ROI on initiatives.
Trend #3: Bringing insurance annuities up to speed in 2022
Outdated manual processes in the insurance industry can lead to inaccuracies, potential legal issues, and missed opportunities for new product offerings within a highly segmented broker-dealer network. Insurance organizations must navigate the adoption of new technology by leveraging API data integration streams and developing customized self-service, tech-forward options that adhere to regulatory requirements.
Streamlining operations brings a greater ease of doing business by saving time and resources, improving compliance, increasing efficiency, and speed to market. It also ensures distribution accuracy and increases the likelihood of user adoption and client conversion.
Trend #4: CX is the new battleground for financial institutions
Engaging with customers to foster a more personal and lasting relationship is key for increasing customer retention and customer portfolio expansion. In fact, according to a digital transformation survey 3 from BDO, improving the customer experience is the second-highest digital priority for financial institutions, slightly behind optimizing processes to create operational efficiencies.
Financial organizations should leverage CX technologies, including data-powered personalization, customer onboarding and feedback automation, and AI-powered predictive analytics, to capitalize on this trend. Institutions investing in an enhanced digital experience are best positioned to deepen customer relationships, boosting customer retention and customer lifetime value.
Trend #5: Maintaining compliance amidst regulatory change
Compliance requirements and regulations are updated constantly, and professionals in all areas of financial services are under severe pressure to ensure they remain up-to-date. Wealth management professionals, for example, are being forced to carry out more compliance-related tasks than ever in various areas, including customer protection, security, transparency, and governance.
Within retirement services, state and even firm regulations must require sales channels to have the right products with the proper regulatory approvals to remain compliant. Navigating state, local, and national regulations effectively will ensure that all business communications are precise, controlled, secure, and compliant. For example, SOC 2 and AICPA Trust Services Criteria are imperative to engaging with an advisor.
For almost 40 years, RRD has closely monitored financial trends, in order to strategically advise clients through an evolving marketplace. RRD has continually offered relevant solutions such as operational documentation, retail services, and an optimized mix of marketing communications and campaigns to acquire and deepen the relationships between financial institutions and their customers.