If one industry has learned to roll with the punches, it’s banking. Our global banking institutions form the foundation for all economic activity. Within this all-encompassing sector, certain megatrends have arisen which have transformed the financial landscape forever. Investors would do well to recognize these trends in potential investments as each, and every one can be seen as a hallmark of quality within a company. Here are the top five banking industry megatrends that should matter to investors.
Technological Innovation Is A Must
The entire banking industry has crossed over to fully digital operations. Any enterprises straggling while crossing the digital divide will be left behind, which forespells doom for their future and stock price. The best leaders in all sectors will be redefining the bounds of how work can be done, effectively changing modern workplace habits to far more efficient decentralised, digital models. With this transformation comes a need for technology. Investors should always assess the current capabilities of companies along with their commitment to empowering customers and staff with innovative technology. The better the technology stack of the company, the more likely it is that they’ll rebound quickly from any challenges faced.
Society Gets Serious About Green Initiatives
The Bank Of New York Mellon concluded that all but a quarter of the world’s central banks, sovereign wealth funds, and public pension funds utilise environmental, social, and governance factors in their investment process, and so should you. Before you decide to invest, take a close look at your prospective investment and evaluate how sound, progressive and actionable the company in question’s environmental and social strategy is. Carbon emissions must come down, and the planet is acknowledging this faster and faster. Even cryptocurrencies felt the crunch when China cracked down on mining, innate motivations aside. If banks cannot deliver their services while being committed to change that is busy being realised, there’s little hope for their stock value to rise.
Focus On Multi-Channel Value Providers
Banking institutions have begun to start sourcing new channels of value. Financial titans by now know that customers aren’t appeased by basic service delivery only. Value needs to become more and more apparent in the very efficiency offered in delivering products and services. Once again, one can follow in BNY Mellon’s example, which has migrated over 400,000 transactions to digital in a little under six months to drive up the perceived customer value through raw efficiency alone. Is your potential investment doing enough to diversify and drive the value that it offers up? If not, we suggest looking for a better pick.
Look For Unified Mobile Communications
One key lesson from global banking that all investors need to stay aware of as a hallmark of high-quality service and good potential growth is how investment, interaction, and customer service practises are standardised to an app. Unified communication interconnects the entire enterprise allowing for a far better user experience. Pay close attention to how you conduct business with the potential company you wish to invest in. The presence of an intuitively designed mobile app that amalgamates multiple communication channels and analytics services into one is normally a sign that the business is on the right track.
Bring Out The Best With Big Data
All data is valuable, and the banking industry has been leveraging the power of big data for a long time. Innovations in big data within banking span everything from enhanced cybersecurity to effective, highly-appreciated customer loyalty programs. Data allows a company to deliver information that it knows has value and relevance to its customers. Does your next stock pick have a backbone built on reliable big data practises? Do chatbots and other process automation feature when interacting with customer support? Is there a loyalty program that’s non-intrusive and welcomed by the brand’s following? Answer yes to these questions, and you may have your next solid investment.
Note: Please do not invest money or assets in the financial markets that you cannot afford to lose. This article should not be construed to be investment advice and is for information purposes only