Banking Industry Trends for 2022— Intellectsoft Blog

Updated: December 9, 2021

The COVID-19 outbreak has severely changed the development vector of different industries throughout the world, and the banking industry is not an exception.

The financial institutions are now looking for opportunities to quickly implement various banking industry trends and digital solutions that will help them to transform their current business model, enhance the efficiency of the operations and improve competitiveness on the banking market as well.

According to Deloitte’s recent research, these changes in the banking industry have opened up new focus areas for the businesses, such as cybersecurity, advanced analytics, robotic process automation, cloud computing, etc.

Moreover, around 84% of banking institutions consider AI solutions as one of the main priorities for improving their competitiveness in the current industry market

In this article, Intellectsoft will explain what emerging trends in banking will be popular in the upcoming years and what benefits they can actually bring to your business in 2022.

Banking Industry Trends to Keep an Eye On in 2022

This is one of the latest banking technology trends that will even keep picking up the pace. The pandemic forced brick-and-mortar banks to reduce their working hours or temporarily close branches until everything settles down.

More and more banks provide their services without having a physical branch. The only thing clients need to do is to use their preferred device to open a bank account and use their finances.

This is a cost- and time-saving solution for both banks and clients and the competition has already started extending.

Such an approach grants uncomparable flexibility and, what’s even most important for clients, digital-only banks offer their services at lower rates as there is no need to maintain a brick-and-mortar branch so this is a real threat to traditional banks.

1. White Label e-Wallet

The pandemic has stimulated users to try a new format of payments they’d like to use further – digital wallets. In general, that’s a contactless form of mobile banking that enables completing the transaction anytime and from nearly any iOS or Android device.

At the same time, it allows businesses to provide a personalized customer experience while eliminating the high costs and time for developing the system from a scratch.

According to the predictions of Allied Market Research, around 4 billion people will be using digital wallets as the main payment method by 2024, so such digital banking trends are simply a must for the institutions that want to be at the top amongst competitors.

2. Self-Service Applications

One of the most valuable online banking technology trends, especially for millennial banking is self-service apps. Basically, they enable customers to make a list of financial transactions such as deposit or withdrawal, inquiry, transfer, bill payment, loan, currency exchange, and lots of other wealth management directly in their in-app profile.

At the same time, various businesses within the banking industry can improve client engagement, optimize and automate most of the services that are currently offered on the banking market.

Thus, clients no more need a physical presence to conduct any sort of banking transactions: all these are already included in their banking app!

3. Cross-Platform Services

In fact, transactions are closely involved in other industries such as healthcare, insurance, hospitality and retail banking. That is why embedding cross-platform payment methods, such as mobile payments or hybrid wallets can significantly raise the income of the businesses and financial institutions they’re cooperating with.

A notable example of the utilization of cross-platform services is the Payment Program of the WeChat app in China. The embedded payment in-app services allow businesses and entrepreneurs to quickly conduct the transaction within a few seconds while not compromising the application security.

Moreover, this digital banking trend is much easier and faster to launch and maintain, and is between 15% to 50% more cost-effective compared to the native apps!

4. API Implementation

In the banking industry, API or Application Programming Interface enables synchronization, linking, and connection of the database of service with any application. It works as a so-called bridge that ensures the secure transmission of personal information without involving third parties.

At the same time, the API trend in commercial banking and private banking makes these financial institutions more transparent and secure, which surely is a great benefit for businesses, their clients, and of course, the financial institutions themselves.

The other great advantages of the API banking trend implementation are the cost reduction and increased income, workflow optimization, and eliminated time for transactions completion as well. Thus API implementation is among the top banking trends for 2022.

5. Video Banking

Another emerging banking trend is video banking technology – a great opportunity to enhance the workflow by optimizing the remote services for their clients. Such an approach provides a better engagement of customers with their financial institutions and enables the online processing of different in-person procedures.

This banking trend is especially beneficial for investment banking and consumer banking. Moreover, this enables bank specialists to be always available at the exact time the customer needs, so the bank doesn’t always need to be local to the client.

Thus, video banking can optimize the various banking processes to provide as smooth and effective client service as possible. At the same time, workflow optimization and automation allow financial institutions to reduce the time and costs needed to process any client request.

6. Online and Mobile Banking Experience

Online and mobile banking experience is already common as it’s extremely convenient for most people. In fact, in spring 2020 many banks experienced a 200% rise in mobile app registrations.

Respectively, it resulted in a declined number of physical branch visits as self-service automation enables clients to perform many actions on their own.

However, it’s worth noting that, at the same time, the demand for an expanded range of mobile banking features is growing exponentially.

Users are expecting to completely substitute their cards with an app and use it when withdrawing cash in ATMs, put a temporary hold on a card, use facial recognition or scan fingerprints when entering the app, view spending statistics, cancel service subscription payments, etc.

It’s crucial to understand and satisfy these needs for retaining the existing clients and attracting new ones.

7. Open Banking Gains Traction

Such an increased interest in online and mobile banking has contributed to the advent of new financial innovation called Open Banking.

A growing number of countries worldwide are planning to implement Open Banking initiatives and leverage the enormous potential of APIs. This is a perfect way to achieve a connected holistic banking experience for clients.

Basically, this technology will enable clients to easily consolidate and access their financial data from multiple institutions and organizations through open API for a seamless and impeccable experience.

The adoption of this technology will lead to Open Finance that makes it possible for third-party providers to access clients’ financial data after their consent.

8. Contactless Payment Methods Over Cash

The latest crisis has significantly impacted people’s lifestyles and has formed new behavior patterns. With the reduction of real-life interactions, people opt for online transactions and digital payment methods.

Some countries even expect the complete abolishment of cash and switching to solely digital financial transactions. In its turn, such a transition of banks to a cashless society will reduce costs related to handling hard money.

It will be much easier for banks to analyze digital transactions and get an overview of clients’ expenditure patterns.

9. Artificial Intelligence for Increased Personalization

Artificial intelligence is being implemented in many industries and the banking sector will broadly utilize this game-changer to increase clients’ personalization and overall service use convenience.

AI and machine learning will be actively used to provide clients with real-time tailored financial recommendations to ensure a smooth experience.

In addition, this innovative technology will help banks to predict clients’ behavior, perform risk management, reduce fraud, identify banking technology trends, and analyze the competition.

10. Shift to Composable Architecture

Many banks are predicted to switch to composable architecture to let them effectively respond to potential challenges and crises in the future.

The transition can be done step-by-step and it is a perfect agile and scalable solution for financial organizations that will help optimize many internal processes.

This is why broad investment in the transition to composable architecture is a banking trend for the future year.

11. More Complex Cloud Environment

From now on, banks and financial organizations are starting to create more complex cloud environments and actively benefit from the enormous potential of cloud computing technologies for efficient remote operations.

Such organizations have to process a huge amount of data on a daily basis and making the information easily accessible will be possible only with the increased use of cloud computing.

This solution is very scalable and cost-efficient and most financial institutions are predicted to embrace this innovation in their favor.

12. Robotic Process Automation for Higher Efficiency

Robotic Process Automation or simple RPA is another hot banking trend that institutions will try to adopt for increased productivity and efficiency.

This solution can significantly save the budget and substitute or assist human employees with a wide range of tasks to minimize error, maximize accuracy, and significantly improve clients’ experience.

Companies of all sizes invest to leverage this amazing solution that soon will rock the world of banking.

13. Focus on Cybersecurity

Taking into account that most transactions and financial operations are processed online, companies will pay extra attention to their cybersecurity to protect all the sensitive data and ensure the highest security level of clients’ financial information.

Such data is an easy target for hackers so to avoid financial loss and reputational damage, cybersecurity has to be a top priority for all industry players.

Summing It Up

As the situation with coronavirus spreading remains uncertain and the crisis continues, no one knows exactly when the dust is going to settle.

Companies might still encounter new challenges, opportunities, and discoveries so it’s mandatory to keep a close eye on the situation, monitor the market, and focus on customers’ behavior to quickly adapt to arising circumstances.

Don’t miss a chance to get in touch with our specialists and discuss potential opportunities that will help you implement the latest innovations to take operations to the next level and keep up with the banking technology trends.

The hospitality industry depends a lot on keeping customers happy, but it’s getting harder to attract and keep them. The pandemic hit this industry hard, and now market competition is tougher than ever, with competitive offerings swaying customers. Hospitality businesses are willing to spend big to win customers back. The main questions for many are: how can we stay ahead of the competition, keep our customers, and increase revenue? Keep reading—we’ve got some answers.

Customers today have so many options that getting their attention is a real challenge. It’s not easy to make them choose your business over others. What worked 10 years ago doesn’t work the same way now. Back then, people often chose businesses based on reputation. But with new types of businesses (boutique hotels, craft cafes) popping up or big enterprises getting a new strategy, expectations have changed. The good news is these businesses have shown what works: great customer service. They focus on personalizing the experience, making things easy for customers, offering loyalty programs, and using smart technology.

In this article, we’ll explore these tech strategies and show you how they can help your business grow, and double the revenue. Keep reading to learn more!

The Importance of Customer Satisfaction in the Hospitality Industry

Customer satisfaction, which equals exceptional customer experience, is the backbone of the hospitality industry. It plays a central role in driving revenue and loyalty, as satisfied customers are more likely to return and recommend a hotel, restaurant, or other hospitality business to others. In fact, a study by the Harvard Business Review found that a 1% increase in customer satisfaction can lead to a 0.5% increase in revenue. Moreover, loyal customers are more likely to forgive mistakes and continue doing business with a company, even if they experience a negative encounter.

Let's quickly review the challenges the hospitality industry is facing right now so we can move on to the solutions and our case studies.

Challenges in Hospitality

As businesses navigate the changes in the hospitality industry, there are some key areas where a little improvement can go a long way. From improving customer service to embracing digital transformation and tackling labor shortages, we’ll take a closer look at today’s biggest challenges—and, more importantly, how technology can step in to help. Let’s get started!

Poor Customer Service

Even with strong and high-quality business offerings, poor customer service can drive potential customers and existing customers away. Common issues include:

Long wait times in customer service queues (it is worth remembering that our attention spans 8 seconds, and we live in a very busy world, so quick and efficient responses are more important than ever.)
Poorly trained customer service representatives
Lack of follow-up
Services not being done properly or quickly
Recall issues that require multiple service calls

These problems can frustrate customers. But, at Intellectsoft, we believe that the right approach, combined with technology, can address them effectively.

Digital Transformation Gaps

Approximately 50% of hotels are adopting new technologies, with 43% automating repetitive tasks and 39% upgrading existing systems.
Source: workstaff.app

Source: workstaff.app

While many businesses are adopting digital solutions, some still struggle with outdated systems and fragmented data. Legacy companies often face chaos when trying to manage their data and create new systems or add features.

Some of the recent examples include clients coming to us to create AI solutions for their services while their data simply was not ready for the advanced tasks. We advise stepping back, communicating with a company objective, and working on keeping the data clean (centralized, structured, and segmented).

When we’re asked to create advanced systems using AI, we always emphasize the importance of organized data. To train AI and build such complicated systems that truly work, you need to start from the very beginning—collecting, storing, centralizing, and organizing it. We encourage our clients to align all departments to work internally on the data so we can create a unified digital system that delivers personalized experiences.

If you’re unsure where to start with your data, we can help. Collecting feedback at various touchpoints along the customer journey is crucial for gaining insights into customer satisfaction and loyalty. Book an IT consultation with us, and our experts will guide you in mapping out a path to get more from your data and build a system that works for your business and team.

Reskilling Staff

The pandemic hit hard in early 2020, especially for the hospitality and travel industries. Even five years later, many businesses are still feeling the impact. Recruiting and retaining skilled staff has become a major challenge post-pandemic.

Reskilling to address technology’s impact is of utmost importance, as about 40% of hotel General Managers place it among their top three workforce challenges.

Source: Deloitte

We strongly believe that adopting the right technology can help. For example, creating an app to train your staff not only saves time but also ensures consistency in learning. AI assistants can also work alongside your team, helping with tasks like recruitment (providing industry insights, crafting emails) and staff training. Imagine having an app dedicated to making your team’s work easier and more efficient!

How Technology Tackles These Challenges and Supports a Customer-Centric Hospitality Culture

Automation, AI, and similar technologies may threaten many. However, the debate about replacing humans isn’t about that—it’s about cooperation and working hand in hand with technology to achieve the highest standards and establish brand-new “golden standards.” Technology is here to assist staff in listening to and collecting customer insights from data.

Let’s review some of our cases to see examples of how technology helps improve customer experience and supports customer service.

Examples of Intellectsoft projects

Property management systems (PMS)

We created a web platform and mobile app that makes managing daily tasks easier and offers extra services to improve residents’ experience. It gives a clear overview of daily activities and helps with managing units and users. Residents can easily book amenities, submit service requests, and report incidents. The platform also includes features for equipment management, key instructions, workflows, and custom permissions. This makes it easier for staff to stay on top of equipment and ensure residents have all the information they need. Plus, tools like announcements, quick votes, a forum, and a community calendar help build a connected and engaged community.

Guest Experience Management App

Our next app helped our client improve their guest experience by replacing printed marketing materials and the need for phone calls with a smart solution. Now, guests can easily order in-room dining, make reservations, and interact with staff— through a simple tablet in their room. The solution includes three parts: a custom in-room tablet with a variety of services, an admin panel for hotel staff and service providers, and a backend system that connects everything together. This approach makes things easier for guests and staff, improving both convenience and efficiency.

Existing Customers First: Building Loyalty with Personalized Touchpoints

Keeping existing customers is not just a strategy; it’s well-known that retaining existing customers is more cost-effective than acquiring new ones. In fact, research shows that it costs five times more to acquire a new customer than to retain an existing one. KPMG named customer retention as the number one revenue driver for the company.

Moreover, a 5% increase in customer retention can lead to a 25% to 95% increase in profits, showing the significant impact loyal customers can have on a business’s bottom line. Retention strategies, like personalized experiences and loyalty programs, can foster long-term relationships and generate recurring revenue, ultimately making them an invaluable part of any business model.

Personalization: How Technology Can Help?

Everyone loves to feel special—it’s part of being human. In hospitality, personalization has evolved from being a luxury to an essential standard. With the right technology to manage your data effectively, you can deliver those “wow” moments that guests won’t forget.

More than half of hotel chains are already using personalization features on their websites, booking platforms, and apps, and another 39% are planning to follow suit soon. They’re tailoring experiences to fit guest preferences perfectly.

Source: Deloitte

How does technology make it happen?

CRM Systems: They help you keep track of guest preferences, booking history, and special requests so you can offer services tailored just for them.
Loyalty Programs: Personalized rewards and offers show your guests that you value them, keeping them coming back for more.
AI Personalization: AI analyzes guest data to predict what they’ll love (from room upgrades to local recommendations) before they even ask.
IoT Gadgets: Smart room features like voice-activated assistants, or temperature controls adjust to your guests’ preferences, making their stay more comfortable.

With tech-powered personalization, you’re building loyalty and maximizing the lifetime value of every customer.

Our Case Study: Smart Hotel Management & Loyalty Program

For one of our clients, we created a smart room solution, complete with a custom IoT system. Guests can use a mobile app to control services, explore amenities, and find resort information-- with a special touch to their suite type. For the client’s entertainment business, we improved their legacy software by running a full IT and code check, fixing issues, and making the system better for customers.

Along with that, we developed a mobile app for the loyalty program, allowing businesses to effortlessly reward their customers and keep them engaged with exclusive benefits.

Our solutions not only helped the client with special experiences for guests; it also improved operations, cutting costs by eliminating inefficiencies. Here's what our experts shared:

"We transitioned away from ESB (Enterprise Service Bus) systems, which previously cost millions, and replaced them with more efficient, self-managed solutions. Similarly, we’ve implemented Device Farms that improved operations and saved resources."

Leveraging Software to Increase Upsell Opportunities

Here are some examples of tech tactics that will help your team sell more and introduce new offerings to existing customers, improve overall efficiency leaving your team grateful:

Dynamic Pricing Algorithms

For finance and marketing teams, manually calculating pricing by segment to introduce your clients can be incredibly challenging. AI-powered tools can strongly optimize these strategies by analyzing your database in detail.

Upselling via Apps

Boosting revenue in the hospitality business often comes down to personalized experiences. Imagine this: a guest books a room, and then your app suggests a spa package or a room upgrade at just the right moment. Later, it nudges them to book a dinner reservation or a guided tour designed to their preferences. With apps offering these personalized recommendations during and after bookings, you’re not just increasing your revenue per guest but also skyrocketing their experience. And you do it in a sustainable way, not by speculating, but by offering what your customers desire based on their previous experiences. It’s a win-win: seamless, helpful, and far from pushy.

Inventory and Resource Management Software

Making every resource count in your hospitality business is key. Inventory and resource management software allows you to effortlessly track everything from linens to room availability, ensuring nothing goes to waste. Having real-time insights to reduce overstock, avoid shortages, and optimize operations assists sustainably keep everything under control and know what you need to focus more. It helps maximize room occupancy by aligning bookings with available resources, ensuring every room and item is used effectively. This approach leads to smarter management, better guest experiences, and a noticeable boost to your bottom line.

Adopting these strategies not only optimizes your operations but also drives business growth. Ready to discover how technology can elevate your goals? We’re here to create a tailored solution for you.

Steps For Implementing a Customer Service Technology Solution

Improving customer service in hospitality doesn’t have to be a daunting task. With the right technology, you can smooth the path of your operations, speed up response times, and elevate the overall guest experience. Here’s where you can make it happen:

1. Understand Your Needs

Start by identifying the challenges your business is facing. Are you struggling to manage high volumes of inquiries, track customer feedback, or personalize the guest experience? Pinpointing your needs will guide you to the best solutions.

2. Pick the Right Tools

Choose technology that aligns with your goals. Look for solutions that are scalable, easy to use, and integrate effortlessly with your current systems. Options like CRM software, live chat tools, or a guest experience app can make a difference.

3. Equip Your Team

Technology is only as effective as the people using it. Train your staff to make the most of the new tools, so they can deliver exceptional service and resolve issues quickly. Confident, well-equipped staff creates happy, loyal customers.

4. Keep Improving

Once implemented, monitor how well the solution works. Are response times improving? Are customers more satisfied? Regular evaluations will help you fine-tune your approach and keep things running harmoniously.

Some Tech Ideas for Hospitality Businesses

CRM Software: Manage customer interactions and preferences.
Guest Experience Apps: Delight guests with personalized experiences right at their fingertips.
Amenity Management Systems: Simplify operations for everything from room service to facility bookings.
Helpdesk Software: Resolve customer issues optimally.
Live Chat Tools: Offer instant support and answers.
Social Media Management Tools: Keep customer interactions engaging and organized.

Integrating these strategies will not only improve your customer service but also deliver unforgettable customer satisfaction, loyalty, and, ultimately, your bottom line. Ready to take the next step? Book a consultation with our experts.

Conclusion

To wrap up everything we've discussed, customer satisfaction and experience are at the heart of hospitality. Retaining customers is more than just keeping them around—building strong, long-lasting relationships and consistently meeting their evolving needs. By understanding their pain points and offering personalized solutions, you can inspire loyalty and drive progress. With the right technology and continuous improvement, your business can stay ahead, let go of what no longer serves you, and keep growing.

At Intellectsoft, with over 17 years of experience in software development, our expert team is ready to help. We create everything from mobile apps to full-fledged portals and systems, leveraging the latest technologies like AI, Cloud, and Machine Learning. With deep experience in the hospitality industry, we’re here to craft personalized solutions that bring your business unforgettable customer experience and retain your valuable clients.

Ready to double your revenue and level up your customer retention strategy with personalized technology? Contact our experts, and we look forward to working hand in hand with you to build or revitalize the perfect app or system for you.

Tetiana Borysova

Content Writer

Banking Industry Trends to Keep an Eye On: 2022 Edition