Trends in the finance and insurance industry 2022

Financial service providers and insurance companies responded effectively to the initial pandemic consequences and were able to adapt quickly to new situations. As a result of the 2008 financial crisis, new government regulatory measures were adopted to better prepare credit institutions in the event of an emergency. This benefited them last year. But the crisis did not leave them unscathed. 

However, forced the Corona crisis, financial service providers and insurance companies formally, their digital transformation further and especially to advance faster. Because the competition never sleeps. Being or becoming digital is the trump card - analog processes, on the other hand, mean you're out. Not only the "How we consume", but also the "How we pay"has changed. Younger customers of banks and insurance companies in particular want mobile options. Not to mention a mobile banking app.

The first trend is not a groundbreaking new one, but it runs through all industries and society as a whole. This makes it all the more important to take it seriously in the long term and put it into practice. We all want offers that are tailored exactly to our needs and wishes. This also applies to financial services. You can meet this need with digital strategies. You can flexibly adapt offers, loans, insurance policies and much more to the respective wishes of your customers. 

New technologies like artificial intelligence help you to do this. In the long term, the market players who always and everywhere focus on their customers and make targeted use of the appropriate technologies will be ahead of the game. It is not for nothing that neobanks like N26 and eco-banks like GLS Bank are so successful. The topic of sustainability and ESG criteria is also increasingly coming into focus - but more on that later. 

Do we still need to mention this trend? We think: Yes! Because even though the pandemic has accelerated the digital transformation of financial service providers and insurance companies, there are still big tasks ahead. Covid-19 not only increased the number of online shoppers:inside, but also accelerated the final implementation to change payment methods. Contactless payment is popular: According to a new survey by Bitkom, 85 percent of consumers made contactless payments in stores between February and April 2022. 60 percent of respondents want to pay less frequently with cash in the future. 38 percent of respondents have used their smartphone or smartwatch at the checkout in the past three months. 

From the perspective of remote working, it is also necessary to Cybersecurity and crisis-resistant technologies be reconsidered. Must-have security concept: Financial and insurance service providers must protect themselves against cyber threats. This is because sensitive data requires additional encryption that can withstand continuous synchronization. 

For banks in particular, the pandemic has shown that risk management must be further developed. In the event of a decentralized mode of operation of the employees, the Operational risk exposure - i.e. those that occur outside the typical, entrepreneurial risks and can cause damage -. Increases. Especially in the areas of compliance and cyber risk, as already pointed out in Trend #2, you need to pay attention. 

Now is the time to drive forward projects to reduce operational risks. Particularly important here are: clear responsibilities and controls, with regular monitoring. The appropriate tools and systems for automated and high-quality risk assessment support you in this. 

Poor customer service and long waiting times on the bank or insurance hotline are a knockout criterion for customers. Many branches were closed during lockdown times and people had to resort to telephone or digital means of communication. Excessive demands were inevitable. 

Chatbots and phone bots make your daily struggle with a constantly high volume of inquiries easier, which also approach you via various channels. These AI-based systems relieve your employees of manual work and allow round-the-clock support of your customers, without waiting time. The quality of customer service does not suffer. On the contrary: If a question becomes too complex, the responsible employee can intervene immediately and take over. Without the risk of frustration or displeasure. 

Directly behind the megatrend of digitization is the issue of sustainability. This encompasses virtually all areas of life and can no longer be circumvented in the finance and insurance industry in 2022. Financial organizations as active drivers of global economic development not only have to meet minimum regulatory requirements when it comes to sustainability, but also fundamentally rethink business models, products and services. A serious consideration of sustainability aspects can only have economic benefits for banks and insurance companies. 

Especially in the financial industry, investors focus on sustainable capital investments which are also transparent and accessible to all. In 2022, investments will therefore be subject to even greater compliance with sustainability standards. Providers of investment products must take this into account when designing their offerings, for example by including ESG criteria. In addition to return and risk, sustainability as an investment criterion. 

With all these topics, it is important to always keep one thing in mind: In your industry, trust is the foundation for long-term customer loyalty and satisfaction. A topic as sensitive as money demands perfect customer care. We will be happy to explain how you can guarantee this and incorporate the preceding trends into your corporate and digitization strategy in an initial get-to-know-you meeting!