BFSI Industry Trends Unfolding in 2023
The banking, financial services, and insurance industry bull-rode its way through an unhinged 2022 marred by uncontrollable inflation, hiking interest rates, general geopolitical instability, and more. These resilient, albeit battle-wounded firms are settling into 2023 balancing budget cuts with customer experience streamlining. Meeting client demands will require reevaluating goals coupled with an influx of new talent poised to master the modern BFSI ecosystem.
CSS Professional Staffing Group has compiled three market-leading 2023 trends within the office operations sphere of the BFSI industry below.
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The rebounding BFSI market is driven by talent and technology
BFSI markets including services like banks, insurers, credit unions, and wealth management organizations are scrambling to integrate fintech to meet customer demands. The yin and yang balance between lowering costs while improving client and customer experience requires big data, cloud, and AI tech adaptation. Competing with burgeoning digital-first institutions and big tech giants looming in the background is crucial.
“While market forecasts are scattered – some experts believe the market is already bouncing back while others fear the worst is yet to come – complete inaction is a death sentence regardless of current market performance,” notes Lauren Behar, CSS Professional Staffing Group Sales Director.
To stretch those BFSI muscles and provide an agile, accessible financial experience, market leaders and talent executives need insight into the major trends affecting the winds of the BFSI world. Here are three major developments BFSI leaders should be abreast of to build back stronger in 2023.
Cloud & AI
Banking in the cloud should be nothing new to major firms, but the opportunities it opens with AI and automation enablement will separate the dominant from the lame. Cloud migration allows financial institutions to centralize customer data and internal compliance while offering instantaneous risk management monitoring. Centralizing data simplifies record-keeping and creates a digital paper trail.
Applying AI to cloud-centralized data supercharges a financial institution. Accenture projected a profitability boost of 38 percent by 2035 for organizations that implement AI. That could lead to an economic boost of $14 trillion.
AI capabilities within the BFSI industry include:
Right Channeling: Guiding clients and customers through the correct service channels to streamline ticket resolution.
Touchpoint Personalization: Immediate recall of customer history for a fuller, more instantaneous understanding of a particular ticket to accelerate resolution.
Employee Productivity Insight: AI-driven dynamic data will uncover what systems work in the customer care pipeline and what don’t.
Incoming Big Tech
Legacy BFSI institutions are not only competing with one another to modernize, but also with digital-first financial solutions and big tech companies entering the space. Digital-first companies like Chime and Cleo (a Meta product) and tech giants like Apple and Amazon are vying for financial sector market share and heating up the competition. Insider Intelligence reported that Apple and Amazon could acquire 40 percent of the $1.35 trillion US financial services revenue over the next few years.
To combat these newcomers, financial institutions need to start from the ground up with talent and attract technically focused customer service and office support employees to bring financial customer care into the digital age.
Gig Economy
One target market that could alleviate the new competition from big tech and digital-first services is gig economy workers. In the past, their population has been deemed too risky to engage with but thanks to technological advancements particularly in fund tracking and application, this market is ready to be served.
According to Statista, the gig economy produced $204 billion in customer revenue in 2018 and is forecasted to more than double that by the end of 2023 at a figure of $455 billion.
Partner with an expert CSS Professional Staffing Group sales consultant to bolster your 2023 BFSI team
To build the perfect team equipped to maximize your business in 2023, reach out to the recruitment professionals at CSS Professional Staffing Group and begin your employment journey. Specializing in human resources, accounting and finance, office support, and call center support, CSS PSG has been a staffing industry leader for almost 20 years with stellar client reviews. Connect with CSS PSG today to hand your staffing need to the talent experts!