Each month, we curate a list of articles within the financial services industry to help lenders stay on top of key trends in digital transformation and better understand what they mean for their institutions.
This month, we gathered four articles that focus on what the future looks like for lenders in 2023 and how they can prepare for it.
Five Top Banking Trends for 2023 by Catherine Leffert, American Banker
As financial institutions step into 2023 and prepare for the year ahead, one thing that’s clear is the continual focus on innovation, especially when it comes to technology development. According to a recent survey of banking leaders by Arizent, the majority of respondents reported that they plan to increase their technology spending by at least 10 percent in 2023. Additionally, responses signified that there will be a heavier emphasis on customer experience. As more banking customers seek online alternatives to traditional banking, lenders are continuing to shift their focus to meet changing expectations. In this article, American Banker takes a deep dive into these survey results, how they will shape the industry, and what lenders can expect to see in 2023.
Consumer Experience Matters in Business Banking, Too by Vince Bezemer, ABA Banking Journal
Historically, innovation in business lending has fallen short to consumer lending. Today, business owners can’t access the same financial services online like they can with their personal accounts, resulting in frustrating customer experiences. In 2023, business borrowers will no longer wait through tedious and time consuming processes at their traditional institutions. This article from the ABA Banking Journal takes a look at legacy business customer experiences and how lenders can transform their processes to remain competitive for years to come.
Banks Seek Digital Transformation Via Fintech Collaborations by Jim Marous, The Financial Brand
For many lenders, the outlook for advancements in 2023 is heavily influenced by borrower expectations. This year, lenders are expected to have an even stronger focus on developing best-in-class experiences for their customers. In order to provide borrowers with excellent online tools, many have chosen to leverage strategic partnerships with fintechs. This article from The Financial Brand reviews a recent report from the Federal Reserve that highlights the different third-party partnerships that lenders are creating and the impact that they have not only on the customer experience but the institution as a whole.
By the Numbers: 77% of Banks Feel Pressure to Collaborate with Fintechs by Brian Stone, Bank Automation News
As customer expectations continue to develop and change, the need for lenders to partner with fintechs continues to increase. This trend is especially true in smaller regional and community banks. Building technology in house takes time and resources that many of these institutions don’t have. In fact, according to a recent survey of bank decision makers, 65 percent reported that they would prefer to partner with third-party vendors instead of building their own technology in-house. This article from Bank Automation News takes a look at this survey data to identify trends with fintech-bank partnerships and how they will impact the customer experience.