The survival of FIs and the vendors that work with them depends on quick recalibration and even quicker action. As we head into the coming year, these organizations will need to adapt to issues like climate change, customer expectations for omnichannel experiences, and new technology like the metaverse.

Aite-Novarica Group has identified 10 trends that will shape retail banking and consumer payments around the globe in 2023 and beyond.

Some of these include:

• Payments orchestrators allow merchants to tune their payments mix: Merchant payment acceptance will continue to be a complex challenge, and complexity will only increase over time. Fortunately, new types of processors have emerged to help merchants with this problem. Expect to see the payment orchestration category of processors grow significantly in 2023 and 2024. 
• Fast times arrive for alternative credit: Increased consumer demand, greater regulatory scrutiny, and a tough economic environment will make for a tumultuous year for alternative credit, particularly BNPL. Unless providers assist consumers in tracking their obligations and educate them on the hazards of overextension, the year will not fare well for many. 

• Threats to the cards business accelerate: Alternative payment types hoping to replace card transactions have never been higher as merchants and billers look for lower-cost payment options. Not only will existing payment alternatives remain strong, but new competition will also come online. Although cards are sure to maintain a leadership position through 2023, they may give up some volume to these growing threats. 

• Climate change becomes front and center for FIs: There are few green banking initiatives in the market today, yet consumer demand will rise in 2023. Fintech firms will undoubtedly make a green play for market share in 2023, and smart FIs will take advantage of this green opportunity to become embedded at the center of a consumer’s life. 

Retail banks must ensure the right balance between self-service and the human touch, or they will be left behind. While not all of the challenges FIs will face in 2023 are new, they are certainly areas to pay attention to in the year ahead.

To learn more about all 10 of these trends, read our full report Top 10 Trends in Retail Banking & Payments, 2023: Balancing Stability and Growth Amid Economic Volatility or reach out to me at dalbertazzi@datos-insights.com. You can also watch the recording of our January 24th webinar where we dove into each of these top trends in detail. Click here to access the recording.

The post Retail Banking and Payments Trends to Look for in 2023 appeared first on Datos Insights.

COVID-19 has changed many aspects of daily life since it first emerged. One key area of change that impacts the retail banking and payments industry is the channels through which consumers browse, purchase, and pay for goods and services.

In addition to the pandemic, the Great Resignation, changing regulatory pressure, new data sources, and increased global attention to virtual currency are all affecting how people and organizations conduct transactions. Financial institutions have already been adjusting their business models to keep up with consumer expectations, and 2022 will be a year for continued growth in this space.

Aite-Novarica Group has several predictions for what is in store in the retail banking and payments industry in 2022. A few of these forecasted areas of interest include:

• The transformation of the point-of-sale payment terminal market.
  The traditional payment ecosystem is fundamentally changing. Contactless payment technology, which was already increasing in popularity as smartphones became ubiquitous, has been rapidly adopted during the pandemic. Digital payments are becoming the norm even in industries that were relying on traditional methods of payment in recent years. In addition, APIs are helping smooth out the implementation of new platforms and technologies that are driving changes to point-of-sale payment terminals. Advances in this area are likely to continue flourishing.
• Buy now, pay later going mainstream.
  The prevalence of buy now, pay later (BNPL) is only going to keep increasing. Financial institutions are likely to enter this space, offering BNPL options to customers. Not only will BNPL options be presented in stores, but they will become a standard form of payment. This means regulators will take notice and become active in this space.  
• Cryptocurrency becoming an accepted payment type.
  Various cryptocurrencies have gained lots of press in recent years. Governing bodies and financial institutions may not have reached a consensus on these forms of payment, but their adoption rate is growing. This movement will not slow down, and more and more consumers will be looking for options to pay with cryptocurrencies.
• Payments being embedded throughout the customer journey.
  As globalization continues, businesses have more options when it comes to how to provide services and who they conduct business with. For financial services providers, staying competitive will mean the ability to offer a global managed payment network that is simple to access. Saving companies time and eliminating complications across the customer journey will make providers more desirable services partners. In some cases, this may mean revisiting discussions about prepaid transactions.

There is much more in store for financial institutions and service providers in this space in the upcoming year. To learn more about what 2022 holds for retail banking and payments, register here for tomorrow’s webinar covering these trends.

If you can’t make it, don’t worry! You can read the full list of predictions in Aite-Novarica Group’s report Top 10 Trends in Retail Banking & Payments, 2022: From Disruption to Transformation or reach out to me at dalbertazzi@datos-insights.com.

The post Evolving Trends for 2022 in the Retail Banking and Payments Market appeared first on Datos Insights.