Top Financial Services Trends In 2020

Financial servicesIs math related to science? Katy Perry once humbly asked Neil deGrasse Tyson. A bewildered Tyson explained to the curious actress that math was the language of the universe. Scientists explain the secrets of the cosmos through a beautiful tongue called mathematics. Similarly, accounting is the language of business. Accountants record the financial chronicles of a company. That’s why some people also call them financial reporters.

The world of finance is constantly evolving. With each step of economic evolution, the demand for field experts is growing. There were less than 1.5 million auditors and accountants in the United States two years ago. Moreover, this job paid an average annual salary of $71,550 in 2019. BLS expects a 6% growth in the employment rate of financial reporters. The future of a career in accounting seems promising. Financial education secures your potential vocation in banking, taxation, or insurance.

There are multiple economic professions you can pursue with a master’s degree. So, accounting is no longer just a profitable occupation; it’s in-demand. Accountants have excellent problem-solving skills and a critical thinking mind. You don’t always have to become an auditor/accountant after getting your Master’s degree. There are numerous other fields you can join as a CPA. The world of technology also allows you to complete your macc online. Here’s a brief list of occupations you can adopt:

♦ Accounting Manager
♦ Financial Manager
♦ Investment Banker
♦ Chief Financial Officer
♦ Financial Analyst
♦ Corporate Controller

Financial Services Trends Of 2020

It’s an unfortunate reality that the banking sector has been slow to adopt the latest technological advancements. As the process of digitization continues to accelerate, many new trends have emerged in economics. The finance department is trying to incorporate block-chain, A.I., automation, and cloud computing. Let’s review some of the major financial services trends of 2020:

1. Robotic Process Automation

A repetitive procedure exhausts the human brain. People start to make mistakes and function sluggishly. Automating such operations with a robotic process makes this service more efficient. Virtual assistants perform more productively while dealing with customers’ issues. It can even detect fraudulent activity unnoticed by the human eye. So, the insurance industry uses this technology to assist automatically in claims-handling procedures. By eliminating human inefficiency, RPA spares the company a loss of time, money, and reputation. These bots can conveniently perform simple data-entry jobs which humans would find tedious. All it takes is brilliantly-coded software that controls the working of the bot.

2. Skunkworks project

Financial corporations deal with two significant problems – legacy technology and lack of innovation – in this century. More than 90% of I.T. experts believe the legacy that technology is holding them back. So, corporate selects a few people from the bullpen and tasks them with bringing a new idea. This carefully-crafted group is small, selective, and loosely-structured. Group members gather around in a setting called “skunkworks project” and brainstorm innovative suggestions. Usually, these people embark on hush-hush, semi-secret skunk technology projects. Kelly Johnson has created a set of 14 rules for such a mission. The innovation these guys are supposed to bring makes even the competitors say, “wow.”

3. Open banking

The concept of open banking involves independent APIs that provide greater financial transparency. It has the potential to revolutionize the economic structure of the world and even overcome it. Traditional banking is now under threat of being replaced by this innovative form of mobile banking. Customers can now get quick, centralized, and personalized banking services.

4. Voice recognition

Some people thought that touchpad would be futuristic. However, voice recognition has now transformed the public imagination of computers’ fifth generation. Chatbots are taking over customer representative positions. They are also helping the consumer not via text messages only but also voice interfaces. Experts believe that soon A.I. will handle more than 85% of customer services. Like in the movie Her, there can be a complete, personalized financial operating system for people. This form of banking transactions has received substantial public approval and will likely become a norm.

5. Robotics and computing

People are afraid of what they call the “rise of the machines.” But there’s probably a century between 2020 and the time when robots become our overlords. Until then, artificial intelligence is gradually renovating the entire structure of our banking system. Risk management, analytical procedures, supply chain, and investments involve robotics now. RPA and voice recognition software are just a few applications of A.I. in banking. There are many examples of how artificial intelligence is changing the banking sector for good.

6. Virtual money

It’s not a surprise when we observe how quickly cash transactions have become outdated. There used to be a time when people had no concept of money. Now we’re heading toward a cashless world again. The financial sector also saw the rise of block-chain and crypto-currency in this century. Facebook tried to introduce its currency called Libra. It has faced economic backlash, and now it seems Facebook‘s plan to launch it this year will be delayed. But the world is still experimenting with digital currency. Electronic money will soon replace real money. It will provide customers with immediate and less expensive financial services worldwide.

7. Cloud computing

The banking system has embarked on an inevitable “race to the cloud.” The economic departments are already using SaaS cloud services. But we expect it’ll soon cover the management of payments, loans, and bills. It provides banking institutions inexpensive, high-capacity storage, mobility, and security of data. Cloud computing is reshaping the economic structure of the world.

Conclusion

These are only a few major financial trends that have overtaken the economic industry. The economic market will reach a value of $26.5 trillion by 2022. These trends are contributing to the success of the banking industry. However, the future is in the hands of technology and its efficient applicants. With the coming of robots, we’re currently living in an era of smart banking. Of course, the financial institutions of the world need more intelligent minds to lead this digital revolution. These minds will not just benefit humankind with their expertise in accounting. They will also benefit themselves by contributing to this economic transformation.

Shift Frequency © 2020 – Top Financial Services Trends In 2020

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