2020 was a conundrum of a year, that’s for sure. And while it may be the best time to make memories (except for lazing around during the lockdown), it certainly taught us how to move about and perform our daily functions in a restricted manner and also set the stage for how the economies worldwide would rebound from the slump bought on by the pandemic, which brings us to the topic for today: the top financial trends of 2021, and how the world of finance will grow and go about their business in the new year.
Quite a lot has changed and that all will be reflected in the trends of the financial industries associated with different sectors, including technology, food and beverages, electronics and a whole bevy of industries that deal with finance. So, here are the top financial trends of 2021, explained.
Much of these trends are based on what we learned from 2020, the outbreak of the pandemic and how the corporate world reacted to it and coped with emerging concepts like remote working, social distancing and whatnot. A lot of these trends are particularly centered around the digitalization of financial services; banking, payments, transfers and other services previously handled by bank personnel on the location.
All of that has now been transferred to an online infrastructure, which eliminates the need for a person to come in to the bank and conduct their business. However, while this may be very convenient and certainly useful in the days of Covid-19, this increases the risk factor for banks to having their data stolen by hackers and be on the risk for unscrupulous people to steal and then demand ransom for it.
Either way, the trends for the new decade in the finance industry are as follows,
The Top Financial Trends Of 2021
As explained beforehand, the top financial trends of 2021 revolve mostly around the fact that most of the world’s businesses have switched to virtual services, online deliverance of issues and other internet-based functional activities. Here are some of the trends to keep in mind regarding finance in 2021,
- Customer experience in the finance industry: One of the emerging trends of 2021 in the finance industry is of the changing and revamping of the customer experiences, especially for financial websites and services websites, that host a lot of internet traffic. For instance, after the lockdown ended and 2021 began, a lot of banks and other financial institutions started revamping their websites and began placing a greater emphasis on a good customer experience while on the corporate website. This has led to an increase in the trend for revamped websites that cater to a lot of traffic and provide for a good user experience, becoming one of the top financial trends of 2021.
- Currency going digital: Bitcoin has been around for more than a decade now, but it is only in 2021 that the world is being introduced to other, non-criminal uses of virtual and cryptocurrency. In 2021, after what we saw and learned from 2020 and the acceleration of a cashless transaction as a concept gained traction, one of the major financial trends of 2021 include a wider acceptance of cryptocurrency as a viable and acceptable form of payment, ready to revolutionize the financial industry in 2021.
- Stock exchanges going digital: Stock exchanges, once considered the holy grails of everything financial, for the first time in 2020, found themselves ill-equipped to deal with the rapidly modernizing and materializing concepts of remote working or of their brokers working from home. Despite its initial attempts to deem brokers as essential workers, we saw 2020 change the course of history, wherein brokers started working from home under a new directive, allowing stock exchange employees to work from home and save themselves from the deadly virus. This is one of the biggest trends in 2021; previously the unthinkable, stock exchanges were also forced to move to a status of remote working, which is very well being continued even as the pandemic shows signs of deceleration in 2021.
Banking Financial Trends In 2021
One of the major players in the financial industry is the banking sector, which has also seen unprecedented changes in its modus operandi, especially after 2020, which has been carried onto the new year and is positioning itself as one of the emerging financial trends of 2021 in banking.
One of the major trends is again, the widespread digitalization, which refers to the fact that even the more traditional and conventional banking companies, which preferred dealing face-to-face and required paperwork rather than a simple nod from a fingerprint recognition device, have been experimenting with online infrastructure that simplifies business banking to as simple as just confirming your presence with FaceID or fingerprint recognition.
This was already available with major banking establishments, now even the ones most resistant to such a digitalization are opening up to the idea of digital, contactless banking, which simplifies a lot and minimizes costs on top of that.
Another financial trend in 2021 related to banking is the continuous outpouring of resources by this particular sector into resources that will allow for a secure mainframe to be accessed by all banks, which will also compound security, making them fare better against hackers and individuals with malicious intent, bent on exposing the dark side of banking.
Technology Finance Trends Of 2021
One of the biggest winners of the post-2020 financial world was the technology sector, be it the software department or the hardware section; everything from group-meetings software to new phones and laptops came out in the year, making the leap from just routine innovations to becoming a trend in 2021.
These include again, the digitalization of fintech services, which include digitalization of banking, financial services and other facets of the finance industry interconnected with the technology sector. Digital payments, banking services going online and other financial institutions using technology and online resources to ease up user traffic and online payment processing are all the parts of the technology finance trends for 2021.
Food and Beverage Financial Trends Of 2021
These include several new methodologies of conducting business in the food and beverage industry, most of which are concerned with the issues of supply chains and payment processes.
The latter have been helped out much by the fact that the overall finance industry has benefited from the digitalization of financial services; from payment processing to order delivery and shipment, everything has now been digitalized enough that a complete transaction including delivery can be completed from the comfort of one’s home, while on the other side, through a secure server, the business and its representatives themselves work from the comfort and safety of their homes.
Trends of 2021 for food and beverage finance include a complete transfer of operations and data to cloud setups, allowing for seamless data accessing. Another trend in 2021 includes the mechanization of industries, wherein prior to 2020, human workers were needed to work the food chain or beverage supply chain.
Now with the inclusion of automation, smart robotics and artificial intelligence, the need for humans to work in the food and beverage industry have been reduced. Also, much of the financial services, like payment processing and other financial matters, have now all been relinquished to the cloud services and IT setups.