11 financial market trends to pay attention to

Until recently, the finance sector was resistant to trends in the financial market and its new technologies for its processes. However, since the bureaucratic and traditional nature of some operations has come to represent a loss to the business, the digital transformation process has become increasingly urgent.

By opening the doors to innovative technologies designed for the finance context, the market gains momentum. In this new context, he manages to enhance his activities, having more agility, productivity, efficiency and, consequently, positive results.

Given this scenario, find out how digital transformation has been guiding the main trends in the financial market for the coming years.

Technology in the financial market

To ensure agility, productivity, efficiency and positive results in the various processes, companies today can adhere to a series of technological solutions that help structurally and culturally transform their financial sector. 

Therefore, technology can broaden the area's horizons, as well as the entire business, since the financial sector can be considered an essential nucleus. In this way, its success or failure impacts other departments and the maintenance of the business itself. There are countless possibilities of services, programs and tools that can be applied in the financial market.

The use of data is an example of this. The collection, storage and accurate analysis of data, carried out by software , helps the finance manager to better assess the financial performance of the enterprise and, therefore, make better decisions about cuts and investments.

Data technology also helps to understand the level of user experience , giving the company possibilities to make timely adjustments that better match customer expectations.

Another point to highlight about the influence of technology in the financial market is the opportunity for new business models to emerge and consolidate themselves in the market, such as fintechs and techfins , which we will discuss later.

What were the impacts of digital transformation on financial market trends?

The digital transformation structurally impacted many social sectors, especially after 2020, with the high demand for digitalization of processes and activities.

We had education, health, retail , industry and other segments looking for ways to transform their business model into a format that would meet social and consumer demands.

With the financial market, the process was no different. More traditional financial institutions needed to review their processes and adopt new measures so as not to fall behind in a market that is growing at a dizzying pace. With the emergence of digital banks, fintechs and other types of businesses the trend.

Added to this context of broad competition, the change in customer consumption, which is also undergoing a digital transformation in habits, abandoning analogue processes and prioritizing digital ones. 

To get an idea, almost 80% of Brazilians use bank applications to carry out financial transactions. Of this total, 44% claim to use the bank application daily. Digital operations provide more practicality and convenience to the customer, who no longer needs to go to a branch, for example.

But this is just a point within a macro context of behavioral changes that have been taking place over the years and to which companies, in general, need to be aware.

On bank decentralization

A reflection of the digital transformation that we can also point out as one of the strong trends in the financial market is the decentralization of banks. As we said, there are new players in the market calling the shots and also offering different services for different consumer profiles.

Focused on the customer experience, this decentralization process aims to reduce bureaucracy in banking processes , such as opening an account or credit approval. Thus, the client becomes more independent of the financial institution for this type of action, for example.

Read also: How automating financial processes will transform your management?

As a result, the most consolidated banking institutions that precede the digital era can not only adopt tools that make their processes more innovative, but can also ally themselves with these companies based on cloud computing or big data, for example, establishing partnerships that can improve the company's performance in the market .

This does not mean that more traditional companies will go extinct. On the contrary, their processes, which are already considered outdated, must be replaced so that they remain active and interesting for the market.

Main financial market trends

Among the main trends in the financial market, we highlight eleven that are already underway and promise to consolidate in the year 2022. It is observed, however, that given the speed of information and technological development, other trends may emerge, revolutionizing, more once, the scenery.

1- Decentralization of the financial sector

Similar to what happens in the decentralization of banks, the financial market, as a whole, is going through a decentralization process, in which the customer becomes increasingly independent of institutions, being able to carry out financial transactions in multiple possibilities offered by new ventures, such as the fintechs.

This is a process that is being delimited, mainly, by the hyper-segmentation of the market. Thus, such business models, as already mentioned, reduce bureaucracy and offer more flexible solutions , such as the prepaid credit card or more accessible and diversified forms of payment.

2- Techfins and Fintechs

The terms seem synonymous, but the purpose of each is different. techfin is a company that offers customized financial solutions to other companies . Fintech on the is a financial technology company that offers entirely digital end-user products and services .

Thus, Fintechs and Techfins emerge as trends in the financial market, which will continue to grow and offer increasingly specific services. The investment in this specific segment has been considerable.

In 2021 alone, more than 500 million in the segment. The amount represented 25% of the total invested in the financial sector. The main attraction of fintechs is the combination of more innovative, less bureaucratic and also more profitable processes, since they have a much lower operating cost compared to a large financial institution.

3- Dark Analytics

Data analysis is a procedure that has been guiding the digital transformation and has been used for a long time. It is not by chance that we see expressions such as big data, data driven and data science appearing in the market, to further improve the application of data in market strategies.

In this sense, Dark Analytics is one of the trends in the financial market as it proposes this much more in-depth analysis of the consumer's profile and behavior, in order to extract relevant and strategic information for decision-making in companies, as well as the creation of new tools and innovative services in the financial market.

4- GDPR

The digitization of processes and strategic data-centered work make the LGPD one of the main trends in the financial market due to the legal aspect of information security that it involves.

In force since 2020, the General Data Protection Law establishes rules for the use of sensitive data of the Brazilian population, providing for punishments for institutions that do not comply with its guidelines.

Thus, as the finance sector is guided by data in most of its processes, it is necessary to adapt them according to the law, in order to avoid the penalties that the supervisory institution may apply. Being in compliance with the LGPD also offers the customer more security and, consequently, confidence in the services that the company offers.

5- Pix and Open Banking

Pix has revolutionized financial transactions in Brazil by allowing immediate transfers between different banks at no cost to the user. Making the conventional transfer process less bureaucratic, with limitations and subject to fees – in the case of different institutions.  

The facility was rapidly adopted in the country , already surpassing transactions made using TED, DOC and bank slips. The concept of Open Banking is mirrored in the pix, by offering more options of financial products to the user, allowing the sharing of the user's financial data between banking institutions.

6- Open Finance

Like Open Banking, Open Finance seeks to offer greater autonomy to users in sharing their data between different financial institutions , not just banks.

As a result, customers will have more product and service offerings to choose from and easier data migration in search of a solution that best suits their financial needs.

7- Cloud storage servers

This is one of the essential financial market trends for companies. These have their strategies based on data and move a large volume of information daily.

The cloud, in addition to ensuring secure storage, mitigating the risk of leaking sensitive customer data, enables a more dynamic management of such data, with all the technological infrastructure that providers offer today.

8- Artificial Intelligence

AI proves to be an important ally in financial market management, as it allows companies to increase productivity. This is because, with it, many processes can be automated and performed with greater precision. From customer service to data processing and predictive business analytics.

9- Hyperautomation

Hyperautomation seeks to further optimize processes in the company, including covering more complex areas. It encompasses artificial intelligence, machine learning and cognitive intelligence to perform daily tasks without any human intervention.

With this, she manages to bring a macro and more detailed overview of the customer's behavior, for example, in their consumption journey.

10- Extensive use of APIs

Finally, we highlight the increased use of APIS as one of the trends in the financial market. Also due to the growth and relevance that such a solution has in the context of digital transformation.  

By adopting APIS, the company manages to manage data in a more controlled and accurate manner. Integrating the different systems and databases that can be used in the business.

11- Automation of financial services

Currently, there are platforms that allow the integration of ERP software Thus promoting the reduction of bureaucracy and decentralization in access to banking services , contributing to the management of suppliers and high performance in the payable purchase sector.

This type of platform, like Sky.Simple , connects the ERP to several financial institutions, using data intelligence to facilitate, for example, the anticipation of receivables.

With Sky.Simple it is possible to transform the accounts payable and accounts receivable process into an intelligent process. The supplier portal facilitates communication between the two ends, sharing important information such as history and upcoming payments. The result is optimization of supplier and anchor store time, in addition to offering the possibility of anticipating the next receivables.

Read too: 

Anticipating receivables can avoid default

Next steps

Thus, we have seen throughout the text that the financial market is in constant transformation. And, this statement is consolidated as new technologies emerge, giving more dynamism to the sector's processes.

If before, we had client and institution in a trapped and bureaucratic relationship, we can see that the financial market trends listed above outline a present. And, a future in which autonomy and user experience will be the flagships of the market.

In addition, the financial market has been increasingly segmented, offering specific products and services for certain profiles. On the one hand, this expands the competition and variety of services available. On the other hand, it validates the relevance of using data in this segmentation process, ensuring assertiveness in propositions.

If you found this text useful and want to provide more security to the data of your customers and your company, count on someone who understands the importance of data and knows how to protect it .