Trends: Finance Sector Forecast for 2016

2015 was the year of the consumer. Connecting with your customer and personal engagement has become one of the biggest competitive advantages for companies. The financial service industry has embraced social media to connect more effectively with their customers and build their reputations.

However, just a few short years ago, banks, credit card companies, and investment firms were nervous about walking into the unpredictable real-time communication with their customers. From collaboration with financial-tech start-ups to more personalized client services, digital technology dominates trends in the finance sector this year.

There has been a lot of talks around the destructive innovations that led to the 2008 financial crisis but as we look towards the future for the financial industry, what are some of the biggest trends to watch out for in 2016?

Banking to the unbanked 
Financial companies, mobile providers, and banks are always looking for ways to get into the 'cash conversion' space. In other words, they're trying to find the most useful ways to provide cash transaction solutions to the unbanked.

Evidence of this growing trend in sub-Saharan Africa is everywhere. First National Bank's mobile money solution, e-Wallet, topped the R1-billion a month mark for the first time in July 2015. Other South African banks will have to step up their game, as a number of graduates are joining the workforce and will want to open bank accounts.

Moving to the cloud 
It seems these days every business wants to move to the cloud, and with good reason. It is an important development in the history of computing. Cloud allows companies to adopt a quick-to-market approach to launching new products and services and business innovations.

And with digital being everywhere, companies need to constantly re-invent their business strategies to meet the demand for innovation and growth, which is why more and more businesses are moving to the cloud.
Cloud supports business speed in emerging markets and provides a platform for improved productivity and improved insights fueled by analytical and social tools. There is no doubt that this trend will soar this year.

Big data 
2015 was a ground-breaking year for the financial sector, as they continue to learn how big data can help transform their processes and organizations. Now, with an eye towards what lies ahead for 2016, we see that financial services organizations are still at various stages of their activity with big data in terms of how they’re changing their environments to leverage the benefits it can offer.

As financial data becomes even more valuable, it’s going to get even harder to build new sustainable financial services businesses. Financial services companies that depend on their own data resources will be at an advantage here because historical financial data is so valuable (your credit history for example).

Security 
While the convenience of banking apps can't be denied, mobile technology has the potential to be a huge security risk in 2016, according to a report by McAfee Labs.
The importance of security best practices demands the need for constant innovation to stay a step ahead of cyber-crime. To survive, companies will have to become agile, particularly in the digital space.

Talent focus 
Employers are looking for more than technical skill, they want candidates who can help make business decisions. A recent report found that business analysts are among the most in-demand positions in the market. The report added that in-demand candidates possess business acumen, analytical skills, and are comfortable working with various technologies.

Competition will become fierce as the talent pool decreases but demand increases.

What financial services trends do you think will impact your business in 2016?

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