In an interview on Bloomberg TV, head of executive services at Citadel Securities, Joe Mecane, said retail investors are responsible for more than 25% of the U.S stock’s market activity. These figures were recorded amid the high volatility triggered by COVID-19, according to Business Insider. This analysis isn’t a surprise to individuals familiar with the significant role retail investors have in government debt markets. In Hungary, domestic retail investors own nearly 25% of the government debts. And about 80% of Ireland’s population has a minimum of one government debt asset.
The potential for retail debt schemes gained stability over the past few years, thanks to innovations in fintech that offer governments affordable and inclusive strategies. The trend recently got a boost as digital banking gained scores of new customers since the beginning of the coronavirus crisis. With more people relying on digital banking, fintech companies must adopt effective strategic planning trends to create more affordable and inclusive retail investment programs.
Digitizing The Organization
Many banking organizations assume digital banking and being digital are the same, but that’s not the case. Being digital entails more than converting paper into PDF. It’s about rethinking business processes from the core of the institution. Banks must review how digital technologies, revised back-office space, and customer data can work in harmony to promote customer satisfaction. Management must also think of ways digital affects cultural shift from traditional banking methods to being a digital bank. To achieve the desired results, finance institutions need to incorporate resource planning tools throughout the digital transformation period and afterward. Using the right resource management software helps track real-time performance in all departments, so managers don’t have to wait for team leaders to report progress. This move saves finance organizations time and money.
Improving Customer Experience
Enhancing the customer journey in banking is a primary objective during the planning phase for most CFOs. However, the customer experience in most banks and credit unions hasn’t transformed much since the 80s. With more than 50 percent of banking transactions done via digital platforms, customers want easy but secure ways to engage with their banks. Financial institutions can proactively interact with their customers in simple ways that strategically save money and time using data and advanced analytics. This value-added proposition results in increased customer loyalty because consumers feel more satisfied with customer service quality.
Chief financial officers (CFOs) work continuously to plan for finance analytics, processes, and technologies to future proof the finance sector and drive market growth. However, emerging trends tend to shape priorities in the finance sector. Besides digitizing the bank and enhancing the customer journey, other trends include recentralizing finance analytics, prioritize reporting, and embrace the AI revolution.