# Technology trends heat up for financial firms
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-09-16
Category: FINANCE
Category URL: https://financedigest.com/category/finance
Meta Title: Top Financial Trends to Watch in 2023
Meta Description: Discover how trends like humanised customer experiences, open banking inclusivity, datafication value chains, and AI innovation are shaping the future of
URL: https://financedigest.com/technology-trends-heat-up-for-financial-firmshtml

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![Philip Freeborn, CEO Operate at Delta Capita](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/philip-freeborn-450x448-1736815206928-compressed.jpg)

_By_ **_Philip Freeborn,_** _CEO Operate at Delta Capita_

Accelerating technological developments are creating a slew of critical opportunities and challenges for financial firms. Here are the most important [trends to watch](https://www.financedigest.com/top-5-investment-trends-to-watch-this-summer.html "Top 5 Investment Trends to Watch this Summer") in 2023.

**Customer experience becomes more human and personalised**

Digital experience has been critical to [financial firms’](https://www.financedigest.com/financial-firms-can-use-technology-combat-todays-cybercriminals.html "How financial firms can use technology to combat today’s cybercriminals") strategies for a decade. But since the pandemic, [customers have become less forgiving of companies](https://www.financedigest.com/disconnected-customers-are-one-of-the-biggest-problems-facing-financial-companies.html "Disconnected customers are one of the biggest problems facing financial companies") that don’t put them first in everything they do. For example, most people now [say they would switch banks](https://www.financedigest.com/swiss-national-bank-says-inflation-battle-not-yet-won.html "Swiss National Bank says inflation battle not yet won") for a better experience.

Firms are also learning they cannot digitise at the expense of the [human touch](https://www.financedigest.com/putting-the-human-touch-back-into-banking-magazine.html "“Putting the human touch back into banking”-Magazine"). According to research, [banks that combine humanity and personalisation into their digital interactions can forge very strong customer](https://www.financedigest.com/christmas-debt-hangovers-how-banks-can-help-customers.html "CHRISTMAS DEBT HANGOVERS: HOW BANKS CAN HELP CUSTOMERS") connections, build trust, and drive growth. Being able to complete the transaction, with ease and in a timely manner when the customer determines it suits them is where [Financial Institutions](https://www.financedigest.com/3-ways-financial-institutionscan-leverage-live-engagement-on-social-media.html "3 ways financial institutions can leverage Live Engagement on social media") need to get to.

Various technologies, such as conversational intelligence, can support your efforts to become more human and personal again. They will help you provide a unique and innovative customer-centric approach, and a productive and appealing [user experience](https://www.financedigest.com/poor-user-experience-plaguing-wealth-management-firms-warns-radical-company.html "Poor user experience plaguing wealth management firms, warns Radical Company") at every engagement point.

**Open** [banking drives inclusivity](https://www.financedigest.com/why-banks-could-stand-to-learn-a-thing-or-two-about-financial-inclusion-from-fintechs.html "Why banks could stand to learn a thing or two about financial inclusion from fintechs")

Improvements in the way financial companies store, access and use data will play an increasing role in driving sustainability – for example, in helping track environmental, social and governance (ESG)-related risks across [supply chains](https://www.financedigest.com/5-steps-to-successful-supply-chain-finance.html "5 Steps to successful supply chain finance").

Another growing aspect of [ESG is financial](https://www.financedigest.com/how-green-are-your-investments-why-esg-data-integration-is-key-for-financial-services-firms.html "“How green are your investments?” – Why ESG data integration is key for financial services firms") inclusivity. [Developments such as open finance](https://www.financedigest.com/what-skills-and-areas-of-knowledge-should-finance-teams-develop-during-2023.html "What Skills and Areas of Knowledge Should Finance Teams Develop During 2023? ") are driving inclusivity worldwide – for example, global account ownership grew from 51% to 76% between 2011 and 2021, according to the World Bank. But [open finance](https://www.financedigest.com/the-future-of-open-finance.html "The Future of Open Finance") is only just getting started, and many of its accessibility benefits are yet to be realised.

Inclusivity, however, is challenged in certain specific demographics too. For example, an increasing problem is that some parts of the population cannot get used to the heavy [digitisation of the financial](https://www.financedigest.com/make-way-for-the-rise-of-the-finance-super-apps-consolidation-of-financial-digitisation-tools-platforms.html "Make way for the rise of the Finance Super Apps – Consolidation of Financial Digitisation Tools & Platforms") world since the global pandemic – and are increasingly left behind. These groups have different [servicing needs](https://www.financedigest.com/top-5-seo-services-you-need-to-succeed-in-2022.html "Top 5 SEO Services You Need To Succeed In 2022") and may prefer human assistance and one-on-one collaboration.

DC’s [technology supports businesses](https://www.financedigest.com/2016-the-year-of-technology-financing-the-year-of-business-growth.html "2016 – THE YEAR OF TECHNOLOGY FINANCING, THE YEAR OF BUSINESS GROWTH") to service the whole spectrum of their customers, and specifically assists customers who cannot fully cope with a technology-heavy approach.

**Datafication** [leaders reinvent the value chain](https://www.financedigest.com/g7-finance-leaders-pledge-financial-stability-supply-chain-diversity.html "G7 finance leaders pledge financial stability, supply chain diversity")

Datafication means turning many aspects of our life into data, which then [realises new forms of value](https://www.financedigest.com/2021-predictions-realising-the-value-of-payments-transformation.html "2021 Predictions: Realising the Value of Payments Transformation"). The financial [industry has one of the highest levels of data](https://www.financedigest.com/theres-nothing-artificial-about-the-role-of-ai-and-data-in-the-finance-industry.html "There’s nothing artificial about the role of AI and data in the finance industry ") intensity, and so is one of the most disrupted by the trend toward datafication.

Banks who [lead on datafication will increasingly be able to improve customer](https://www.financedigest.com/customer-engagement-whos-leading-the-way.html "Customer engagement – who’s leading the way?") and employee experience, operational effectiveness, strategy and compliance.

It will also allow them to develop new revenue opportunities; and improve transparency and decisions about upstream and downstream supply and distribution. Datafication will therefore enable technology leaders to reinvent parts of the [financial services](https://www.financedigest.com/4-ways-high-performance-analytics-powers-financial-services.html "4 ways high-performance analytics powers financial services") value chain. This trend is exacerbating a shortage of data scientists and quants in the industry.

**[Artificial intelligence](https://www.financedigest.com/types-of-artificial-intelligence.html "Types of artificial intelligence") becomes a critical driver**

Artificial intelligence is becoming a critical driver of growth and sustainability in [financial services](https://www.financedigest.com/the-future-of-financial-services-tech-evolution-not-revolution.html "The future of financial services: Tech evolution not revolution ").

AI will increasingly enhance anti-financial crime efforts by, for example, analysing large numbers of transactions to highlight [fraud and money laundering trends and detect](https://www.financedigest.com/the-clues-to-detecting-fraud-are-hidden-in-relationships.html "THE CLUES TO DETECTING FRAUD ARE HIDDEN IN RELATIONSHIPS") them in real-time.

AI-powered chatbots can minimise the workload in call centres, and transform the customer experience. As mentioned, the [rise of so-called conversational AI will enable more humanised customer](https://www.financedigest.com/id-fraud-is-on-the-rise-can-financial-services-do-more-to-protect-their-customers.html "ID fraud is on the rise: can financial services do more to protect their customers?") experiences; rather than the limited communication chatbots have delivered so far.

Firms will also increase their use of AI to improve experience and efficiency in lending decisions, insurance, [wealth management](https://www.financedigest.com/analysis-credit-suisse-collapse-threatens-switzerlands-wealth-management-crown.html "Analysis-Credit Suisse collapse threatens Switzerland’s wealth management crown"), regulatory compliance, and much more.

**The cybersecurity battleground changes**

[Financial crime](https://www.financedigest.com/australia-financial-crimes-regulator-opens-investigation-into-britains-entain.html "Australia financial crimes regulator opens investigation into Britain’s Entain") continues to increase in volume and sophistication. Two out of three businesses feel their cybersecurity risks are growing – with [financial firms](https://www.financedigest.com/turning-a-blind-eye-wont-work-for-financial-firms-as-the-fca-tightens-its-grip.html "TURNING A BLIND EYE WON’T WORK FOR FINANCIAL FIRMS AS THE FCA TIGHTENS ITS GRIP") among the biggest targets.

In the first half of 2021, criminals stole £753 million through fraud alone, according to UK Finance – an annual increase of 3%. However, banks’ advanced security systems prevented a further £736 million from being taken.

As technology advances – through [mobile payments](https://www.financedigest.com/what-is-the-optimum-mobile-payment-mix.html "What is the optimum mobile payment mix?"), digital servicing, cloud migrations or AI – more cyber-attacks follow. Integrity attacks – which change data rather than destroying it – affect trust and are the new frontier in the war against cybercrime. [Financial institutions](https://www.financedigest.com/the-future-of-financial-institutions-in-2023.html "The Future of Financial Institutions in 2023") need to continue and invest more in education and training, prevention, detection and recovery.


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