Question

Based on your current employment, discuss what you believe are some of the key industry trends that will have an impact on your organization’s budget. If you are not currently employed, discuss the key industry trends for the industry or position you would like to pursue after you complete your degree.

Answer 1

I would like to discuss few key industry trends for Banking industry having major impact:

i) Increasing customization and personalization and AI: Given the focus on an improved consumer experience and use of advanced data analytics in banking, personalized communication is on the rise and will lead to higher response and conversion rates, and increased relevance with higher loyalty. This has resulted in increased IT spending in the last few years by the banking sector, also in the areas of artificial intelligence to improve customer experience and financial compliance.

ii) Higher cost of Compliance : With the industry moving towards Basel III norms, the banks need to keep more capital buffer and further with the rising compliance costs and a shifting regulatory landscape, banks need to adopt cost-effective softwares and technologies to save time and effectively manage their budget.

iii) Prevalence of Blockchain technology with the rise of cryptocurrency:  Blockchain relies on a global network to jointly manage a shared database and is well known for its security, as one needs to break into each and every computer to get access to data. So, banks are gradually trying to adapt to this latest tehnology and increasing their budget allocation on the same for the sake of security and gaining digital prowess.