# The finance industry – A look at trends and predictions for 2021 Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2020-12-30 Category: FINANCE Category URL: https://financedigest.com/category/finance Meta Title: The Role of Automation and AI in Finance for 2021 Meta Description: Discover the impact of automation and AI on the finance industry in 2021, with insights on efficiency, security, and the ethical aspects of technology URL: https://financedigest.com/the-finance-industry-a-look-at-trends-and-predictions-for-2021html ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/map-background-with-business-peoplezjael1sl-scaled-1736838653868-compressed.jpg) _By **Tim Blok,** CTO, Onguard_ The wholesale shift towards remote working has proved to be one of the many challenges that has stood in the way of the finance industry in 2020. While there is light at the end of the tunnel for Covid-19 thanks to the initial rollout of the vaccine, 2021 looks set to be a year of continued uncertainty when taking other factors such as Brexit into account. Numerous hurdles are therefore on the horizon for finance professionals in the [coming year](https://www.financedigest.com/mild-sourness-products-is-expected-to-fuel-growth-of-sour-sugar-market-in-coming-years.html "Mild Sourness Products Is Expected To Fuel Growth Of Sour Sugar Market In Coming Years"), and there is a greater focus on innovations such as automation and artificial intelligence (AI) and their role in solution-driven technologies. But how crucial will these technologies be in 2021? **The role of automation and AI** With the office-based working rulebook rewritten in 2020, the resultant move to remote working has had wide-reaching ramifications for the [finance industry](https://www.financedigest.com/navigating-consumer-data-in-the-finance-industry.html "NAVIGATING CONSUMER DATA IN THE FINANCE INDUSTRY"). With many finance professionals having now [adapted to working from home](https://www.financedigest.com/how-the-uk-adapted-to-working-from-home.html "How The UK Adapted to Working from Home"), it is expected that many will look to continue to do so in some capacity in 2021. With a smaller workforce in the office, this potential shift places more strain on applications, software, and solutions. It is therefore more important than ever for financial institutions to look to [automate more processes](https://www.forbes.com/sites/forbestechcouncil/2020/10/26/what-to-know-before-you-automate/?sh=18e9f46e6736) where possible, while also remaining conscious of ensuring these systems maintain high levels of security. Focusing on efficiency and a drive to cut costs also creates opportunities to pursue [automated processes](https://www.financedigest.com/the-implantable-biomaterials-market-to-move-ahead-on-rpa-robotic-process-automation.html "The Implantable Biomaterials Market to move ahead on RPA (Robotic Process Automation)") and systems. People are generally the largest costs to a company, and utilising automation in the right [way can ensure that finance professionals provide the most efficient](https://www.financedigest.com/finance-operations-efficiency-7-ways-to-slick-up-your-department.html "Finance operations efficiency – 7 ways to slick up your department") value to the organisation. The economic effects to come in 2021 due the pandemic will place greater importance on the [need to be as efficient as possible](https://www.financedigest.com/do-you-need-financial-guidance-or-financial-advice-or-possibly-both-find-out-here.html "Do You Need Financial Guidance Or Financial Advice – Or Possibly Both? Find Out Here"). Whether we even realise it, AI and machine learning is rapidly [impacting our everyday lives in a variety of ways](https://www.financedigest.com/four-ways-impact-acts-as-a-source-of-value-for-startups-and-investors.html "Four ways impact acts as a source of value for startups and investors"), both professionally and personally. However, when considering how best to implement these technologies, financial organisations [need](https://www.financedigest.com/global-crises-that-need-the-finance-industry.html "Global Crises That Need The Finance Industry") to carefully consider issues around transparency, particularly in how AI comes to a conclusion. In 2021, an increased focus will sit with uncovering and defining the ethical aspect of AI deployments, and it is likely that new regulations will be implemented in the [coming years](https://www.financedigest.com/mena-infant-milk-formula-market-to-record-exponential-compound-annual-growth-rate-in-the-coming-years.html "Mena Infant Milk Formula Market to Record Exponential Compound Annual Growth Rate in the Coming Years") in order to shed some light on this. **Forms of communication** ![Tim Blok](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/tim-blok-cto-450x300-1736838653376-compressed.jpg) Tim Blok While a focus will most certainly sit with processes that can ease the [working day](https://www.financedigest.com/no-more-five-working-days-how-getting-paid-immediately-can-transform-black-friday-for-merchants.html "No more ‘five working days’ – how getting paid immediately can transform Black Friday for merchants") of the finance professional, 2021 will also see the development of collaborative tools for effective employee communication. With some form of Brexit on the horizon, bringing with it changes to [data regulations and security](https://www.financedigest.com/how-financial-services-can-secure-data-and-build-trust-in-todays-modern-environment.html "How financial services can secure data and build trust in today’s modern environment"), it will be even more crucial for finance professionals to maintain clear communication to ensure everyone is up to date. With organisational culture moving to the forefront for many due to 2020’s shift to [remote working](https://www.financedigest.com/helping-employees-recover-from-remote-workings-mental-health-implications.html "Helping employees recover from remote working’s mental health implications"), for those who collaborate across the globe it’s likely that the coming year will bring renewed focus on the concept of communication etiquette, such as suitable times to contact employees in different time zones. An ethical and considered approach to communication will prove vital [next year](https://www.financedigest.com/uaes-adnoc-to-open-swiss-trading-office-next-year.html "UAE’s ADNOC to open Swiss trading office next year"). With many people now more isolated than ever, a consideration of mental health will be key, and a [personal and customer first approach should be the go-to for finance](https://www.financedigest.com/cracking-the-personal-finance-code.html "Cracking the Personal Finance Code") professionals while communicating with customers via video conferencing technology. Technology will also play a [key role here with new applications](https://www.financedigest.com/catharanthine-market-2022-research-on-user-demand-size-applications-key-players.html "Catharanthine Market 2022 Research on User Demand, Size, Applications, Key Players:") such as application programming interfaces to help better serve customers. Cloud-based programmes that facilitate real-time collaboration have so far been under-utilised for internal and external communication, despite many [support tools having already shifted to the cloud](https://www.financedigest.com/tech-amigos-provides-unrivalled-aws-cloud-service-support-for-autorama-groups-leading-brand-vanarama.html "Tech Amigos provides unrivalled AWS cloud service support for Autorama Group’s leading brand, Vanarama"). Driven by the shift to remote working, we’ll see these evolve more quickly, and there is certainly scope for these kind of programmes to be more widely adopted by organisations in 2021, providing the basis for [work to be completed with the input of all parties in a live environment](https://www.financedigest.com/the-benefits-of-creating-a-great-working-environment.html "The Benefits of Creating a Great Working Environment"). **Adapting to** [technological advancements](https://www.financedigest.com/banks-deploy-ai-3-major-technological-advances.html "Banks Deploy AI – 3 Major Technological Advances            ") At the core of future developments in 2021 is the realisation of the benefits that [technological advancements can provide the industry](https://www.financedigest.com/sensor-based-glucose-measuring-systems-market-by-2028-with-technological-advancements-growth-of-industry-overview-and-dynamics-with-affecting-factors-2.html "Sensor Based Glucose Measuring Systems Market by 2028 With Technological Advancements, Growth Of Industry, Overview and Dynamics with Affecting Factors"). The new [year will see](https://www.financedigest.com/the-next-upcoming-years-to-see-the-neurovascular-embolization-devices-market-witness-an-innovation-based-overhaul.html "The Next Upcoming Years To See The Neurovascular Embolization Devices Market Witness An innovation-based Overhaul") the increased centralisation of solution-driven technology, with the benefits of AI and automation being highlighted. [Technology has now advanced](https://www.financedigest.com/the-cosmetics-odm-market-to-take-a-technologically-advanced-somersault.html "The Cosmetics Odm Market To Take A Technologically Advanced Somersault") to a level where it can take full responsibility for entry-level roles within the organisation, easing the day-to-day demands on the finance professional and enabling them to oversee a process without being involved in the lower-level tasks within a project. In addition, technology can help lay the foundation for effective remote working in 2021, and a responsibility will sit with organisations to ensure that their digital infrastructure is in place and set up efficiently to support this. As finance professionals look to 2021, technology will no doubt assist in almost every aspect of how they work, and the [industry must](https://www.financedigest.com/why-the-industry-must-simplify-cybersecurity.html "WHY THE INDUSTRY MUST SIMPLIFY CYBERSECURITY") take advantage of its potential. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---